Bye bye BCLDB, or not?

[The Green Barbarian]

In comparison to the private joints, BC Liquor store staff members are well-paid, well-trained, and helpful. In the private joints they’re paid minimum wage or barely higher and perform their jobs that way. Some don’t even know the law. I watched one of the staff at a private store hassle a mother with her child and send the child outside. This staff member did not even know that a minor is allowed to be with a guardian in a store where closed liquor is sold. She was a real ‘peach’ about it too: “Liquor is liquor” she snarked. She was uninformed, poorly trained, and downright rude. BC Liquor store staff can answer questions about product and provide meal accompaniment recommendations; I don’t think that wench in the private store could

It is apparent the first part of my post garnered all the attention; try reading the rest of my post now.

yes well that one example definitely means that liquor stores should all be government owned. Definitely.

[my5cents]

There is an interesting report written about the privatization of the Alberta Liquor Industry, 10 years after privatization. Granted this involves the privatization of the entire industry, not just warehousing, but it's an interesting read.,

http://www.policyalternatives.ca/sites/ ... result.pdf

In 1993/94 the Alberta Government implemented major policy changes involving the control, taxing,
and distribution of liquor products. These changes included privatization of the retail and warehousing
functions, switching from an ad valorem (percentage of price) to a unit (flat) tax system of
alcohol excise taxes, and the ending of direct control of liquor regulation and moving to a legislative
and enforcement approach. Ten years later the retail industry has evolved into monopolistic competition
with its inherent excess capacity and high costs. The government has lost effective control of the
liquor industry which will likely continue to evolve into an oligopolistic market structure as chain
stores get greater control. Against the trends in other jurisdictions, liquor consumption has increased
(with its potential risks of increasing social ills), wholesale costs have risen, and retail prices have
increased. Although retail prices have increased, the tax revenues to government have fallen significantly.

[kgcayenne]

in response to kgcayenne:
In comparison to the private joints, BC Liquor store staff members are well-paid, well-trained, and helpful. In the private joints they’re paid minimum wage or barely higher and perform their jobs that way. Some don’t even know the law. I watched one of the staff at a private store hassle a mother with her child and send the child outside. This staff member did not even know that a minor is allowed to be with a guardian in a store where closed liquor is sold. She was a real ‘peach’ about it too: “Liquor is liquor” she snarked. She was uninformed, poorly trained, and downright rude. BC Liquor store staff can answer questions about product and provide meal accompaniment recommendations; I don’t think that wench in the private store could

It is apparent the first part of my post garnered all the attention; try reading the rest of my post now.

yes well that one example definitely means that liquor stores should all be government owned. Definitely.

Maybe it’s time for a secret shopper expedition to liquor stores. How convenient though that Castanet mods don’t allow negative reviews.

[Smurf]

Turning it over to private business and collecting taxes from them might be an alternative if they didn't keep cutting the taxes they pay. Better left in public hands where we at least make some money from it. Once in private hands it's income gone forever.

[Captain Awesome]

Who says they're making money now?

[XT225]

Profit: Where do you want it to go? Private company for private benefit or Gov’t coffers with more potential for public benefit?

In comparison to the private joints, BC Liquor store staff members are well-paid, well-trained, and helpful. In the private joints they’re paid minimum wage or barely higher and perform their jobs that way. Some don’t even know the law. I watched one of the staff at a private store hassle a mother with her child and send the child outside. This staff member did not even know that a minor is allowed to be with a guardian in a store where closed liquor is sold. She was a real ‘peach’ about it too: “Liquor is liquor” she snarked. She was uninformed, poorly trained, and downright rude. BC Liquor store staff can answer questions about product and provide meal accompaniment recommendations; I don’t think that wench in the private store could.

I totally agree. I will never patronize the mom and pop corner liquor store until their prices are the same as the LCB Govt run ones. I was amazed to find out the Govt one is open 7 days a week now, plus the service, knowledge of the staff is far superior to the private run ones. The ONLY reason that I would go to a private one is if I needed some beer right NOW, and cold. Sure the Govt workers get more wages but in this day and age you get what you pay for. ps: you would think that since private pays far less wages, they could cut their prices.

