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Independent Advice an interview with Michael David, Elizabeth Bay Cellars, Sydney
INDEPENDENT ADVICE MICHAEL DAVID
Owner and Operator - Elizabeth Bay Cellars
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AT 82 YEARS OF AGE, MICHAEL DAVID HAS BEEN A LIQUOR RETAILER FOR 53 YEARS.
HE OPENED HIS CURRENT STORE, ELIZABETH BAY CELLARS, IN 1978 AND HAS BUILT IT INTO A LOCAL COMMUNITY LANDMARK. IN MORE THAN HALF A CENTURY, MICHAEL HAS EXPERIENCED AN IMMENSE CHANGE IN LIQUOR RETAILING. WITH ALL HIS WEALTH OF EXPERIENCE, HE SAYS THERE IS ONLY ONE ROUTE TO SUCCESS FOR THE INDEPENDENT. DO YOUR RESEARCH AND KNOW YOUR CUSTOMER.
How did you become a liquor retailer?
By accident; I had the best job working for David’s Holdings when I saw an ad. A fellow wanted to sell a liquor store. It was in a basement at number one Burton Street Darlinghurst, and you had to walk down steps into a dungeon. I bought the shop on 14th February 1966 - Decimal Conversion Day. By the end of the first year, we had turned over an enormous amount of alcohol. The following year I bought from the same fellow, his Rushcutters Bay shop in 1967 and then in 1969 I bought a building in Oxford Street.
When you took the licence over in Burton Street, how many off-premise liquor licences were there in Sydney?
Very few, there was one straight liquor store that was Jarman’s* at Edgecliff and a few others but other than the Italian importers at the markets who had bulk wine from Griffith and would fill up jugs, there was virtually no liquor stores as we know it. Melbourne had liquor stores, so a few of us would go down every couple of months. We became good friends with retailers there and became helpful to each other. If there were a beer strike in Melbourne, for instance, we would send them beer. If it were here we would send it up. If a supplier cut a retailer off for discounting, we would send them the product.
Tell us the story behind you and Liquorland
In 1972 I registered the name Liquorland, and I had several shops called Liquorland. Jack Jarman said a few of the guys are going to get a group together called the Big Ten or the Big Twelve, would you be in it? We ended up calling the stores Liquorland. In October 1980 Coles came to me and said we want to buy you out and that’s when they took it over.
I got a lot of my friends into it, so when Coles did make the offer, they all came out of it very well.
Tell us about when you first started Elizabeth Bay Cellars.
We used to get a lot of deliveries, and I had a spare licence. I asked the landlord if I could take over the premise next to the grocery. Instead, we filled his grocery store with liquor. The premise where Elizabeth Bay Cellars is today was originally Primo’s restaurant. All the politicians would stay at the Sebel and dine there. Leo Schofield was a regular and Jeffery Smart paintings were on the wall. I still have all the books. When Nick and Rosa sold Primo’s, I bought it. Because you couldn’t move a licence, we extended it through the wall. That was in 1986. Then we dug the cellars out underneath.
How have you seen retail change?
Very much. There isn’t that co-operation that was often between store owners. We once all got on well and helped each other out.
In 1966 there were only 25 people in the Liquor Stores Association (LSA). We would meet once a month at the Royal Automobile Club (RAC) in Macquarie Street. We would have a meeting and then have dinner in that beautiful dining room. It was very civilized, we became friendly, and we worked with people.
There are so many new products people can’t keep up, and I don’t have space. I wish I could double or triple the space. With the range of products now it needs to be huge. Now the supermarkets have taken over.
How do independents compete with the supermarket chains in today’s market?
There was a lot of whining from the independents for years. I was at an Independent Liquor Group (ILG) meeting once, and I got on stage and said who doesn’t have $175 to know their business and improve it? All you have to do is go to the Australian Bureau of Statistics and find out the stats from your area. I know there are 1.6 people in every apartment in
Elizabeth Bay. I know how 92 per cent of them travel to work. I know the percentage of those born overseas. I know the average income. 1.6 people per household mainly living in apartments don’t buy slabs of beer, so we spend a lot of money on refrigeration because they buy six-packs twice a day. That’s all you have to do to survive. Don’t sell to the customer what you want to sell. Sell what they want. And I say to my staff don’t be nice to me. I don’t pay your wages, the customer does.
We know the names of our customers and their dogs. We have a dog water bowl out the front and dog biscuits inside. The dog would drag the customers in; I get some fascinating people here.
What was the golden era of liquor retailing?
As an industry, I think it has gone down. Once I may have received an order way up in Turramurra, and then I would phone the bloke up there. Can you help me out? He would say, sure I can help you out. I couldn’t go to Woolworths and borrow a case of Dom Perignon. At Christmas, they all rush to Dan’s and have trouble getting a park and then have to get in a queue, but they have the marketing budget and the buying power.
What is the secret to your success?
Common sense. The little things are more important than the big things. We know our customers because we know our community.
*In 1966 Single Bottle liquor licences were introduced thanks to the lobbying of Jack Jarman who opened Sydney’s first liquor bottle shop, Jarman Liquor Supplies at 163 New South Head Road Edgecliff. Jarman successfully lobbied influential women’s groups through promoting the family benefit of having dad pick up his liquor on the way home rather than spend the evening in the pub.
