Starting any kind of music festival is going to be a challenge if you aren't sure where to begin or what to do. Thankfully, you can improve your profitability by investing in a high-quality liquor license. You might be surprised at just how beneficial these are for your festival.
Profit Margins For A Music Festival Are Slim
While music festivals can be vastly successful when run properly, they tend to have a pretty slim profit margin. That's because there are many elements that you need to consider and a lot of money that needs to be paid, such as the following:
- Building Fees – Creating any kind of stage will require inspection and fees that you have to pay.
- Equipment Costs – Expect to spend thousands of dollars on various types of music equipment, such as backup amplifiers, microphones, and instruments.
- Band Costs – Finding people to play your festival won't be cheap, as you'll have to pay them.
- Food and Drinks – Keeping your guests entertained will require investing in various types of food and drinks.
All of these costs will quickly add up and make it hard for you to succeed. As a result, you need to find a product that your concertgoers will love. Selling band merchandise is often a great idea but you'll have to split profits with the bands. As a result, it is wise to expand your operation to include fun and exciting elements, such as providing liquor on which you are the only person who will make a profit.
Liquor Licenses For A Festival Are A Great Benefit
One of the best ways that you can improve your music festival profit margin is to invest in a liquor license. These are often available for festivals ala a beer tent but may be a little trickier to get in some scenarios. However, they are a great choice if you plan on a regular music festival because they
- Attract Older Audiences – With a liquor license, you can bring in older individuals who likely have more money to spend on goods.
- Keep People Around – As people drink liquor at your festival, they are less likely to leave because they are intoxicated.
- Improve People's Moods – Many people have a better time listening to music if they can have a little bit of beer.
- Increase Possible Profits – As you sell liquor at your festival, your potential profits will skyrocket.
These are just a few of the reasons that so many music festivals fight to have a liquor license. If you are uncertain of where to start in obtaining yours, it is important to talk to local or state authorities about the requirements and the application procedure. It is best to do this right away because there may be waiting lists for people applying for a liquor license.
For more information about applying for a liquor license, contact a company like Arizona Liquor Industry Consultants.