Tuesday, April 27, 2010

DABC to Cut Hours?

Let's say you own a company with many different divisions. One of these division makes you a lot of money. Now you've just been informed that you need to start cutting costs. Where do you start?

I get it... cuts need to made. Every division needs cuts. But would you sacrifice your businesses income to save a little in your overall budget? I'm not the most business savvy guy around, but even I know this moronic.

Well just when you thought Utah's "book keepers" couldn't get any more moronic when it comes to cost cutting, there comes word that they're actually considering cutting the hours of Utah liquor stores by two hours a day.

Now while this cut in hours could save the DABC more than $400,000 dollars a year in labor costs, it could cost the state a shit load of income.

While these cuts would help balance DABC’S budget, it may suck even more money away from the state. It's estimated that for each dollar DABC cuts, it loses 4 to 5 dollars in revenue. So if the DABC cuts $400,000 dollars a year by opening later and closing earlier, that could mean lost revenue of 1.6 to 2 million dollars per year.

Makes perfect sense to me! Let's hope the DABC Commission has the smarts to shoot this down. Cutting store hours would require their approval.

Cheers

6 comments:

Anonymous said...

Keep in mind this doesn't mean you have to go with out the good stuff. Buy direct from your local brewery

Douglas said...

Mikey, your logic is sound.

colbylee said...

I work for the DABC, they cut mine and many other "part time" workers hours that were working 40 hours a week because we are that busy, but now we have less people working and more demand at our store. It sucks that drinkers have to take another shot in the head because we are the minority of the state.

Paul said...

Some of us don't have the convenience of a local brewery though. =P

Plang said...

Wait, I'm lost. I thought DABC was the only part of the state that MADE money. Do they actually have to "balance" their budget? Are they in the red? How is that possible.
I agree with colbylee, they are very busy and making money, why would they cut store hours for the one place that makes money for the state?

Andy gets thirsty after 10pm said...

Think how much revenue they could bring in if they would just open up a couple of 24 hour liquor stores! Problem solved. Seriously, somebody in a decision-making position at the DABC is being paid too much. They could be a volunteer and I'd still say they were being paid too much.