According to the Ontario Auditor General report, the LCBO is not using its buying power to negotiate best prices. So by extension, we the public end up paying more then we should had they done their job right.
My thinking is since their margins are so high and their pricing formula (at least their floor pricing) is based on cost, then it actually benefits them to pay higher cost to achieve greater margins. Either that or LCBO management should be fired for incompetence. Either way, Ontario residents are screwed.