Perdomo schip

[Negncic]

This was posted by Nick Perdomo on the c-bid site as well as that site that smells like fish. Just thought it should be viewed by all

Good Afternoon Friends:

Many people are still in the dark on what cigar manufacturers are going to do with this tax. While many in the industry are telling us that most are having price increases on their cigars and passing the tax on to the consumers. With our prices going up every day, I can truly understand their positions. I cannot speak for other companies, but I felt it was very important to speak to you directly on Tabacalera Perdomo's stance.

Here it is:

1. We will absorb (eat) all the SCHIP tax on over 70 percent of our portfolio (Yes, you read that correctly).

2. On all Perdomo Reserve 10th Anniversary we will eat the entire SCHIP tax (Yes, you read this correctly also).

3. On Perdomo Reserve 10th Anniversary, we will also be having a Price Decrease (Again you read this right). We are dropping our prices on all our Perdomo Reserve 10th Anniversary by $25.00 to $37.00 per box at retail!!!

4. Perdomo2, Perdomo Habano and Perdomo Lot23 we will just pass on the tax. Believe me the prices are still fantastic on these great and popular cigars.

If we don't then I will have to start walking the street with a tin cup in my hand asking for money.

You might ask yourself "Has Nick gone Crazy?!" Well friends, I am doing this because in my heart I don't think we can afford to raise prices. Matter of fact in the last 16 years in this business I have raised my prices only once and that was a nickel. I also believe in these tough times going against the tide and eating most of this tax and in some cases dropping our prices on a very popular brand shows our true commitment and good will to each of you, our loyal customers. As most of you know, we don't spend much money on magazine advertisements. We spend our hard earned money on grass root efforts in events and shows. That's where I and my staff have met tens of thousands of you. We spend our money in growing the finest Cuban seed tobaccos. As you can clearly see our priorities are our customers. And by the grace of God, we have grown this small family run company yearly, where even my mom still works. You are all to thank for this. Our retailers and consumers have spread the word on Perdomo throughout the years and this is our payback to the industry that I dearly love. In these tough times we are all taking it on the chin.

I truly believe that I have made the right decision and we also believe that we will continue growing our company and continue growing the Perdomo name by offering great cigars at even greater prices.

Again from the entire Perdomo team here in the United States and in Nicaragua, we want to thank you for your support.

Sincerely,


Nick Perdomo
President Tabacalera Perdomo S.A.
Tabacalera Perdomo

[Snake Hips]

It's good business sense. When you're a popular brand and everything else increases in price, drop yours. Then you become really popular. Volume > Price.

[SmokinApe]

This = "On our most expensive profit making cigars we will cover the tax so you can continue to line our pockets, on the lower end cigars, where we make less, I'll pass the tax on to you!"

Another reason I'll never smoke a perdomo...

[Lucky_Hippo]

Originally Posted by SmokinApe

This = "On our most expensive profit making cigars we will cover the tax so you can continue to line our pockets, on the lower end cigars, where we make less, I'll pass the tax on to you!"

Another reason I'll never smoke a perdomo...

Ouch... I guess I don't get how Perdomo NOT raising prices on all of their cigars is a bad thing.

Oh well, I've been confused before so I'm sure it won't be the last.

IMHO If they can turn an extra profit by NOT passing taxes on to me, I hope they make a killing.

It would be interesting to hear from the other cigar manufacturers and their response to the Schip.....

[SmokinApe]

Maybe I am wrong, but I still won't smoke 'em...

[Negncic]

Originally Posted by SmokinApe

Maybe I am wrong, but I still won't smoke 'em...

Like them or not, at least he made an effort to explain things rather than just blindly increasing prices. For what it's worth, I am not a huge fan of Perdomo cigars, although there are a few that I enjoy.

[TripleF]

Props to Nick Perdomo!!

[duckmanco]

I only smoke the Lot 23 maduro from Perdomo, and will continue to do so based on this news..... well done Perdomo.

[Starscream]

This was also posted at the old place. It seems Nick Perdomo is a member in the ocean.

[SmokinApe]

I guess I didn't express it right...

1. The Perdomo 10th Anny's are so over priced for what you get they don't sell well. And raising the prices even makes the matter worse, so Nick takes this as a opportunity to "right price" the cigar. I am sure he is making a profit, and a smaller profit is better then none... And people might actually buy them if he acts like he is doing them a favor...

2. Now this sticks that sell well, Lot 23 and Habano's... Well he has no option but to pass on the tax, so he does. Not a biggie to him because people like them and they will buy them anyway because almost every other cigar is going up the same amount.

In summary, all he did was drop the price of his overpriced cigars; for his purpose not yours, and claim he did you a favor. He posts it on a few forums and people get all excited and people think he is swell... mission accomplished...

Originally Posted by SmokinApe

In summary, all he did was drop the price of his overpriced cigars; for his purpose not yours, and claim he did you a favor. He posts it on a few forums and people get all excited and people think he is swell... mission accomplished...

Marketing 101, well played hand IMHO.
I tend to agree, the high end sells less, so the absorption is minimal.
Pass the tax along on the bread and butter and if you look like a hero and sell 10% overall, your still ahead in the long run

Great marketing in tough times.

Chas

[Texan in Mexico]

I will be honest, I read your post last night and it kind of hit a nerve with me but I refrained from answering - the old read more, post less...

Having read your post today I appreciate your comment now and yes I feel like I didnt understand your first post or it didnt come out like you intended, it can really be tough to transmit our message on these Forums sometimes.

I actually agree with you but think it is probably a good move for his company and a way to stand out from the "herd".

Thank you for adding more information to your initial postings.

Travis

Originally Posted by SmokinApe

I guess I didn't express it right...

1. The Perdomo 10th Anny's are so over priced for what you get they don't sell well. And raising the prices even makes the matter worse, so Nick takes this as a opportunity to "right price" the cigar. I am sure he is making a profit, and a smaller profit is better then none... And people might actually buy them if he acts like he is doing them a favor...

2. Now this sticks that sell well, Lot 23 and Habano's... Well he has no option but to pass on the tax, so he does. Not a biggie to him because people like them and they will buy them anyway because almost every other cigar is going up the same amount.

In summary, all he did was drop the price of his overpriced cigars; for his purpose not yours, and claim he did you a favor. He posts it on a few forums and people get all excited and people think he is swell... mission accomplished...

[thetpi825]

Wow man is there something about the guy you don't like? I couldn't really judge what you think about him from the first few posts.

[SmokinApe]

Originally Posted by thetpi825

Wow man is there something about the guy you don't like? I couldn't really judge what you think about him from the first few posts.

It has nothing to do with liking him or not, I don't even now the man... I just seems odd to me to give the guy props for helping himself out while pretending to help us out...

[marge796]

Great job from Nick and his staff. Classy guy!

[s15driftking]

the objective was good, the delivery sounds a little "Car-salesman-y"... but overall, the prices are going t odrop a little so he is doing his part.

[Smoke Naked]

A little torn myself being a cheapo/bundle smoker, I would have rather not read this and just had the price increase.

[poriggity]

Good on them. There are a few other retailers that are at least eating the Schip tax, and as a cigar smoker, I appreciate it. I don't smoke many perdomo's, but maybe I will start smoking more to support their decision.
Scott

[Garbandz]

Thank to Mr. Perdomo.I applaude his willingness to drop prices.It is likely the only people who will benefit are the retailers,do you think THEY will pass along the savings? After all the increases we have seen on the floor stocks,which retailers do you think will willingly drop prices? Lets do a pool to bet on the one{s} who drop prices on Perdomo products........