18- 553 C.M.R. ch. 2, § II

Current through 2024-51, December 18, 2024

Section 553-2-II - Pricing

All final list and special pricing decisions shall be made solely by the Director in accordance with this Rule and Title 28-A of Maine law. Final list pricing decisions by the Director are subject to the approval of the Commission.

A.Pricing of New Spirits Products

1. After the Commission has approved a new spirits product for listing, the Director shall propose a price for the spirits product subject to the approval of the Commission for that spirits product.

2. The Director shall establish the list price of new spirits products and may take into account any of the following factors:

a. The NABCA price exchange book;

b. The NABCA retail price index;

c. New England control states' current retail pricing;

d. Costs of similar products in an applicable category and sold in Maine;

e. Whether a product is a line extension;

f. Whether a spirits product has an acceptable gross profit margin;

g. The cost of product, including freight, supplier's insurance, applicable bailment, and other similar charges;

h. Agency store profit margin; and

i. Price point adjustments.

3. Retail price points for products packaged at 375 milliliter or larger shall be limited to the following values: $XX.49 or $xx.99. Retail price points for products under 375 milliliter shall be limited to the following values: $XX.29; $XX.49; $XX.79 or $XX.99.

B.List Price Changes

1. List price change requests may be submitted to the Director by suppliers, suppliers' representatives, or vendors of record.

2. Review of list price change requests shall be completed quarterly by the Director and approved by the Commission, with any price changes effective by the first day of the following months: February, May, August, and November.

3. All requests for list price changes must be submitted in a form or format as prescribed by the Director at least ninety (90) days prior to the first of each month in which a price change, if approved, would be effective.

4. List prices may be reviewed monthly by the Director, regardless of whether a request has been made. The Director will notify suppliers, suppliers' representatives or vendors of record of any price changes initiated under this subsection at least sixty (60) days in advance of the effective date of any change.

5. The following process shall occur with respect to list price decisions:

a. Prior to rendering final decisions on list prices, the Director shall make a preliminary decision on list prices being considered.

b. Notice of the Director's preliminary decision on list prices shall be given to suppliers, supplier's representatives, vendors of record, or other stakeholders, any of whom may comment on the Director's preliminary decision. Notice may be given by the Director electronically or in hardcopy. All comments concerning the Director's preliminary decision about list prices must be submitted in writing within ten (10) days of the notice.

c. After receiving and reviewing comments submitted pursuant to paragraph b of this subsection, the Director shall issue final decisions on any list prices within fifteen (15) days of the close of the comment period.

d. At its next scheduled meeting, the Commission will consider any of the Director's decisions on list prices and determine whether to approve or disapprove the Director's final price decisions.

e. If any of the Director's price change decisions are not approved by the Commission, the list price will not be changed and subsequent change requests may be submitted during the next pricing cycle as set forth in these Rules.

f. The Commission's determination of whether to approve or disapprove the Director's list price change decisions is final.

C.Special Pricing

1. Suppliers, supplier's representatives or vendors of record may request, in writing, special pricing for products packaged at 375 milliliter and higher to the Director.

2. All requests and recommendations must be made sixty (60) days prior to the requested effective date of the proposed special price.

3. The Director's decision on special price requests and recommendations is final.

4. All cost-sharing decisions related to special pricing shall be authorized solely at the discretion of the Director. Only the State shall participate in cost-sharing with the suppliers, suppliers' representatives or vendors of record.

5. Special pricing of spirits products may also be initiated by the Director at the Director's discretion.

6. In making a special pricing decision, the Director may consider any of the following factors:

a. Whether the subject spirits product has been out of stock ninety (90) days prior to the special price request;

b. Performance of the subject spirits product if the spirits product has been specially priced previously;

c. The amount of cost-sharing between the supplier, supplier's representative or vendors of record and the State;

d. Seasonal and promotional factors; and

e. Any of the criteria listed in section II(A)(2) of these Rules.

18- 553 C.M.R. ch. 2, § II