It’s probably the Wholesale Sales to the bars and restaurants, not the Retail Sales to the citizens that are driving the Liquor Business for the State of PA. How do we know that?
The Financial Information for the State Stores is available on-line. (Here.) On the Balance Sheet, p.14, the “Merchandise Inventories”, which is the amount of beer, wine and liquor that is “on hand”, is shown as $197,827,000.00. Call it $198 Million.
On page 15 the Gross Sales are listed at $1,731,463,000.00. Call it $1.7 Billion.
The “Cost Of Goods Sold” that would be the beer, wine and liquor that the state bought in 2013 is also listed. That’s $1,192,047,000.00. Call it $1.2 Billion for a gross profit, the difference between the cost of the liquor and it’s selling price is $539,000,000.00. That’s $539 Million.
But the $198 Million Inventory is “Turned Over” every two months. ($1.2 Billion divided by $198 Million ~ six times a year.) That means the profit on the investment in goods is based on 1/6 of $1.192,047,000.00 which is the aforesaid $198,000,000.00.
The Gross Return on the $198 Million investment is the sales minus the inventory -which is $1,7 Billion minus $198 Million, which is $1.5 Billion a year.
That’s 89% profit based on costs, not the puny 8.9% that’s shown on the Profit and Loss sheet.
In addition to the profit on the sales, PA collects $440,483,384.00 that’s $440 Million -in taxes on alcohol in addition to the $1.5 Billion it collects on it’s investment in inventory.
For every dollar’s worth of Alcohol the State buys it makes $7.75, almost $8.
Here’s another statistic. There are 605 State Stores in PA. So on average, one store sells $2.8 million dollars worth of alcohol.
Is it any wonder the State wants to keep their un-Constitutional Monopoly?
It’s easier to take meat from a wolf than get PA out of the Liquor Monopoly.