Thursday, December 19, 2013

40 years of…….……nothing.



As you read this I want to remind you that A. Democrats have been in power 21 of the past 40 years and B. Shapp was a Democrat.


This story from 1973 illustrates that after 40 years the Union and PLCB have done almost nothing for the consumer. Let’s take the points one by one.
1.       The union proposed more stores, particularly self-service ones. Self-service stores like we have now were introduced in January of 1969 and 34 years later, or 30 years after this article was written, the last counter store finally closed. There were 750 stores in 1973 - we have 600 now. I would call that a double failure. (For those of you not old enough to remember, Pennsylvania had “Counter Stores” exclusively for the first 35 years after Repeal. You walked up to a front counter, marked a printed list of what you wanted or wrote down the code number, and gave it to the clerk, who then went into the back to get it for you. The last one closed in FY 2003-04.)
2.       Permit credit cards. While the union may have proposed this it was customers, particularly licensees that brought about this change in 1987 - 14 years later and at least 15 if not 20 years after other business of this size did. Certainly a failure at the time.
3.       Provide home delivery for large orders.  I would think that businesses would like delivery too since they place larger orders than most residents but notice how they weren’t mentioned.  A continuation of the PLCB “don’t rock the boat or we’ll screw you” policy still in effect today. In any case there is still no delivery. Another failure.
4.       Adjust markup on items.  You thought this was thought up recently didn’t you? 40 years later still nothing.  I’d call that a failure too.
5.       The union report claims that prices are no higher than in New Jersey.  Sound familiar? After 40 years the citizens still think New Jersey prices are better – mainly because it is true and the over $300 million in border bleed and the building of the outlet stores prove it.*
The fear-mongering hasn’t changed at all. Prices will go up if we raise taxes they say in the last paragraph.  Well DUH.  Don’t raise taxes, increase convenience and sales will go up and revenue will go up, border bleed will go down and everybody, especially the citizens, will be much happier that they don’t have to deal with the state store system. At least the union didn’t come up with “Privatization killed my daddy” in 1973 like they did this year although it was Wendell Young’s father in charge of the union back then.  Some things never change.
(*) For more information on outlet stores read this article

This quote is from the PLCB about the history of the PLCB. "June 3, 2003 - The PLCB opens its first PA Wine & Spirits outlet stores in Gettysburg (now closed), Hermitage and Franklin Mills. The stores, aimed at preventing customers from going out of state to buy alcohol, offer a large selection of products at discounted prices."  

Of course, this begs the question that if PA prices, selection, and service are better than surrounding states as the PLCB and Union claim…….why do we have to prevent people from going out of state?  The parenthetical information is mine.


Do you really want them in charge of "modernization" with a record like this?

Privatization IS modernization. Accept nothing less.

Monday, December 16, 2013

Why can't Johnny read or do math?



For those of us following such things there has been a trend by some union representatives and clerks to spin or play down the amount of drinkers and thus making our voice seem more like a minority and not as important as those who think they are keeping utter chaos and ruination at bay. 

Specifically, they like to use the 13% number as those who drink once a week. However, as with most things math the clerks and the union have their own way of doing things.  What they seem to fail to realize is that the total is cumulative – i.e. you have to add the everyday, the few times a week and the about once a week numbers to see the TOTAL amount of people who drink at least once a week. This number ranges from 30 to 35% depending what time period you look at.   

In fact, Gallup has shown time and time again that 66% of the entire adult population drink some amount of alcohol.  As they reported in August this year “Thirty-five percent report having had a drink in the last 24 hours and another 29% in the past week.” This works out to 64% of drinkers which are about 66% of the population which comes out to over 42% of the total population (.64*.66 = .4224).  This is higher than what is normally reported because of the holiday included in the survey period which means some special occasion drinkers are added in that normally wouldn’t be.

