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Old 04-19-2011, 05:39 PM   #27
T.G
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Default Re: Castro Resigns ?? What Could This Mean?

Quote:
Originally Posted by 68TriShield View Post
That and quality I think would nosedive due to increased demand from the U.S. market.
Unless it's inadvertent, I can't see that happening.

I can see them rapidly ramping up manufacturing to meet the demand, but if in the process there is a lowering of the quality of that supply to get more cigars out there, they would turn off a large part of an entire possible customer base because they would be producing poorly made cigars. Couple that with it's almost a given that vendors will ramp up the prices regardless, you've got a combo for losing an entire market segment almost instantly. Once the novelty wears off, the populous won't pay a high price for a tent peg more than two or three times before going back to their Macanudos and NC whatevers that don't have the quality problems. If there is reduced quality, there will be a reduced demand and prices will have to follow suite.

By keeping supply tight and quality at present levels, they can ramp the prices through the roof, and if they don't, law of supply and demand will do it for them.

Does HSA, or more accurately, Imperial Tobacco, see this possibility? I don't know.


Last edited by T.G; 04-19-2011 at 05:48 PM.
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