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Old 12-15-2010, 02:32 PM   #15
TheRiddick
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Default 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.
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