difference in pricing

Supply chain/distribution cost (economies of scale) and logistics cost probably contribute to pricing differences.

@Alexsweden, the huge differeneces exist not just among countries/nation-states, but WITHIN countries. In the US alone there are vast differences in pricing from one place to another. Much of that is due to differences in taxing in different jurisdictions, but much of it is due also to the oddities and idiosyncrasies of the distributors used. For example, different distributors may have different deals/contracts with the same products brands, and thus be functioning from a different cost basis. Economies of scale make huge differences. For example, I live in a county distribution system which has 25 retail liquor stores. The county government controls all spirits distribution here. The county government has bargaining power among the distributors based on supplying about a million people. We have excellent, sometimes about the best in the world, prices on many whisky items, and not so good prices on others. My guess is that the not-so-well-priced items are mostly from sole source distributors who are not having to compete on price to get the county's buying contracts.

@Victor

The LCBO calls itself the largest buyer in the world for wins and spirits, and is thus able to get the largest variety of products at the best price because of bulk buying.

So why is it we have pretty much the worst selection and the highest prices?

@Nozinan, if it is true that the LCBO has the 'worst selection', then that is just incompetence, or just as likely, indifference to the desires of its residents. The LCBO is a liquor system to deliver liquor to the people administered by, basically, liquor-hostile government bureaucrats.

The answer to worst prices is simple: the LCBO has no intention of using its buying power to give its citizens good prices on liquor. Its intention is to use its monopoly power to extort money from its citizens and to inhibit their "hard" liquor consumption by making it available only at exorbitant prices.

As Victor has mentioned the price difference happens everywhere, here in the UK at the moment 3 shops have the same bottle listed .. 2 have it at £59 and the other at £90.. All 3 are big named shops, the more expensive has a chain of shops as well as online sales ! So I guess it's greed ..

And then after all that supply chain and tax junk plays out, the retailer sets their own price. Whisky's not like gasoline, where the product is virtually indistinguishable from one provider to another and sellers compete on price. Instead, each brand has a fair amount of monopoly power in being the only one that provides THAT whisky. And retailers know that, especially in a luxury goods market, this monopoly power produces price inelasticity—i.e., the guy who's willing to buy a bottle of A'bunadh for $85 is probably just as willing to pay $92. Thus you get every different seller taking a stab at setting a price that will rake in the dough while still turning over inventory.

Well, what about price competition and buyers who comparison shop, you ask? They (we?) are the minority. I can personally tell you how the price of Ardbeg 10 compares across a few different sellers, both locally and online—but I'm probably one of like four guys, max, in my city who care that much.

Thus, crazy price differences.

@Alexsweden My local liquor guy will put a whiskey on sale, at or below cost, just to entice customers. He hopes that they will make other purchases as well and become a loyal customer. Most other items are at the regular price.

See, we don't get that in Sweden. That's actually illegal here!

@Alexseden a high proportion of cost in the UK is alcohol duty(tax) but then they hit you with 20% Value Added Tax as a non essential, this is added onto the price of the goods including duty, so you pay tax on a tax, most food and drink falls into VAT free category but not alcohol and sweets. Production, bottling, marketing and distribution making up the rest of the cost before a profit margin is factored in. The major supermarkets regularly discount alcohol to cost or below known as loss leaders in order to increase footfall but the practice is not done by smaller retailers. The VAT alone on an average prices whisky costing £36 is £6, and the duty is rumoured to be around £10-£12 a bottle. So without tax I could buy a decent bottle for around £20 Laphroaig 10 and Highland park 12 both run around £33 in store but have seen discounted to £25 which when you add it up means the distillery is only getting somewhere in the region of £10-15/bottle for all their costs, not a lot when you think of the time in the barrel. The issue arises when you want a better quality as the supermarkets stock the items they know they can shift volume quickly and the specialist shops want premium prices for their services due to smaller turnover/higher operating costs. As always it comes down to shopping around and finding the best value and when you see a bargain buy what you can afford.