Beer Trading Shop(s)

Discussion in 'Trade Talk' started by harrington_ptj, Feb 24, 2014.

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  1. harrington_ptj

    harrington_ptj Initiate (0) Jul 11, 2013 Connecticut

    I have been thinking about the possibility of opening "Beer Trading Stores." Essentially shops with multiple locations around the country that would allow customers to come in and trade local beers for some kind of credits and shop beers from other regions around the country, that would be available at another location.

    For example - someone in VT has some Hills Farmstead the would like to trade for some Pliny, they would take their HFS to their "local" trading store, recieve a credit, and be able to browse inventory of the store in CA, place an order with their credits and the beer would be shipped from store to store for them to pick up.

    There are a few different ways to make it profitable, but I am trying to get a handle on whether anything like this would be legal?

    I know there are issues with shipping alcohol but this would be transferring from one store location to another so I think there are ways around it. My biggest concern is whether or not there is a legal way to obtain the beer from the customer.

    Just think - no more newspaper and bubble wrapped beers and lying to UPS! I would appreciate any feedback and legal advice anyone can offer....
     
  2. PSU_Mike

    PSU_Mike Initiate (0) Sep 6, 2013 Pennsylvania

    I don't think the market is large enough for you to make a profit on it. At least not right now anyway.
     
    jrnyc likes this.
  3. teledeluxe

    teledeluxe Initiate (0) Nov 21, 2013 Illinois

    Not totally sure it'd even be legal. Not from the shipping angle. From the random guy on the street "selling" the beer to the store.
     
    youbrewidrink likes this.
  4. kylelenk

    kylelenk Initiate (0) Apr 17, 2012 Michigan

    My assumption is if you were keeping any inventory, that would still be retailing. Most states prohibit retailing of alcohol unless it comes through a distributor. At the end of the day, the taxman will want a cut and that's where you'll hit the issues.
     
  5. Rekrule

    Rekrule Initiate (0) Nov 11, 2011 Massachusetts

    The percentage of people who love craft is pretty small. The percentage of people who trade is even smaller. The percentage of people who would trust a 3rd party to trade for them has to be almost nil.
     
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  6. harrington_ptj

    harrington_ptj Initiate (0) Jul 11, 2013 Connecticut

    I agree - I think that would be the big hurtle. I think a way around it would be the "credits" instead of money. It's almost similar to selling wine through an auction house (which people do I guess). I don't know the ins and outs of it. Hence the shot in the dark post! :grinning:
     
  7. rozzom

    rozzom Pooh-Bah (2,620) Jan 22, 2011 New York
    Pooh-Bah Trader

    Cool idea, but yeah in my non-professional opinion, probably lots of legal obstacles here
     
  8. mizary

    mizary Initiate (0) Oct 25, 2007 Ohio

    Yeah I think a beer trading store would have to be private... But I'd love to see more large public organized bottle swaps.

    I just had a similar idea... what about a beer co-op?

    I know there are brewery co-ops... But what about a beer store owned by a large group of beer geeks. I'd be happy to work a 4-6hrs a week in exchange for being able to buy at cost. It would be open to the general public too, but they pay the normal markup. If we have profits over operating costs we donate them.

    Maybe partner with a homebrew shop and rent part of their space.
     
  9. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    You are askng in the wrong place. You need a lawyer in each of the states where you intend to do business.
     
  10. 4DAloveofSTOUT

    4DAloveofSTOUT Grand Pooh-Bah (4,064) Nov 28, 2008 Illinois
    Pooh-Bah Trader

    I think you would have a hard time making a profit.
     
  11. harrington_ptj

    harrington_ptj Initiate (0) Jul 11, 2013 Connecticut

    I was also thinking that it could be part of a network of liquor stores. Kind of like a Gamestop where you can get new or preowned...
     
  12. paulys55

    paulys55 Initiate (0) Aug 2, 2010 Pennsylvania

    I think to make this profitable for you would make the trading part for your customers even more expensive than it already is. I like the idea but between the legal hurdles and niche market it will be tough to make happen
    BTW, you said "hurtle":grinning:

    I would love to see the show they make about this though....spinoff of Pawn Stars, lol.
     
  13. LambicPentameter

    LambicPentameter Initiate (0) Aug 29, 2012 Nebraska

    There are only two ways in which the beer traders store could acquire inventory, from a logistical standpoint. This is before any part of the legality is even broached:

    1) Branch in California buys CA-local beers from a CA distributor, the same way every other retailer in CA gets their inventory.

    2) Branch in California buys beers directly from other consumers who want to get credit for something from a non-CA branch of the trading store.

    But getting into the legality, Method #2 is clearly out of the question, as I'm unaware of any state in the country that allows a retailer to purchase inventory directly from a private individual.

    Method #1 sounds like it's more feasible, since in theory you're just moving inventory at Store-CA to Store-VT, but I'm pretty sure that retailers--even ones that have multiple locations under the same ownership--aren't allowed to ship inventory from one branch to another, because it technically becomes distribution. And the "three tier" system forbids retailers from distributing. Just look at Total Wine--they have locations all across the country, but I don't think you could walk into a TW in California and try to purchase something that might be in stock in New York.
     
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  14. Providence

    Providence Pooh-Bah (2,652) Feb 24, 2010 Rhode Island
    Pooh-Bah Trader

    Interesting idea but I can't help but wonder why people would trade through such stores when they can just trade via this (and probably other) websites, without having to pay all sorts of additional people in the middle?
     
  15. harrington_ptj

    harrington_ptj Initiate (0) Jul 11, 2013 Connecticut

    I tend to agree - if you could do it, someone with a footprint as big as Total Wine would have by now. The whole thought came to me when I was flipping through TV and saw a pawn shop buying wine through a broker on behalf of the customer. Doing some research online seemed to be a dead end
     
  16. Hop-Droppen-Roll

    Hop-Droppen-Roll Initiate (0) Nov 5, 2013 Minnesota

  17. JohnnyMc

    JohnnyMc Pooh-Bah (1,623) Feb 14, 2012 Ohio
    Pooh-Bah

    Sounds like a very cool idea, but as others have mentioned I don't think it would be legal unfortunately.
     
  18. Longstaff

    Longstaff Initiate (0) May 23, 2002 Massachusetts

    Trading is the same as selling in the eyes of the law, either privately or as a business. Each beer "traded" would have to come from a licensed entity.
     
  19. hopsputin

    hopsputin Grand Pooh-Bah (4,403) Apr 1, 2012 New Jersey
    Pooh-Bah

    pretty much agree with this. like the idea though.

    for the credits, who would set the value of a credit? is it just like 1 credit = $1, then $4$?

    seems a little less than legal, but a cool idea anyways
     
  20. Srkolodn

    Srkolodn Savant (1,050) Dec 26, 2013 New York
    Trader

    100% correct.. Craft Beer sales are what, 5% of the beer market.. People who trade beer are what .0002% of that same market. In other words youd probably be struck by lightening before this becomes profitable.
     
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