Originally Posted By: Todd
I think what 4Salt is saying is that there are three components of the total price you pay for your booze...the wholesale price + markup + taxes = total price.

Even if the wholesale price plus markup here in Washington becomes exactly the same as it is in CA, or Timbuktu, it's still going to cost more here because the alcohol tax is so high...going privatized will not necessarily do anything to the price you pay.

Fish on...

Todd


I understand, taxes are taxes, there is nothing to be done about that but there are a few reasons Liquor is cheaper in non-regulated states.

The state does not have to compete for sales so they can retain a consistent markup without fear of driving customers to another store.

Competition drives markup down, many grocery, drug, big box stores will take pennies in profit on a sale item to get people in the door as they know that 90% will buy more than just the sale item when the store sells more than just alcohol.

I am not sure how WA state quantities compare to something like Safeway but I would guess Safeway pulls a pretty hefty quantity discount from distributors allowing for even more savings.