[my5cents]

Who says they're making money now?

You're kidding, right ?

[Captain Awesome]

You're kidding, right ?

Not really. I don't keep up with political news, so forgive my ignorance.

[my5cents]

Not really. I don't keep up with political news, so forgive my ignorance.

No problem at all I just thought you were kidding.

2010/11 (I think their budget is April to March) Net income was $890,400.00. It was $83 million below target, due to the economy.

Don't forget this is after paying decent wages to it's employees.

http://www.bcliquorstores.com/files/201 ... _final.pdf

[Captain Awesome]

2010/11 (I think their budget is April to March) Net income was $890,400.00. It was $83 million below target, due to the economy.

Don't forget this is after paying decent wages to it's employees.

I guess I didn't put it properly. BCL is indeed making money. But we are talking about simply two warehouses and transportation services being privatized. We're not talking about the whole BC Liquor entity. If the two warehouses and transportation right now are part of BCL, how can one say they're turning a profit? Unless they're run as a separate entity, it's really hard to ballpark.

In reality, we're talking about contracting out warehousing and transportation aspect of BCL.

[The Green Barbarian]

I totally agree. I will never patronize the mom and pop corner liquor store until their prices are the same as the LCB Govt run ones..

Go to the liquor store in the OK Corral on Kirshner. Same prices as the government, and they are very friendly and helpful. More and more private ones are advertising that they are matching the government pricing. You would think in an open competitive market, you would have to if you wanted to survive.

[XT225]

Now THAT is some good news, GB. I live in the South Okn, however where higher prices and poor service in private liquor stores is common. Lets hope they all get on the bandwagon of price matching and educating/training their staff.

[my5cents]

I guess I didn't put it properly. BCL is indeed making money. But we are talking about simply two warehouses and transportation services being privatized. We're not talking about the whole BC Liquor entity. If the two warehouses and transportation right now are part of BCL, how can one say they're turning a profit? Unless they're run as a separate entity, it's really hard to ballpark.

In reality, we're talking about contracting out warehousing and transportation aspect of BCL.

Got where you're coming from. Yes,, and that figure is hard to find.

What I did find was the LDB Service Plan Report (page 20) : http://www.bcbudget.gov.bc.ca/2012/sp/p ... /bcldb.pdf

The LDB has two types of operations based on customer type – retail and wholesale. Retail operations includes sales from BC Liquor Stores (GLS) to retail customers. Wholesale operations include sales from the LDB’s Wholesale Customer Centre, GLSs, and from authorized BC manufacturers and private distributors. The LDB uses an Activity-Based Costing Analysis to allocate expenses between the two operations and this analysis is updated annually. The segmented information provided below allocates the Summary Financial Outlook from the previous page into the retail and wholesale operations.

WHOLESALE OUTLOOK (In millions $)
Total Sales 1,656.0
Commissions & Discounts 201.5
Cost of Sales 899.3
Operating Expenses 83.7
Other Income 5.6
Net Income 477.1

This would obviously include liquor sold wholesale by Government Liquor Stores to other retail outlets, such as restaurants.

I don't know who would be selling to those outlets, once the warehousing is sold.

[Captain Awesome]

Got where you're coming from. Yes,, and that figure is hard to find.

It's actually quite impossible - because distribution and warehousing is simply an expense without any revenue generated. Revenue is being generated when somebody buys this service - currently it's just part of operations. So, hence my question - who says it's a money-making entity and why do people classify it as revenue-generating asset?

The question that one should be asking - will they save money by outsourcing these operations? Because they will have to pay for these through RFP process - bids would have be submitted, etc. but at the end of the day they won't have to pay for the operations of them.

And that is the question.

[Smurf]

My question would be if it doesn't make money why would private enterprise want it. Are we then going to start paying them to run it?