BCLDB to Force “Wholesale” Customers to use BCLDB Credit Card for all Purchases
The BCLDB sent out a bulletin on February 16, 2011 to all so-called wholesale customers, that is, all customers who buy from the BCLDB (liquor stores, restaurants, etc.) to announce that they may soon be required to use a BCLDB credit card to make all their purchases. This forced mode of payment restricts the business choices of all companies that buy from the BCLDB and it eliminates all purchaser’s ability to use their own credit cards with their own bonus plans (such as airmiles).
The BCLDB announced that it is looking to partner with a single financial institution to implement this new credit card. Why is this happening? My guess is because the BCLDB did not hit its revenue target last year and so it is looking for ways to make a quick buck. Partnering with a single financial institution is sure to include a deal that this institution pay a significant amount of money to BCLDB for the privilege of carrying hundreds of millions of dollars of private company debt.
In my opinion, this is another example of a flat out abuse of power by the BCLDB and it infringes on businesses rights. The BCLDB is losing revenue because their stores and service are inferior compared to their private counterparts. Rather than realize that the private sector is doing a better job and seeking to help them succeed (and thus pay more taxes), the BCLDB is implementing another inane policy that only impacts their myopic short term goals.
The real problem here is that this sort of insanity will likely not end with this policy. As the BCLDB continues to lose revenues to private stores that are more efficient, offer better selection and better service they will continue to implement these sort of underhanded and anti-competitive tactics to prop up their lagging revenue.
Is it not time to get rid of this “bully in the playground” – the BCLDB? I say yes.