Mark Aselstine
 
January 31, 2013 | Mark Aselstine

Regulations, Regulations, Regulations

So the UK is basically proposing that wine clubs and retailers no longer will be able to offer discounts if you buy more than one bottle.  The government will also create an artificial floor in pricing, that no retailer can undercut.

These are bad ideas across the board.

We understand that city governments, state governments and federal governments all over the world are experiencing severe budget issues.  My wife works at a high school, so we hear about the budget and the affects of the budget on what seems to be a weekly basis.

We also understand the want and need of governments to raise revenue through higher taxes.  Without a doubt, it’s a tough job right now with no easy answers.

I don’t think excessive regulation is the way to do it though.  First, there simply isn’t much revenue being created by the sale of $2 Chuck.  Sure things in the UK are a bit different, but I’m sure there are various states here that have considered some of these same steps.

If I could lend a fairly simple idea-let everyone compete for business.  One thing everyone has learned over time, consumers love a good deal.  What happens after consumers drink a bunch of $2 wine is interesting, if their budget allows they eventually start buying $10 wine.  Later in life, they’re ordering single vineyard Pinot Noir from folks like us (only like us after all since we don’t exactly ship to the UK).

What I’d hate to see happen are states and federal governments impose these excessive regulatory laws and cut out a generation of wine buyers from being able to start tasting wines and finding out what they like.  Frankly there isn’t any reason given the level of money we’re talking about, versus the need.  As a retailer, we’d much rather see a simple raising of sales taxes while allowing us to continue to compete for consumer’s business.

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