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Old 06-04-2012, 01:30 AM
 
6,596 posts, read 8,914,401 times
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Washington state Supreme Court upholds voter-approved initiative privatizing liquor sales - The Washington Post

Liquor sticker shock stirs up Washington state drinkers | Reuters

I wonder if the higher prices will be a permanent thing, or if the market will settle down after a while. Either way, it's something I know a lot of people in Pennsylvania have been hoping for. I was somewhat surprised to hear about another state privatizing liquor sales. Just goes to show that it's actually realistic.
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Old 06-04-2012, 02:33 AM
 
Location: Pittsburgh, USA
3,131 posts, read 9,337,289 times
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I don't know why if when you have competition prices will be higher. The gas wars of yester-year are over yet when I see 2 or more stations in the same proximity, they usually offer the same price or within pennies. Maybe west coast is different?
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Old 06-04-2012, 03:32 AM
gg
 
Location: Pittsburgh
26,137 posts, read 25,777,749 times
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Glenlivet 1.75L PA = $79.99
Glenlivet 1.75L FL = $54.99

Maybe they are taxing them to death out there, so they can't lower prices since it is all tax.
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Old 06-04-2012, 03:56 AM
 
68 posts, read 124,112 times
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If I am not mistaking, all states and the federal government impose taxes on beer, wine, and spirits. Some states charge higher taxes than others. In PA, we have a hidden 18% "Johnstown Flood Tax" in addition to the 6% (7% in Allegheny County) sales tax added at the counter.
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Old 06-04-2012, 04:27 AM
 
783 posts, read 2,012,890 times
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It clearly states what is going on:

"The initiative imposed a new fee structure that raises those costs by 27 percent, which will likely be passed on to consumers, said Brian Smith, spokesman for the Washington State Liquor Control Board."

See, there aren't any taxes in liberal washington. There are just "fee structures". This new "fee structure" made the cost of booze skyrocket, so the state sold off the liquor stores, making $$$, then purposely imposed a 27% tax to make even more $$$ off the people. I sure hope the jerks in Harrisburg don't get any crazy ideas like that.

Obviously, if it is done correctly, the price should go down. But, politicians will always try their sleazy tricks. I'm sure some Democrats in Washington are saying "See, we warned you about privatization!!!" Makes me sick.
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Old 06-04-2012, 05:55 AM
 
20,273 posts, read 32,871,363 times
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Quote:
The state's markup on wholesale liquor had been nearly 52 percent. The new private-sector markup could be as high as 72 percent, including newly imposed state fees, [Brian Smith, spokesman for the Washington State Liquor Control Board] said. . . . Already, liquor industry insiders are blaming wholesale distributors - two of which control about 80 percent of the state's liquor products - for the bulk of the price hikes.
Sounds like they have a duopoly at the wholesale level. You won't necessarily get competitive pricing (defined as pricing at marginal cost, including fees/taxes and cost of capital) in such a situation.
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