Quote:
Originally Posted by Bad Finger
I'm not justifying ANYTHING. But when you've gone to conventions, know what wholesale is, and then see those sticks in certain stores for 25% more than your regular B&M's, yeah..something is up and it stinks.
$40 45th Padrons
$20 Nostrosos
$25 Camacho Triple Maduros
These are why I don't go into certain stores. When something is above MSRP, who is the real thief in that equation?
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Often times cigars in event areas are bought from a retail outlet not a wholesaler or a manufacturer. Every time a cigar changes hands (as well as many other products) it often needs to be doubled to make a margin that is profitable. Without profit there is no point in business. If the market will bear a $40 Padron then that is not gouging, that is providing for your customer base. Cigars are not a necessity so no one is forced to pay high prices. The only way a person would be a thief is if they misrepresented what they were selling. If they have a cigar clearly priced and a customer is willing to buy that cigar at that price then that is the free market at work. If the seller was peddling fakes or rebanding lower grade cigars then that would constituent thievery.
With that said it does trouble me to go to a local shop that has higher prices than their competitors, know that they get them from the same source, and then hear them complain that no one is buying and the other guys are undercutting them. If your competition is pricing lower maybe you need to as well. Yes, you may not make the same margin per cigar but a low margin is better than no margin from lack of sales.