Private Liquor and Alcohol Stores Will Have Competitive Prices, Business School 101
8/11/2011
HARRISBURG – In response to testimony from individuals intent on keeping Pennsylvania in the post-Prohibition era by keeping the status quo State Store system in place, House Majority Leader Mike Turzai (R-Allegheny County) said prices in private-run wine and liquor stores would be competitive, or go out of business.

“Pennsylvania needs to get out of the liquor-selling business,” Turzai said. “From storing bottles in tractor trailers in 100 degree heat, to spending more than $60 million on a failed inventory data system, to the Kiosk debacle are proof of the systemic problems of a government agency trying to act like a business. Only a business can act like a business and be successful.”

Pennsylvania has the second highest taxes in the country and loses retail business to border states because of high pricing, poor selection and inferior customer service.

Private retailers will tighten their margins on all the popular brands to drive traffic into their stores. That is what the free market does when there is free enterprise competition as opposed to a monopoly.

Wholesalers will also price their brands more competitively because they will be competing with programs from other wholesalers to drive sales of their brands and more volume in a competitive marketplace. The wholesalers and retailers will also seek to compete with the sales that are being lost to aggressive retailers over the border to grow their sales in Pennsylvania.

“If anyone, whether the members of the House Liquor Control Committee, or the current PA Liquor Control Board has issue with the proposed gallonage tax, change the tax structure,” Turzai said. “This is about opening up new businesses and creating new job opportunities around the state.”

Contact: Stephen Miskin
smiskin@pahousegop.com                                                                                                     
717.705.1852

Twitter: www.Twitter.com/SAM1963

 

 

State Representative Mike Turzai
PAHouseGOP.com

RepTurzai.com
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