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-   -   Price differences on liquor (http://www.cigarasylum.com/vb/showthread.php?t=40098)

wayner123 12-15-2010 12:11 PM

Price differences on liquor
 
Can someone explain to me why liquor prices vary so widely from state to state? I can understand taxes being higher in some states, but I can't grasp why they would be nearly double the price. IE, Lagavulin 16yr in CT is $50, while even on discount in FL it's $95. That's a major swing just for taxation.

markem 12-15-2010 12:17 PM

Re: Price differences on liquor
 
supply and demand

also, what the market will bear

SvilleKid 12-15-2010 01:09 PM

Re: Price differences on liquor
 
Taxes is the largest difference. However, some states (Like Alabama) require that the liquor comes in first thru the ABC board, then the non-ABC retailers buy it thru the ABC board at the ABC board price. That means everything sold by non-ABC board retailer will be higher than at the state store, so the retailer can make a profit!!! This is also the reason Alabam has such a limited selection of most high-end products. The retailers can only buy what the ABC board has on it's list of purchased items. No going outside the list. Yeah, we're f'ed to the max! That's why 90% of the liquor I have was purchased out of this state. Allows me a greater selection, and in almost all cases, cheaper prices.

awsmith4 12-15-2010 01:14 PM

Re: Price differences on liquor
 
Distributors often set the prices of liquor. In Florida (and GA and many others) there is a three tier system, meaning Manufacturer - Distributor - Retailer. In some place the manufacturer can sell directly to retail. Many times the distributors set the price. I would however expect alcohol like tobacco has high state taxes that may be avoided when purchasing across state lines, which would mean the responsibility to pay tax is on the purchaser. Also in addition to supply and demand there is the possibility of the company either buying in such bulk they can offer a lower price or they are cutting their profit margin in hopes of a larger volume of sales (ie Total Wine).

ninjavanish 12-15-2010 01:15 PM

Re: Price differences on liquor
 
Being a fan of the demon liqour... I have cultivated relationships with quite a few proprietors of liqour stores in multiple states across the US.

It is definitely the taxes.

Take a $30 bottle.

$15 is the wholesale cost to the retailer.

Tack on $10 for state tax

An additional $2 for local tax

And the extra $3 leftover is what the store gets to keep...

Once they recoup their overhead (labor, bills, etc) out of that $3...

The rest is profit... if you can call such a measly share as such.

This varies from state to state... but be assured... you are paying taces upon taxes upon taxes.

Bill86 12-15-2010 01:18 PM

Re: Price differences on liquor
 
Also it really depends where the liquor store is at, big city the prices SHOULD be cheaper. small town 20-25 miles away you'll pay $5 more per bottle and after $50 it increases to a good $8-$10. Call it 15-20% more. At least that's how it is for me.

tobii3 12-15-2010 02:21 PM

Re: Price differences on liquor
 
okay, ONE advantage of being in the Armed Forces....

:noon

wayner123 12-15-2010 02:23 PM

Re: Price differences on liquor
 
I realize that there are sometimes a multitude of taxes, but I just can't understand almost a 100% increase in them. The example I used is from Total Wine in FL. They sell Lagavulin for $95 while a smaller company in CT sells it for $50. That's nuts to me.

And to top it off, most of the time you can't order liquor over state lines. I didn't want this to turn into a rant, but I guess it has. With that large of an increase, it greatly hinders my trying out new Scotches. :(

markem 12-15-2010 02:40 PM

Re: Price differences on liquor
 
Quote:

Originally Posted by wayner123 (Post 1095201)
I realize that there are sometimes a multitude of taxes, but I just can't understand almost a 100% increase in them. The example I used is from Total Wine in FL. They sell Lagavulin for $95 while a smaller company in CT sells it for $50. That's nuts to me.

And to top it off, most of the time you can't order liquor over state lines. I didn't want this to turn into a rant, but I guess it has. With that large of an increase, it greatly hinders my trying out new Scotches. :(

dandm.com says that they can ship to you and have a work around in case you live some place they can't. Info is here:

http://www.dandm.com/shipping_info.php

tobii3 12-15-2010 02:57 PM

Re: Price differences on liquor
 
did a "Quiggle" (Quick Google) for Lag 16 around me...

Prices ranged from $53.87 to $99.95.

No kidding.

