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Wednesday, July 23, 2008

Just How Many Laws Can The Liquor Dispensary Break?




Let me start with this. They hadn't reported their monthly figures to the Council for the past 6 1/2 years! They showed financial reports every two years, not every year and they stopped informing the Council six and a half years ago. This was part of their guidelines that they had to report earnings every month and they have refused. Once the Council recently demanded they do so, they finally started giving them numbers. I should add, it was stated clearly, "Reports were recently delivered, yet they were very sketchy." By law, these reports were also supposed to be printed in the local Newspaper.

The State of Maryland demanded that ANYONE selling liquor had to be TAM or TIPS Certified. GET THIS! None of them were Certified BY LAW from October of 2006 to May 8, 2008! In other words, they were breaking the law for all those years.

Their agreement with the County was that they would provide "any" size bottle to resellers and they flat out refused to do so.

Here's one of the big things I found unbelievable. The Dispensary was supposed to work off of a 14% mark up. However, what they were doing instead is, they were working off of the RETAIL price of a bottle of liquor and then discounting it 14%! Let me give you an example of how it worked. Let's just say they would sell a bottle of liquor for $10.00. The would mark it down 14% to $8.60 to a local Bar. HOWEVER, let's say, (and this happens on most of the products they purchase) the Dispensary would buy that bottle of liquor on sale from the distributor in massive bulk twice a year. So they'd purchase that bottle for lets say $5.50 a bottle. That's NOT a 14% mark up!

Statements were made in this meeting, "The system is ripe for abuse." My biggest concern right now with this whole thing is, the Dispensary is spending thousands upon thousands of dollars promoting why they should stay independent from the County privatizing the sale of liquor, yet there's no one out there educating the Public as to why it's actually hurting the Taxpayers financially and certainly the Bars and Restaurants reselling liquor at their locations.

Mr. Calvin Mitchell represents 4 local VFW locations and stated they could walk across the street from their Delmar, Maryland location and purchase liquor for at least 50% less than the Wicomico Dispensary, NOT including the 6% tax Maryland charges on each bottle!

Sadly, if you were to poll the citizens of Wicomico County and ask them who they buy their liquor from, they would more than likely state they buy it from Wicomico County. This is absolutely not true and the Dispensary is giving the County a bad name.

There's no accountability and they're completely autonomous. My guess is that this special task force that was recently created will strongly suggest the County in fact take this to referendum and let the Taxpayers choose what they want. However, the language has to be very creative to assure the taxpayers know what they're voting for.

The Dispensary, (like I said earlier) is spending YOUR tax dollars to plead their own case by threatening your costs will go up if the system is privatized. That's just not true. Bars, Restaurants and Liquor Stores would be able to take advantage of bulk prices and the business would then become competitive enough where I'd say your pricing will easily come way down.

I'm sure GA will be chiming in on his opinion about this meeting today but let me add, NO ONE from the Dispensary came to this meeting nor the two previous to this one. They didn't even send in their attorney.

It should also be noted. One of the Restaurant Owners stated that they truly don't believe many of the Bars and Restaurants you see locally will be around next year. Sales are dropping fast because of the economy and at the rate their paying to purchase liquor from the Dispensary, many places will be closing. What I find interesting about that statement is, here's the Dispensary crying about all the jobs they'd be losing, yet they couldn't care less about PRIVATE people who have put up evverything they own just to survive. There will be far more people out of jobs and the economy will feel a much bigger impact losing all these businesses than simply closing down the Dispensaries.

In closing, they created this board to look into ways, (should they choose to privatize the system) to create enough money so as they will not lose revenue from the sale of alcohol and today they have come up with a way to do so. That information will come later but it should be known, it can be done without any of the business owners complaining.

18 comments:

Anonymous said...

Don't we (the county) have a lawyer
to handle this? If we do , and he is not concerned , then he should be fired.
The Adkins Firm in Baltimore would make newground out of these asses.

Anonymous said...

GOTTA BE CRIMINAL BEHAVIOUR IN THE SOMEWHERE

Anonymous said...

Sounds like a class action lawsuit. Drinkes vs. Wicomico County. Sounds like we have been getting screwed.

Anonymous said...

Time to close the Dispenaries and let our business people handle the need for liquor sales.

A. Goetz

Anonymous said...

We do not need a lawyer.
We need some honest people in wicomico county government not appointed by the good ole boys club.
Buy the way, when where government employees held accountable for anything,
Dont get all up set and fire back at me about all the good honest people in out government, and tell me the next election will fix it all.
bull crap aint nothing going to change ...
It is called greed ,whos getting rich at the whiskey store. Details at six......

