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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	January 28, 2013 12:21 PM
From:	Senator Richard L. Alloway, II
To:	All Senate members
Subject:	LIQUOR CONTROL BOARD MODERNIZATION - FLEXIBLE PRICING

In the near future, I will be introducing legislation as part of a package of bills relating to the Modernization of the Pennsylvania Liquor Control Board (PLCB). This package will provide consumers greater convenience and generate additional revenue for the Commonwealth while enabling the PLCB to operate as a more efficient agency. I plan to introduce a piece of legislation that will allow the PLCB to implement flexible pricing, thus eliminating the "one size fits all" mark up requirement allowing the PLCB the ability to adjust pricing based on fluid market conditions. Current law states that the PLCB must apply its mark up (currently 30%) equally on all products. This "one size fits all" approach to pricing is uncommon in the alcohol beverage industry. This change will allow for market-based pricing which would lead to increased profitability for the PLCB. The flexibility with pricing will also allow the PLCB to function more like a private retailer, with the ability to increase revenue and profitability of certain products, while being able to offer better deals to consumers on other products.

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