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Is the ABC store in Alabama the cheapest place for liquor in the state?
Posted on 5/13/14 at 6:40 am
Posted on 5/13/14 at 6:40 am
New to bama. Being from Louisiana where every place sells alcohol, I'm trying to understand the lay of the land. Is the ABC store always going to have the best/ lowest prices on alcohol?
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Posted on 5/13/14 at 6:45 am to Fishwater
Yes.
All the package stores buy their liquor from the ABC stores and mark them up.
All the package stores buy their liquor from the ABC stores and mark them up.
Posted on 5/13/14 at 6:46 am to Fishwater
Yes, and it will still be more expensive than Louisiana unfortunately.
Posted on 5/13/14 at 6:52 am to The Spleen
quote:
Yes.
All the package stores buy their liquor from the ABC stores and mark them up.
Didn't know this. Thanks.
Posted on 5/13/14 at 6:53 am to Fishwater
Yes and buying liquor in Alabama blows compared to basically anywhere.
Posted on 5/13/14 at 6:54 am to Fishwater
Yep and there is a 20-25% mark up on liquor at ABC stores and even more at package stores.
Posted on 5/13/14 at 7:29 am to mwlewis
Where does the profit from the ABC store go?
Posted on 5/13/14 at 7:33 am to The Spleen
quote:
Yes.
All the package stores buy their liquor from the ABC stores and mark them up.
Yup, Everyone has to buy their liquor from ABC. The Bars, Package Stores, Etc... You get a case discount of 1 bottle or 10%, I forget which. The package stores are their primarily for the hopes that the liquor laws will be repealed eventually and convenience.
Posted on 5/13/14 at 8:09 am to The Spleen
quote:
Yes.
All the package stores buy their liquor from the ABC stores and mark them up.
truth. Unfortunately the state of Alabama gets their cut of liqueur up front by selling it to all the stores and bars themselves.
Posted on 5/13/14 at 8:22 am to Person of interest
quote:
Where does the profit from the ABC store go?
The government.
Posted on 5/13/14 at 8:29 am to The Spleen
It's time to get big government out of liquor sales.
Posted on 5/13/14 at 8:58 am to Duke
we need the revenue
Posted on 5/13/14 at 9:08 am to CheeseburgerEddie
Casinos and lottery??
Posted on 5/13/14 at 9:10 am to Person of interest
quote:
Where does the profit from the ABC store go?
It goes to the state general fund budget. I tried to find something showing how much the stores generate, but the reports all appear to lump store profits and taxes generated from other retail sales together.
Most every legislative session, there's an attempt to get the state out of the retail liquor business but it has never passed. It should. The gross revenue might drop, but the net would probably go up when you eliminated the overhead of all the employees and upkeep on store locations.
Posted on 5/13/14 at 9:12 am to CheeseburgerEddie
quote:
we need the revenue
You'd still have the revenue without the overhead of employee salaries + benefits and store upkeep.
ABC knows how much they sell. If there would be a predicted drop in net (which I seriously doubt), the legislature could raise the tax rate to cover the difference as part of the process.
This post was edited on 5/13/14 at 9:13 am
Posted on 5/13/14 at 9:14 am to JustGetItRight
so we get taxes raised AND have to pay more for booze just so the state isn't involved in it.
Why do you think there wouldn't be a drop in net? Do you really think they have been operating at a loss forever?
Why do you think there wouldn't be a drop in net? Do you really think they have been operating at a loss forever?
Posted on 5/13/14 at 9:16 am to JustGetItRight
Sounds like you need to take a basic economics course 
Posted on 5/13/14 at 9:20 am to CheeseburgerEddie
quote:
so we get taxes raised AND have to pay more for booze just so the state isn't involved in it.
No, the theory is the package stores would be able to lower their prices on liquor because the middle man(ABC) would be removed. They could buy direct from the distributors rather than the ABC stores.
That's the theory at least. I have my doubts the package stores would lower their prices that much, if at all.
Posted on 5/13/14 at 9:51 am to CheeseburgerEddie
quote:
so we get taxes raised AND have to pay more for booze just so the state isn't involved in it.
Why do you think there wouldn't be a drop in net? Do you really think they have been operating at a loss forever?
You wouldn't see the tax increase because retailers wouldn't be paying as much for the product.
ABC isn't selling to retailers at a loss. Eliminating their markup should balance out any tax increase (should one even be needed).
There's no need to think about anything. The numbers are easy to find.
AL.com story about the most recent effort to get the state out of the booze business.
ABC 2011 annual report that gives their financial information.
Yes the stores make money but not as much as you might think. They operate roughly 170 stores. In 2011 they reported a net profit for distribution of just under $9 million - an average of $52,000 a store. That $9mil was on $387mil of sales ($252mil of that retail). The real revenue comes from beer and wine taxes. During the same period, those generated $60 million.
In a nutshell, the state spends a whole lot of money for a comparatively small return. Moving to a tax-only model should see more money for the state at a lower cost to the consumer.
Posted on 5/13/14 at 9:53 am to GeorgeReymond
quote:
Sounds like you need to take a basic economics course
No, I think I've got a pretty firm handle on economics. Particularly when it comes to efficiencies of government vs private industry in the retail marketplace.
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