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Business Idea

preciousb
preciousb Posts: 287 Forumite
Part of the Furniture Combo Breaker
edited 7 January 2010 at 1:41AM in Small biz MoneySaving
Hi all,

Myself and a friend thought about selling alcohol to students but as a delivery service. We have been dwelling on this idea for months.

There are not many around in our city and it seems like a good idea as a start.

I know there are a lot of licence issues but has anyone actually done a business like this? It is just an idea at the moment but we really are keen to go into this.

Comments

  • pitkin2020
    pitkin2020 Posts: 4,029 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    licence issues aside, whilst i think you may have a reasonable idea have you looked into the costings in depth, as i dont think your going to make a great deal of profit from selling to students. Firstly many supermarkets and even off licences have superb deals on cheap drinks mainly because they have the buying power to get it cheaper so you would need to compete with these and finding a supplier with a better price may be hard. Students are usually pretty strapped for cash (once loans run out lol) so i cant see many paying extra just for a delivery.
    You will also have the cost of delivery (Fuel, tax, mot, business insurance, upkeep of car/van), storage costs etc etc
    I'm not saying its impossible but i think the profit margin would have to be so low to get people to use the service esp at the start, you would also need a good base of customers in one location to make it worth while.
    If there is really no supermarkets, off licences or even takeaways for miles around you may do well as you could get orders for take-away and deliver at the same time
    Everyones opinion is the most important.....no wonder nothing is ever agreed on.
  • paulwf
    paulwf Posts: 3,269 Forumite
    Have a look at Crateman if you haven't already.

    Their business model seems to be to open 11pm to 6am when there are no alternatives and they can then charge very high prices.

    They've been around a while now so I suppose it must work. With their pricing model you could even start off by buying your stock when Tesco has offers on.

    Looks like you'd need a big city to make it work, and not sure I would want to be on call for those hours, but good luck with it.
  • lcharm
    lcharm Posts: 633 Forumite
    Check these guys at, as per Paul's post these guys all do late night delviery,

    http://dialadrinkgb.com/
    And theres another Dial A drink in London too that use justeat.com as a marketing channel.
    I've never used them as the only time i've needed alcohol at those hours is in a bar/club!

    You'll need to check if there's any licensing you'll need as this is a delviery service and also the fact that certain universities and/or their SUs may not approve of it?
    Minds are like parachutes - they only function when open.
    - Thomas Dewar
  • Savvy_Sue
    Savvy_Sue Posts: 47,477 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Another of your biggest issues is going to be the need for a very secure storage and a very secure delivery van.
    Signature removed for peace of mind
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    And the need for upfront capital to buy the stock. You'll need to stock a supply of every drink that potentially could be ordered - or risk losing the custom.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Keep an eye on new government legislation, they want to hike up the cost of alcohol, per unit and restrict access to 'younger' adults.
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