Anonymous said...

I have never bought a bottle of liquor in Wicomico County. I take the ride to Brownies in Delmar or I used to go to Celia Shaners place on old 13. I saved more riding the 26 miles round trip including burning gas, especially during holidays when I give various people bottles of their favored liquor as gifts. Until Wicomico County can compete I'll continue riding to TAX FREE Delmar.

Anonymous said...

You're not alone. I shop Brownie's all the time and have done for years.

Anonymous said...

Joe, is this all true? Why hasn't someone done something about this?

Chimera said...

Whats TAM or TIP certified mean?Im a dummy
LOL

Anonymous said...

Tips training is a course on carding people, how to spot a suspicious or fake ID. Basically everything you really need to know to do the very best you can from serving minors. Handling people who have been drinking, behavior signs to look for, when to cut people off and so forth.

They give bars and restaurants a 15% discount on the retail markup yes. Unless that has changed, the bottles were marked up 25% for half gallons (Only a 5% discount on half gallons to wholesalers). Liter's and fifth's were marked up 30%, pints 35%, half pints 40% and miniatures were marked up 45%. Unless it has changed that was the markup structure 5 years ago.

There were also times that alcohol was bought on sale from the distributors which created a bigger profit and was rarely passed on to the customer. Employees there get a better discount than the restaurants and bars that buy $2,000,000 of liquor from there a year.

I'm sorry so few owners attended the meeting. The restaurant owners are the ones that can really make an impact by informing their customers of how this operation works and why it is time for it's retirement.

Get them registered to vote too while you're asking them to vote on it. I'm all for doing away with it but it will take hard work from the retailers to get the word out and make sure people register to vote so they can vote on the referendum.

I will say right now that when it went to referendum in Worcester county, the board worded their propaganda making it sound like if there wasn't a Worcester County Liquor Control (Sellers) that alcohol in the county would just be out of control. THAT IS JUST NOT TRUE.

That's what the Worcester county residents read and they voted it down. Let's not allow that same propaganda fog the minds of people in Wicomico county. I have the faith in Mike Lewis that alcohol will never be out of control in this county.

Anonymous said...

Oh and then after the course you have to pass a test to be certified as a TIPS trained employee, you are then registered and expected to take updated classes a time goes on. TIPS is an acronym for something, slips my mind right now.

It's basic common sense that some people let escape from them when they are very busy. The intentions though are to be as knowledgeable as possible about new fake ID's, a book that shows what every state's official ID and drivers license to avoid a sales violation. The books also show some others licence's like, Puerto Rico, Canada and a few others.

I've had a few people cuss me out when I cut them off LoL The good part was that they lived to come back the next day. Some act like it just never happened.

Anonymous said...

If you are not TAM certified ,
and you are caught selling booze ,
Your business could be shut down and you could be fined.

Chimera said...

LOL I recognize two of the guys in the audience-Pat and Frank if I am not mistaken.Pat owns Break Time and Frank co-owns Cactus Club.

Anonymous said...

Just How Many Laws Can the Liquor Dispensary Break?
All of them!

Anonymous said...

Best post on the issue so far. Thanks Joe. I doubt prices in bars will come down though. Owners will be happy to keep things the same and increase profits. Besides, when is the last time prices in ANY bar or resturant ever went down? A good read none the less.

Two Cents

Tim Chaney said...

Yup that is Frank and Pat, I know Frank, and you can't find a nicer person. I don't know Pat except of sight, but have also heard he treats his employees well.

Anonymous said...

There are a lot of legal loop holes that Ed Baker has to jump through to get the accountability we expect. A new board may be a better board, however why we are at it let's just do away with the system.

Anonymous said...

Come on, a restaurants closing because of the rate they are paying for liquor.

Restaurants close for 3 main reasons: Bad management, Bad location, and employee theft. If liquor prices go up, drink prices go up. Every restaurant should do a cost/price analysis on every food item on the menu at least every 3 months now, and drinks at least every 6 months.

The person you mentioned probably hasn't done this recently, if ever. Too many owners and managers new to the business don't know how to price their menu. And they don't know when the bartenders aren't ringing up all the drinks.

And quite a few restaurants will probably close in the bury soon, because of too much supply. All the national chains ignored the shore for decades, and then all showed up at once, over-saturating the market.

How many decent restaurants were around 10 years ago when the pub closed? 15 years ago. There is at least 2, maybe 3 times as many restaurants in town now. Has the population gone up that much???

A lot of fishy stuff going on, but PLEASE, don't try to blame a restaurant closing on liquor prices being too high. That's either bad management or theft.

BC