Price differences on liquor

wayner123 · 12-15-2010, 11:11 AM

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, 11:17 AM

supply and demand

also, what the market will bear

SvilleKid · 12-15-2010, 12:09 PM

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, 12:14 PM

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, 12:15 PM

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, 12:18 PM

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.

12-15-2010, 01:21 PM

okay, ONE advantage of being in the Armed Forces....

wayner123 · 12-15-2010, 01:23 PM

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, 01:40 PM

Quote:

Originally Posted by wayner123

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

12-15-2010, 01:57 PM

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, 02:02 PM

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, 02:06 PM

Quote:

Originally Posted by SvilleKid

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, 02:08 PM

Quote:

Originally Posted by tobii3

okay, ONE advantage of being in the Armed Forces....

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

T.G · 12-15-2010, 02:11 PM

Quote:

Originally Posted by markem

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.

TheRiddick · 12-15-2010, 02:32 PM

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, 04:28 PM

Quote:

Originally Posted by wayner123

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, 06:13 PM

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, 05:09 AM

Quote:

Originally Posted by GWN

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.

OLS · 05-27-2011, 06:27 AM

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

T.G · 05-27-2011, 07:25 AM

Quote:

Originally Posted by OLS

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

12-15-2010, 11:11 AM	#1
wayner123 Country Gentleman Join Date: Oct 2008 Location: Deltona, FL Posts: 2,351 Trading: (159)	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. __________________ 'It is an honor for a man to keep aloof from strife; But every fool will be quarrelling.'

12-15-2010, 11:17 AM	#2
markem Bunion Join Date: Oct 2008 First Name: Mark Location: Second Star on the Right Posts: 22,653 Trading: (47)	Re: Price differences on liquor supply and demand also, what the market will bear __________________ I refuse to belong to any organization that would have me as a member. ~ Groucho Marx

12-15-2010, 12:09 PM	#3
SvilleKid Yes I am a Pirate Join Date: Oct 2008 Location: 33°46′08″N 86°28′16″W / 33.76895°N 86.471037°W Posts: 2,776 Trading: (52)	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. __________________ Ceilin' fan it stirs the air, Cigar smoke does swirl. The fragrance on the pillow case, and he thinks about the girl. Thanks, JB, 1975.

12-15-2010, 12:14 PM	#4
awsmith4 Simple Pleasures - 2oL Join Date: Oct 2008 First Name: Albert Location: Marietta, Georgia Posts: 4,602 Trading: (111)	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). __________________ Its THIS easy to support our troops

12-15-2010, 12:15 PM	#5
ninjavanish Feeling at Home Join Date: Aug 2010 Location: Trust me, your humi isn't big enough. Posts: 507 Trading: (16)	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.

12-15-2010, 12:18 PM	#6
Bill86 Snob Join Date: Jul 2010 First Name: Bill Posts: 6,704 Trading: (67)	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.

12-15-2010, 01:21 PM	#7
tobii3 Guest Posts: n/a	Re: Price differences on liquor okay, ONE advantage of being in the Armed Forces....

12-15-2010, 01:23 PM	#8
wayner123 Country Gentleman Join Date: Oct 2008 Location: Deltona, FL Posts: 2,351 Trading: (159)	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. __________________ 'It is an honor for a man to keep aloof from strife; But every fool will be quarrelling.'

12-15-2010, 01:57 PM	#10
tobii3 Guest Posts: n/a	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

12-15-2010, 02:02 PM	#11
awsmith4 Simple Pleasures - 2oL Join Date: Oct 2008 First Name: Albert Location: Marietta, Georgia Posts: 4,602 Trading: (111)	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. __________________ Its THIS easy to support our troops

12-15-2010, 02:32 PM	#15
TheRiddick Non-believer Join Date: Jan 2009 First Name: Greg Location: Las Vegas Posts: 943 Trading: (7)	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.

05-26-2011, 06:13 PM	#17
GWN Snow City Join Date: Oct 2008 First Name: Jeff Location: Barrie, Ontario Posts: 898 Trading: (10)	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. __________________

05-27-2011, 06:27 AM	#19
OLS Suck It Join Date: Oct 2008 First Name: Brad Location: TN Posts: 7,912 Trading: (19)	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.