The Importance of Location

[Brothers Vilgalys Spirits]

I live in North Carolina, a 'total control' state. Currently all distribution and retail is controlled by the state. There's a law being driven by a distiller in Asheville (Troy and Sons) that would allow bottle sales and samples in the storefront. It will be voted on again in the spring. It's hard to say what it's chances are before the election this fall.

I'm at the point where I've begun looking at various facilities, and I'm somewhat caught in the middle between a "prime" location downtown, which is pretty reasonably priced. It's close to bars and restaurants, farmer's market, etc. I've also seen several places in industrial areas (also really ghetto areas) which are rock-bottom-cheap. The difference in price ends up being about $10k a year in rent.

How important are store-front bottle sales and samples to most start-ups? My instincts tell me they are *everything* and the swanky place downtown is likely worth the extra investment for brand exposure, community involvement, etc, etc.

My next plan is to get some more concrete data about how much foot traffic I could expect, demographics for the neighborhood and so on.

In the mean time I'd be curious what everyone's thoughts or experiences were. Thanks!

Thanks!

Rim Vilgalys

Brothers Vilgalys Spirits

http://www.facebook....VilgalysSpirits

[bluestar]

If it is only $10K per year difference, and all your other requirements are satisfied, get the storefront in a good location. Your direct sales will make up the difference in rent alone, and the ability to have passerby and planned "tour" traffic is great advertisement.

[Brothers Vilgalys Spirits]

I certainly agree if bottle sales become legal here, the decision is a no-brainer. I guess I'm really trying to figure out if the location would be worth it in case the law doesn't pass. I suppose I've got some political science-ing to do

[JohninWV]

Bottle sales and samples are allowed here in WV. I'll tell you that it's a huge part of our business. Durham should provide plenty of retail business that will really help generate cash flow, and spread the word, while you are growing your outside sales business. As you probably know, in retail, location is HUGE.

I can't help you generate an analysis without retail sales as I don't know your financials....but do everything you can to get the law passed.