Liquor stores are considered retail but should be put in a category all their own. The laws and regulations that pertain to this type of retail business are unique and vary depending on your state and location.

A Little History

In the United States Constitution, the Twenty-first Amendment gives states the power to regulate the sale and consumption of alcoholic beverages. Each state has their own laws pertaining to different types of alcohol and whether they must be sold in specialty liquor store or sold in other store types.

In many states all alcoholic beverages can be sold in any store such as drug stores and gas stations as long as they have a license to do so. There are 17 states that have state controlled specialty liquor stores, also known as Alcohol Beverage Control States or 'ABC States. These stores often sell hard liquor only although there are some that also sell wine, but they do not sell beer. While these states may currently have state run liquor stores, many are opting to change the laws so that liquor stores can be privatized.

This infographic from Stateline Infographic might give you a clearer picture.


Liquor Sale Regulations

When it comes to liquor sales, record keeping is of high importance as there are strict laws on when and what can be sold. Failing to do so can really cost you. Depending on your State or County, there may be different taxes on different products. There also may be state assigned distributors for certain retailers.

Choosing the Right Point of Sale for Your Liquor Store
A point of sale system can be used to make all these and other challenges simple to manage. There are thousands of retail point of sale systems out there to choose from. Let's start with basics for retail and then we can get into more liquor store specifics for point of sale.

Basic Features

  • Transaction Processing
  • Payment Processing
  • Process Returns and Voids
  • Beginning and End of Day Procedures
  • Reporting Tools
  • Customer Relationship Management (CRM)
  • Transaction History Lookup
  • Loyalty Program
  • Mix and Match Kit Building

POS Features Important to Liquor Stores
Compliance Reporting

  • Based on localized regulations and laws you will need to be able to create reports that show regulation compliance. Having a POS system with customizable reports is key, the other half is working with a point of sale company that has liquor store experience. This can be a huge plus in the POS checklist as they can assist with setting up the report and giving priceless advice.

Inventory Management

  • Liquor stores carry a small amount of a large array of products. It can be very challenging keeping up with this type of inventory. A point of sale system tracks your inventory as it is being sold.
  • You can also set re-order levels so that the system reminds you to re-order when it is low.
  • Customizable reporting on sales trends can also help indicate when, what and how much to order. This way you are efficiently stocked and never miss a sale because you are out or that product.
  • Many Liquor Store find that there inventory can be properly managed with a POS system and hiring a company to come in once a month to count and reconcile inventory.
  • The software should also be able to show the supplier of each bottle to comply with liquor sales regulations. Be sure to check with your local laws as to how long the records need to be kept.

ID Scanning

  • Properly checking ID's is a very important part of running a liquor store as it's required in every state and can have debilitating penalties for selling to minors.

Security

  • Employee Management can be tricky, especially if you have multiple locations, you can't be everywhere at once. Having secure ways to sign in to your POS system can help ease your mind and ensure accuracy when handling the Employee Audit. Many companies have sign in pins while others require a key card as well.
  • One of the latest innovations in logging in is finger print scanning. There is nothing more certain in identifying a user that their fingerprint. This way when you are going over reports you can look at employee transactions and prevent inventory shrinkage by being able to hold that employee accountable.
  • Surveillance is another way to audit with your POS system. These days your surveillance can integrate with your Point of sale and you can watch the transactions on the surveillance footage as they take place.

Questions to Ask