$53.87

$99.95

I'll check Class VI on the way home Wayner

awsmith4 12-15-2010 03:02 PM

Re: Price differences on liquor
 
Around here Balvenie 12 ranges from $32 - $60. At first I thought it was just Total Wine undercutting the competition but have seen the low price at other stores that are not impacted by TW's competition so I have decided the higher priced retailers don't move nearly as much quantity and therefore need higher profit margins.

mosesbotbol 12-15-2010 03:06 PM

Re: Price differences on liquor
 
Quote:

Originally Posted by SvilleKid (Post 1095140)
Taxes is the largest difference. However, some states (Like Alabama) require that the liquor comes in first thru the ABC board, then the non-ABC retailers buy it thru the ABC board at the ABC board price. That means everything sold by non-ABC board retailer will be higher than at the state store, so the retailer can make a profit!!! This is also the reason Alabama has such a limited selection of most high-end products. The retailers can only buy what the ABC board has on it's list of purchased items. No going outside the list. Yeah, we're f'ed to the max! That's why 90% of the liquor I have was purchased out of this state. Allows me a greater selection, and in almost all cases, cheaper prices.

Yup. Taxes are a b.i.t.c.h and puritanical laws that relate back to Prohibition are just ways for government to take more out of our pockets & force a moralty that law makers themelves do not abide by.

mosesbotbol 12-15-2010 03:08 PM

Re: Price differences on liquor
 
Quote:

Originally Posted by tobii3 (Post 1095198)
okay, ONE advantage of being in the Armed Forces....

:noon

Yup, next best is living in NY, NJ, MA or RI for retail.

T.G 12-15-2010 03:11 PM

Re: Price differences on liquor
 
Quote:

Originally Posted by markem (Post 1095221)
dandm.com says that they can ship to you and have a work around in case you live some place they can't. Info is here:

http://www.dandm.com/shipping_info.php

It says that the company providing the workaround won't ship distilled spirits, just wine. And it looks like it's only in case lots too - although it sounds as if you can do mixed cases. I would personally get the Bobarian stamp of approval on that "workaround" company before doing business with them, as they might be great, but I wouldn't know what to look for to determine good from bad, and I wouldn't want to have a case of wine sent to a warehousing facility such as the one offered, then have them ship it to me only to have it snagged up in paperwork, lost or damaged. :2

TheRiddick 12-15-2010 03:32 PM

Re: Price differences on liquor
 
Prices, for the most part, have everything to do with the 3-Tier system at work plus various other "incentives" distributors do, often times illegal (per ABC rules), but ignored by ABC for the most part. For example, if a distributor wants to move some specific product in a specific market he will offer the product at his price driving the eventual retail price down. Or, say, some retail shop wants to order X cases of Product A, but the only way he is able to order is by buying Y cases of Product B for each case of Product A on order. Yes, highly illegal by ABC rules, but everyone plays the game as if "I didn't see it happen". In cases such as this, whatever the "required" allocation of add-on product a retailer gets often times ends up on the floor at their cost just to move it ASAP and recoup the money they owe to the distributor in 30 days' time (for a product they didn't even want and were forced to take).

There are other "sales techniques" used in the wine/alcohol/beer business that create such huge differences in prices. 3-Tier system only benefits the distributors and often "punishes" consumers by either higher prices or limited (or no) availability in specific markets.

bobarian 12-15-2010 05:28 PM

Re: Price differences on liquor
 
Quote:

Originally Posted by wayner123 (Post 1095080)
Can someone explain to me why liquor prices vary so widely from state to state? I can understand taxes being higher in some states, but I can't grasp why they would be nearly double the price. IE, Lagavulin 16yr in CT is $50, while even on discount in FL it's $95. That's a major swing just for taxation.

With the repeal of the 18th Amendment(Prohibition), the 21st Amendment allowed each state to set its own laws regarding alcohol. 50 states=50 different laws and 50 different tax rates.

When you buy alcohol from another state via a website you bypass your home state's tax laws. In Fl the tax rate on distilled spirits can run as much as $10/gallon, in addition distributors and retailers must pay license fees to sell liquor to FL residents. Out of state dealers for the most part do not pay these fees, nor do they pay Sales tax which must be paid by in-state retailers. You will find similar pricing differences in cigarettes.

GWN 05-26-2011 07:13 PM

Re: Price differences on liquor
 
Up here it's simply taxation. Was in PA last weekend and saw a bottle of MacCallan 18 for $130. It retails here for $299. Consider yourselves lucky.

mosesbotbol 05-27-2011 06:09 AM

Re: Price differences on liquor
 
Quote:

Originally Posted by GWN (Post 1275846)
Up here it's simply taxation. Was in PA last weekend and saw a bottle of MacCallan 18 for $130. It retails here for $299. Consider yourselves lucky.

In Quebec, the SAQ "sack" it to the consumers. :sl

OLS 05-27-2011 07:27 AM

Re: Price differences on liquor
 
Yeah?? Well I was up in CANADA last weekend, and this guy was getting open heart surgery for Free!
Here it costs $27,500. :r

T.G 05-27-2011 08:25 AM

Re: Price differences on liquor
 
Quote:

Originally Posted by OLS (Post 1276511)
Yeah?? Well I was up in CANADA last weekend, and this guy was getting open heart surgery for Free!
Here it costs $27,500. :r

:r:r:r


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