Need for Local Home Brew Store

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Morrey

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I live in a SC market well underserved by local home brew supplies. My nearest LHBS is 65 miles away and the really good ones are 100 miles. My area is semi-affluent and the craft beer scene is up and coming. We are 3 hours from Asheville NC.

I was approached by a local brewery owner about adding a LHBS on the grounds of his spacious operation. Not that he wants to do this himself, rather he was hinting at an investment partner. Without much knowledge of this type of business....how many LHBS owners actually realize the potential for profitability? I realize there are well run as well as poorly managed LHBS businesses, but what is a typical success ratio for liquid hobby stores to make it compared to those who fail? Is this a business investment to avoid?
 
Profitably is very low on LHBS especially b/c of the online presence of NB and many others. I have done my homework on this as I thought there was a need as well. Once i realized they don't make any money...at all...it made since why there isn't any out there.
 
That Forbes article was barely worth the time to read it. It's about one store that sold brew supplies as a part of their offering. They also sponsor a running club. I hear their shoe sales are dismal this year as well (sarcasm). Then, when the supply sales didn't turn a profit (because, hello, people go there to buy beer, not supplies), they moved it to the back and sold it to the employees (set up for failure?). And naturally it failed. They made the assumption that people who drink beer want to make it.

I like to drive my car, but the dealership doesn't sell tools or oil. You don't buy printers at FedEx/Kinko's. This model didn't seem to work.

Why not combine brewing supplies with a complementary business and offerings? Canning supplies, cheesemaking, smoking, cooking? Sell projects to people who already DO projects.

Oh, they added in some details from a survey that indicates that there is a 1.5% decrease in the number of stores this. (They seem to have real time updates??)

I'm curious about things like Brooklyn Brew Shop or similar outfits that sell to younger people. There is a much bigger DIY attitude in the world these days, but you can DIY a gallon of beer with very little equipment, etc.

Online sales of anything will hurt, so they need to be competitive. I know one of my local shops does a good online business because they are competitive.
 
I live in a SC market well underserved by local home brew supplies. My nearest LHBS is 65 miles away and the really good ones are 100 miles. My area is semi-affluent and the craft beer scene is up and coming. We are 3 hours from Asheville NC.

I was approached by a local brewery owner about adding a LHBS on the grounds of his spacious operation. Not that he wants to do this himself, rather he was hinting at an investment partner. Without much knowledge of this type of business....how many LHBS owners actually realize the potential for profitability? I realize there are well run as well as poorly managed LHBS businesses, but what is a typical success ratio for liquid hobby stores to make it compared to those who fail? Is this a business investment to avoid?
I'm in SC as well. And don't have much around me either. Mind me asking where you're located, or at least the region?
 
Ballast Point started with a homebrew shop in front, and the fermenters in the back. (I'm not even sure they were Ballast Point yet) They might be an informational resource.

You might have an advantage starting a shop if it's associated with the local brewery. Due to quantities ordered, they would get better prices than the local home brew shop. Keeping the books separate might be a PITA however.

I would also say that a strong web presence, with the ability to order online, and pick up a few hours later, (or same day shipping) would be invaluable to getting the business off the ground methinks. I'm really tired of ordering on a weekend, and getting told on Thursday that my order finally shipped. Shipping Boy needs to get his tukhus in gear on Mondays, not Thursdays.
 
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I believe the owner of our LHBS does ok. I support him because he's an awesome guy and a great resource to have locally. Though he has mentioned that hops are really what keeps the lights on and I know he's way over priced on hops so I wonder how sustainable that is. He's been on vacation all week and the dude he has filling in is a complete moron. If this guy owned it I certainly would switch to online ordering.

Key take away is that if you don't know your **** about brewing and you are not the type of guy that can charm people into paying more to support a LHBS then you'll probably fail. Otherwise it looks like a fun way to make a living.
 
I agree with these accurate responses. The bottom line for success as I see it is....."It all depends". This is a thin market concept in which only a small percentage of the population will purchase supplies and make their own beer. Just because a person enjoys drinking beer doesn't mean they are going to brew it themselves.

Another big factor is the attitude and helpful (knowledge base) nature of the owner. I feel he/she should be a mentor and a good teacher to help new brewers get started. These new brewers are the folks who are going to buy starter kits and supplies locally before they get the idea they can find items online at potential savings.

Another big advantage is the brewery owner (being IN a brewery may be a huge plus) would wall off a glassed in area to become the liquid hobby retail center. His shiny fermenters and bling would be visible in the backdrop. His great brewery and taproom are a potential plus for capturing business. I would simply pay him rent based on the square footage we glass in. I even suggested we have weekend classes for beginners and alternating weekends for intermediate/advanced brewers in that he would join me as a guest presenter. Lots to iron out and kick tires. Part of me wants to do it, then the business part of me says be careful.
 
It sounds like with the space and relationship, it could be an easy way to test the waters. Especially if you can drum up support from a local brew club, etc.
 
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