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Big Guy versus Little Guy

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@PeterG7
PeterG7 started a discussion

Everyone who lives in Ontario knows there is only one place to purchase alcohol and that's the LCBO. We know, if we want to buy, we pay the price. There is no comparison shopping. I spend a fair amount of time in the US and have noticed that there is often a fluxuation of prices within the same state. For example, Total Wine (big guy) prices are determined most often by volume. It's simple math. Order more, pay less for the product, then price it to make it attractive to the consumer. I now know their marketing stategy. What I didn't know was how does the little guy competes with the big guy. Truth be told! They can't. If big guy moves next store to little guy it's game over. On my last trip to Fla I decided to find out. I looked for liquor stores in small towns where there was competion, but didn't have big guy. What I found was the prices are slightly higher, there is less stock and less choice. What I also found is they competed with each other. There were bargains to be had and if you root around, there is a potential to find product that the "big guys" don't carry. It makes my wife wild (part of the fun) when I spot a hole in the wall liquor store. She knows for the next half hour or so I'm on a quest for a hidden treasure.

My question..(yep there is one)

Anyone do the same and if so have you stumbled across a rare find at a reasonable price?

11 years ago

5 replies

@WhiskyBee
WhiskyBee replied

Other than a couple of small-batch independent bottlings, for which there's not much basis for price comparison, I haven't come across any rare finds in the smaller shops.

But the little guys offer some good deals occasionally. I live in Valparaiso, Indiana, and we have two reasonably decent stores under the same ownership. If I'm in a serious-shopping mood, I drive 45 minutes to the nearest Binny's outlet in Illinois. Binny's selection is larger, of course, and their prices are better, but only by a few bucks in most cases.

However, the local stores offer better deals on a few items. Binny's charges $120 for Highland Park 18 yo, whereas the local shops ask $90. HP 18 is one of their biggest-selling top-shelf drams, so they order it in bulk and charge less. Of course, HP 18 isn't exactly a "rare" find.

But the local guys are no bargain when it comes to hard-to-find stuff. The HP example is more the exception than the rule.

11 years ago 0

@CanadianNinja

Great thread @PeterG7! Here in Japan, alcohol can be purchased almost anywhere food products are sold, grocery stores, convenience stores, snack stands etc. It's also not uncommon to come across the odd beer vending machine! We have 'big boy', chain liquor stores as well as an endless number of 'mom and pop' liquor shops.

I have found that in terms of price, the 'big boys' usually have lower prices, but some real hard to find gems can often be found at the smaller shops. That being said, really anywhere you're buying whisky in Japan will have a heck of a number of choices. The selection here really is incredible in my opinion.

11 years ago 0

@PeterG7
PeterG7 replied

@CanadianNinja I'm back in Fla in two weeks and I'll be poking around looking for bargains.

11 years ago 0

@SlowPuffs
SlowPuffs replied

My experience in Alberta is that the Big Guys do have the better prices on popular brands, ie Solo Liquor, Real Canadian Liquor Store. The exception would be Wine & Beyond, Liquor Depot that seem to have convenient locations for shoppers (i.e. near Walmarts, grocery stores) , but their prices are generally higher.

For items that are a challenge to find, I have identified a handful of small specialty stores that I will frequent. The "hunt" is always fun.

11 years ago 0

@JeffC
JeffC replied

I agree that in small towns, the little guys usually don't have the selection of the big guys. In larger towns and cities though, they may have the same selection and price in niche product areas. Moreover, in some areas, there is no "big guy" since the state (like LCBO or Virginia ABC) controls the retail sale or in small towns where the state does not control there still may be no big guy.

One odd thing I have noted from chatting with some liquor store owners/employees (one of my family members at one point too) is that other lines of business at their store may allow them to effectively subsidize liquor prices. For example, one owner told me he does not sell lottery tickets at his store because the margins are low and it almost requires a full time employee. However, another owner who does sell lottery tickets told me he does it wholeheartedly (notwithstanding the low margins and required employee) because the revenue he gets may support lower prices elsewhere in his store, it brings people in the store, and he sees it as a loss leader for other products. I don't make a habit of going to liquor stores that also sell lottery tickets or even play the lottery, but I have observed that one store near me that sells a lot of lottery tickets prices as low as some of the big guys. I probably would never go to that store but for it being close to my work.

11 years ago 0

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