Free: Contests & Raffles.
Have any of you ever been to a costco that sells liquor? They have a very small selection and their prices aren't much better. Costco is willing to throw $11 million (so far) at this. Do you think they are going to sit there and pass on a 25% (the diffference in the numbers bigtex posted, which I know are accurate) savings to the consumer? Why wouldn't they increase their prices to eliminate that gap and drive up the bottom line? If they have thrown this much money at it, they obviously see how much they stand to profit from it. Also, I doubt costco will need to hire a bunch of the laid off employees to make up for the increased business. I will be voting no.
Quote from: Antlershed on October 18, 2011, 07:07:11 AMHave any of you ever been to a costco that sells liquor? They have a very small selection and their prices aren't much better. Costco is willing to throw $11 million (so far) at this. Do you think they are going to sit there and pass on a 25% (the diffference in the numbers bigtex posted, which I know are accurate) savings to the consumer? Why wouldn't they increase their prices to eliminate that gap and drive up the bottom line? If they have thrown this much money at it, they obviously see how much they stand to profit from it. Also, I doubt costco will need to hire a bunch of the laid off employees to make up for the increased business. I will be voting no.I've never bought liquor at a COSTCO in WA, so I have no idea what the difference will be. One thing I do know is that having competition will dictate how much profit a company can build into pricing. As we have it now, there is no competition, so 25% is the norm. I don't believe that will be the same once there is fair market competition. If COSTCO isn't competitive, they won't sell booze. We will have a choice of where to go for booze, instead of no choices at all.
Usually, private sector is more efficient for markets than Government/union control. Perhaps, once the State can not control the monopoly on the "sale" they will focus on enforcement and tax for revenue. (Which is what they should have always done. )
Quote from: Wenatcheejay on October 18, 2011, 08:31:01 AMUsually, private sector is more efficient for markets than Government/union control. Perhaps, once the State can not control the monopoly on the "sale" they will focus on enforcement and tax for revenue. (Which is what they should have always done. )So would you be ok with the state increasing the liquor tax to make up for lost revenue?
Quote from: pianoman9701 on October 18, 2011, 08:00:25 AMQuote from: Antlershed on October 18, 2011, 07:07:11 AMHave any of you ever been to a costco that sells liquor? They have a very small selection and their prices aren't much better. Costco is willing to throw $11 million (so far) at this. Do you think they are going to sit there and pass on a 25% (the diffference in the numbers bigtex posted, which I know are accurate) savings to the consumer? Why wouldn't they increase their prices to eliminate that gap and drive up the bottom line? If they have thrown this much money at it, they obviously see how much they stand to profit from it. Also, I doubt costco will need to hire a bunch of the laid off employees to make up for the increased business. I will be voting no.I've never bought liquor at a COSTCO in WA, so I have no idea what the difference will be. One thing I do know is that having competition will dictate how much profit a company can build into pricing. As we have it now, there is no competition, so 25% is the norm. I don't believe that will be the same once there is fair market competition. If COSTCO isn't competitive, they won't sell booze. We will have a choice of where to go for booze, instead of no choices at all.And when the city of Vancouver loses the $2 million per year that it received in 2011 from the sale of liquor, what do you suppose will be used to fill that gap? I doubt Costco will be handing that over...
My phone won't let me quote the long posts for some reason, but I will try to address them.The 25% markup covers more than just the cost of doing business.The chunk of money that went to Vancouver is a mix of taxes and revenue above and beyond expenses. So, while it isn't fair to assume they will lose all $2M, you can't assume they won't take a hit at all.For 4th quarter of SFY2011, $140.6M was distributed to the General Fund, Local Governments, UW, WSU, WSP, and a couple other programs. Of that $140.6M, $27.8M was excess funds (non-dedicated revenue after expenses). So, if we apply that to the entire year, that is $111M that the state will no longer be receiving through the sale of liquor. $71M goes to the cities and counties annually, so even cutting them completely out won't close the gap. Thinking they will make up $111M in taxes without a tax increase would mean that the border-hoppers would have to spend another $400M on liquor in WA State annually (using the proposed 27% tax rate). So, please, tell me again how there is going to be more revenue for the state...?