Expert: Eric Hofer - 5/15/2011

Question
Hi. I looked over the PLCB website and was not sure if I was understanding the information. I bought a commercial building on a main street as an investment. It dawned on me that there were not any beverage distributors in our immediate area (though there are several bars) and thought it may be a good business for the location. So my question to you is.....In order to obtain a license to sell beer in Pa am I to search out a licensed individual and offer to buy his or her license? If so... How is a person to locate these individuals and at what general costs are these licenses purchased? Thank You!

Answer
Matthew,

To your direct questions, my take is you can apply for a license directly - unless you're looking to take over somebody's clientel, knowledge or location, I do not see the business sense.  But, you're there on the front line - tell me what I'm missing.

Next, you talk about bars existing but no distributors.  How?  In your research of the existing bars, did you conclude they'd switch to you as a distributor from their existing (far away) suppliers?  If you set up, are you sure you're going to get enough trade to stay in business?  Have you taken into account that if threatened, the existing distributors will undercut you?

Finally, you talk about the location being "Main Street." Is that appropriate for a warehouse?  Isn't main street usually the shopping and office area of a city where most traders keep minimal stock as the floorspace is too dear?  

If I'm right, how would it pay to set up a distributor in such a location?

Or are you talking about setting up a bar?