Alright own up to it!

[FineMaterial]

The state store system generates an annual profit of around 100 million dollars. The only reason the state store system hasn't been kicked to the curb is because there has not been a satisfactory proposal put on the table that has a privatized liquor system generating as much state revenue as the current system.

Maybe, but the other "only" reason is patronage. State store employees are state employees, and the jobs are given out by the local politicians. It would be a huge loss of power for those politicians.
Even notice that state store employees look like toll collectors on highways (old and bored)? They are products of the same system.

 

[El-Jefe]

The state store system generates an annual profit of around 100 million dollars. The only reason the state store system hasn't been kicked to the curb is because there has not been a satisfactory proposal put on the table that has a privatized liquor system generating as much state revenue as the current system.

Don't fool yourself -- that's a major reason but not the only one. Harrisburg isn't giving up its power voluntarily. If they have to cheat to keep it, won't be the first or last time.

If the state store system were in the red, Harrisburg would employ Government Accounting practices to artificially appear profitable -- by shifting expenses elsewhere. (For example: wages, benefits, advertising, building operating costs, and vehicle maintenance could all be moved into larger cost pools.)

 

[dpd926]

There is a distillery in Grove City, PA (home of Wes Phipps!) - about 5 minutes off I79 or I80 - that sells bottles. Their vodka is as smooth as Grey Goose but only costs $20 per bottle. One of the owners is a wrestler, too - even has the ears to prove it! As others in western PA were trying to find out who was making runs to OH or WV, I've been getting my hooch from this place with little drive, little hassle, and no price gouging. Good luck, all - we all need a drink!

 

[Media Fan]

The state store system generates an annual profit of around 100 million dollars. The only reason the state store system hasn't been kicked to the curb is because there has not been a satisfactory proposal put on the table that has a privatized liquor system generating as much state revenue as the current system.

So the 33 states that don’t have liquor monopolies are dumb asses, not taking advantage of the government geniuses in the commonwealth. What rubbish “ not been a satisfactory proposal.” Even the great left in California has abandoned a system designed during temperance.
Sales tax in Pa. is 6%. Simply divide 100 million ( assuming your number is remotely correct) by 6%. You get 1.6 billion in revenue. There are something like 8 million adults in Pa. .
Oh by the way, “ satisfactory” to whom.
And while I am at it, why do I as a 60 year old man have to provide identification at grocery stores to buy a 6 pack of beer ( have not done that in several months, so the geniuses in politics may have come up with a “ satisfactory proposal” to eliminate that insanity.
Pa. Is a farce. Rah, rah.

 

[a_mshaffer]

So the 33 states that don’t have liquor monopolies are dumb asses, not taking advantage of the government geniuses in the commonwealth. What rubbish “ not been a satisfactory proposal.” Even the great left in California has abandoned a system designed during temperance.
Sales tax in Pa. is 6%. Simply divide 100 million ( assuming your number is remotely correct) by 6%. You get 1.6 billion in revenue. There are something like 8 million adults in Pa. .
Oh by the way, “ satisfactory” to whom.
And while I am at it, why do I as a 60 year old man have to provide identification at grocery stores to buy a 6 pack of beer ( have not done that in several months, so the geniuses in politics may have come up with a “ satisfactory proposal” to eliminate that insanity.
Pa. Is a farce. Rah, rah.

certainly not free enterprise

 

[86PSUPaul]

Sales tax in Pa. is 6%. Simply divide 100 million ( assuming your number is remotely correct) by 6%. You get 1.6 billion in revenue. There are something like 8 million adults in Pa. .

So, assuming my math is correct, 1.6 billion from 8 million adults means an average of $200 per adult per year. Wow, I kill that average!

 

[nitlion6]

Don't fool yourself -- that's a major reason but not the only one. Harrisburg isn't giving up its power voluntarily. If they have to cheat to keep it, won't be the first or last time.

If the state store system were in the red, Harrisburg would employ Government Accounting practices to artificially appear profitable -- by shifting expenses elsewhere. (For example: wages, benefits, advertising, building operating costs, and vehicle maintenance could all be moved into larger cost pools.)

They were sitting on the move just a few years ago. A GOP controlled legislature and Governor, all they had to do was call a vote and pass it forward to the Governor for a signature. GOP legislative leadership would not put it up for a vote.
I know for a fact the reason it wasn't acted upon was because they could not come up with something that was at a minimum, revenue neutral.

 

[matter7172]

So, assuming my math is correct, 1.6 billion from 8 million adults means an average of $200 per adult per year. Wow, I kill that average!

I'm a little confused about the math, though. If they only get $100 million of profit from $1.6 billion in sales, that would mean a return of 6.25%, which seems paltry for a monopoly.

 

[86PSUPaul]

I'm a little confused about the math, though. If they only get $100 million of profit from $1.6 billion in sales, that would mean a return of 6.25%, which seems paltry for a monopoly.

Well that part isn’t my math, I just took Media Fans calculated sales and extended per adult.

but, maybe you can assume that the state’s profit comes from taxes and the markup on the bottles covers labor, real estate costs, etc., plus an extra 0.25%. Now you say that is low for a monopoly, but in the grocery business (closest similarity to this, maybe?) a 1% profit margin for a private run company is normal. For years Weis markets used to make 3% and they were by far the industry leader in profit margin, mostly due to their purchasing skill. And I don’t think they make that any more.
So, for a government run business, making 0.25% versus some of the best in the private sector making 1% seems like a fair trade off to me.

 

[CropDuster507]

We can still buy alcohol in MN. I do a check to make sure every Friday.

 

[El-Jefe]

They were sitting on the move just a few years ago. A GOP controlled legislature and Governor, all they had to do was call a vote and pass it forward to the Governor for a signature. GOP legislative leadership would not put it up for a vote.
I know for a fact the reason it wasn't acted upon was because they could not come up with something that was at a minimum, revenue neutral.

I don't doubt what you're saying, still that's an excuse. Taken at face value, they chose to put government coffers ahead of individual freedom. Not that I'm surprised.

PA GOP has had decades of swings and misses here. Bottom line is that if they really wanted to do it, they would've long ago. They talk a lot but don't back it up.

Usual government rope-a-dope. One party keeps making promises but does nothing. Other party reassures its constituents that they've got their backs. Both parties use the topic for fundraising. Government retains or expands power, and the people get fleeced.

 

[matter7172]

Well that part isn’t my math, I just took Media Fans calculated sales and extended per adult.

but, maybe you can assume that the state’s profit comes from taxes and the markup on the bottles covers labor, real estate costs, etc., plus an extra 0.25%. Now you say that is low for a monopoly, but in the grocery business (closest similarity to this, maybe?) a 1% profit margin for a private run company is normal. For years Weis markets used to make 3% and they were by far the industry leader in profit margin, mostly due to their purchasing skill. And I don’t think they make that any more.
So, for a government run business, making 0.25% versus some of the best in the private sector making 1% seems like a fair trade off to me.

Grocery stores are not even remotely a close similarity. Wine and liquor is controlled by a state-owned monopoly with no competition. Grocery stores are in an industry with intense price competition.

 

[86PSUPaul]

Grocery stores are not even remotely a close similarity. Wine and liquor is controlled by a state-owned monopoly with no competition. Grocery stores are in an industry with intense price competition.

You are probably right, but it is the only area I have experience in. But my point of a bureaucrat run chain versus a chain run for profit still has validity in my opinion.