Get ready to pay more at the liquor store.
Starting Monday, the PLCB raised prices of about a dollar on 420 items. That’s less than 5% of the 10,000 items they offer. This change is tied to the passage of Act 39, which gives the PLCB the ability to negotiate prices. It could be good news for local wineries who hope it sends customers their way.
Here are specific details sent to WTAJ by the PLCB Director of Communications, Elizabeth Brassell.
Prior to Act 39 of 2016 – which gave the PLCB authority to effectively negotiate product acquisition costs with suppliers and establish market-driven retail prices for products within the top (best-selling) 150 brands of wines and top 150 brands of spirits – the PLCB had not instituted price increases since the early 1990s. That’s nearly 25 years during which suppliers could pass along cost increases, but we had no pricing ability to maximize our own revenue generation.
Now that we have the ability to set retail prices just like other major retailers – based on market demand – we’ve made a business decision to institute modest price increases on certain products subject to flexible pricing, based on three careful considerations:
· A review of retail prices for these items in surrounding states;
· A review of each product in comparison to its competitors in the same category; and
· The market’s ability to bear the price increase.
Just over 420 prices increased modestly beginning today as a result of this careful consideration, less than 5 percent of the more than 10,000 products we offer at any given time in our stores and online, and less than 10 percent of the items carried in a Premium Selection Store. In fact, these items account for only 18 percent of the nearly 2,300 items subject to flexible pricing for which we have the authority to adjust retail prices.
Ninety-three percent of these price increases amount to $1 per bottle.
The PLCB is confident these price increases maintain competitive prices for Pennsylvanians and can be born by the market. We have continued to avoid across-the-board price increases, while striving both to increase revenue and maintain fair and competitive prices for consumers.