We 2/3rds of Americans who choose to drink are the majority that the state store system wants to control.  They tell us what, they tell us when and they tell us where – the very antitheses of the freedom an open market brings to the citizens.  Taxation, regulation and enforcement are the role of government, not retail sales. The citizens and the state will be far better off once the aberration of the current state store system is corrected. Every state or province that has privatized some or all of their alcohol system has seen an increase in employment in the industry.  It tripled in Washington and Alberta. Increased in Ohio, Iowa, Maine and West Virginia too.

We are not inventing the wheel again.  Take the best of that the majority of the states do, regulate and enforce what they have problems with and come up with the best system.  That is real modernization not putting lipstick on the state store pig with new names or wicker baskets.

Privatization IS Modernization – Accept nothing less.


Provided for historical data (Gallup)

Every
day
A few
times
a week
About
once a
week
Less
than
once
a week
Only on
special
occasions
Never
No
opinion

%
%
%
%
%
%
%
2007 Nov 11-14
7
13
10
9
29
33
*
2006 Nov 9-12
10
13
11
9
27
30
*
2005 Nov 7-10
5
14
11
10
29
31
*
2004 Nov 7-10
7
13
13
10
25
32
*
2003 Nov 3-5
7
16
13
12
25
27
*
2001 Nov 8-11
7
12
13
14
24
30
*
* Less than 0.5%

Tuesday, November 26, 2013

In The Public Interest? What are they thinking?

Contrary to what you may think the PLCB isn't all bad. They, along with 34 Happy Valley establishments have put a major dent in the drunken spree known as State Patty's Day and they tried to curb the drinking at Kutztown by limiting hours although that didn't work. 

However, I really can't figure out why the PLCB has extended the hours of some stores for hunting season. Drinking and driving isn't enough we have to add firearms into the mix too?  They really need to explain how making sure that people with guns have increased access to alcohol, courtesy of the state store system, is in the public interest. (Before you climb on your high horse - yes I am a gun owner.)

http://www.finewineandgoodspirits.com/static/pdf/Extension_of_HolidayHours_2013.pdf

Wednesday, November 13, 2013

Oh PLCB - you got some splainin' to do!


Just like Ricky did with Lucy we Pennsylvanians wonder what the PLCB is doing some if not most of the time.  We hear from the PLCB and the unions that our prices in state are so great but that over $300 million a year is lost in border bleed.  Which makes one wonder if we have such good prices why isn't there a positive cash flow into the state instead of a negative cash flow out of the state? Maybe convenience, selection and service are the deciding factors not price.

Speaking of going out of state to buy liquor we have all heard how Washingtonians are going to Oregon border stores in greater number since privatization to take advantage of cheaper prices.  That is saying something when Oregon has the 2nd highest liquor taxes in the country but would Pennsylvanians also shop in Oregon if they had the chance? According to the Tax Foundation their liquor taxes are 315% of ours.  They are also a control state which means limited hours, selection in store and convenience just like here.  

This story from KNDO NBC 23 out of Yakima, WA shows the inside of an Oregon liquor store and at about 1:15 in the clip you can see some prices of what they have. The signage says these are everyday prices not sale items. I've done a comparison of those prices to PA prices to see how much less expensive we are since our tax rate is so much lower. This is what I found.

Seagram's Gin 1.75L PA $21.99 - OR $18.39 (PA 23% higher)
Seagram's Vodka 1.75 PA $21.99 - OR $17.39 (PA 27% higher)
Kahlua 1.75 PA $42.99 - OR $32.39 (PA 30% higher)
Wolfschmidt Vodka 1.75L PA $14.99 - OR $14.39 (PA 10.7% higher)
Baileys 750ml PA $25.49 - OR $21.99 (PA 21% higher)
Pinnacle Vodka 1.75L $23.99 - OR $21.99 (PA 14% higher)
Smirnoff Vodka 1.75L PA $25.99 - OR $19.99 (PA 29% higher)

Now I know what you are thinking.  Al, your numbers don't work out. Well - they do.  Oregon doesn't charge sales tax so PA prices are an additional 6% higher then just what the listed price differences would indicate.  So how does this state government controlled wholesale operation with 3 times the taxes sell for less?  As the header says, "PLCB - you got some splainin' to do!"