Friday, July 28, 2017

Big PLCB Price Hike May Be Coming!

The PLCB is playing hardball with their suppliers, and it looks like part of the process is threats in the media. Check this out from a recent story at KDKA's CBS Pittsburgh site titled "Prices Of Best-Selling Wines & Spirits To Rise."
The PLCB’s Elizabeth Brassell says the suppliers have been told the price for their product is going to go up on the shelf, “unless our suppliers of those products offer us lower acquisition cost to avoid the retail price increases.”
Brassell says the price increases affect “the best-selling 150 brands of spirits and best-selling 150 brands of wine.” In other words, probably your favorites.
You know what we have to say about that, right? Welcome to Flexible Pricing...we told you so! You know why it's going to affect the 150 best sellers? Because those are the only PLCB products covered by Flexible Pricing! Everything else is still under the mandated markup. 

Here's what the PLCB thinks is going to happen. The PLCB is going to hammer the producers in negotiations! They'll balk at lowering prices, because they know the PLCB isn't going to lower the price on the shelf (because they promised to make a LOT off of this), the PLCB will make this childish "don't make us raise prices!" bid in the press, figuring the producers will lower prices, and then they can say "look, your prices stayed the same, we are HEROES!!" while sucking off all the difference to cover their spiraling operating costs and hold off privatization for another legislative cycle...and the producers will call their bluff, and give 'em nothing.

And the PLCB will just have to raise prices and look like the inexperienced amateurs they are, we'll get screwed, border bleed will explode, and maybe, maybe we'll finally tell our representatives to get rid of this moldy old piece of Prohibitionist crap.
The PLCB Act .39 Special, only one made.
And here's the beauty of it all. If I were the producers... I'd be saying "Screw them. Jack the prices, blame it on them, and maybe Pennsylvania will finally wake up and get rid of these idiots. This is our chance!" Run the long game, booze folks, run the long game, and help us dump these rubes.

Because you know what I'm going to do when the prices go up at the end of August? Hop in the car and go buy booze in Delaware. Why not come along? Let's dump these rubes!


Unknown said...

As a consumer going to another state and buying your booze us technically illegal although I'm sure its done frequently. Ultimately its the restaurant industry will have to absorb these price hikes and pass them along to our guests. Its a backwards system that helps no taxpayer and in the long run the state would make more revenue on increased consumption. You can already see the progress in the popularity of select grocery store chains in Philadelphia offering beer and wine. In the long run it only makes sense to allow businesses who's main drivers are to negotiate with the suppliers to attain the best pricing to run a better business than their competitors. A monopoly state run institution is a wasteful drain of both dollars and human resources the state could put to better use.

Albert Brooks said...

All you have to do now is find some Democrats and beat what you just said into them and we'll be fine.