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Old 08-26-2012, 05:05 PM   #1
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Default Does this seem right to you?

My friend went to a local B&M because I received an email and told him that some new sticks were in.

He went and picked up a few for me and I asked him how much they were his response was "Very expensive, but very yummy."

So, again I asked him how much and his response was "Between $15-$30!!!" I couldn't believe this, so I went online and found 2 of these cigars pictured below, the Octoberfest and La Duena for $7.50-$8.75

This really upsets me that this B&M would hike the price up an extra $7-$14.....I heard about taxes, but c'mon......I want to support this business, but if I can get them for WAY less online why bother? Any feedback??

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Old 08-26-2012, 05:09 PM   #2
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Default Re: Does this seem right to you?

Depending on where your friend is, that may be right. Some states like New York have a 70% tobacco tax. There is also the possibility of additional mark-up. We have a shop here that charges on average $1-$2 above retail. Why you ask, "Because We Can", is the response I got when asked.
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Old 08-26-2012, 05:12 PM   #3
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Default Re: Does this seem right to you?

The nice thing about a free country is that you can take your business elsewhere. It's a hard lesson, but I never ask someone to buy sticks for me unless I know what it will cost.
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Old 08-26-2012, 05:47 PM   #4
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Default Re: Does this seem right to you?

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Originally Posted by Ogre View Post
Depending on where your friend is, that may be right. Some states like New York have a 70% tobacco tax. There is also the possibility of additional mark-up. We have a shop here that charges on average $1-$2 above retail. Why you ask, "Because We Can", is the response I got when asked.
It was Alan Larry, we are both in Indiana and I just couldn't make it so he went instead.
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Old 08-26-2012, 07:47 PM   #5
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Default Re: Does this seem right to you?

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Originally Posted by irratebass View Post
It was Alan Larry, we are both in Indiana and I just couldn't make it so he went instead.

I am on the north side of Indy and we have 2 local B&M's here. I find usually a 2 to 3 dollar markup at one and a 4 to 5 at the other compared to online. And that is before taxes......
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Old 08-28-2012, 05:53 AM   #6
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Default Re: Does this seem right to you?

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Originally Posted by Ogre View Post
We have a shop here that charges on average $1-$2 above retail. Why you ask, "Because We Can", is the response I got when asked.
I'd quickly tell him that you'll buy them cheaper online from now on "because you can".
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Old 08-26-2012, 05:15 PM   #7
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Default Re: Does this seem right to you?

That seems to be in the ballpark for the PG's.
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Old 08-26-2012, 06:17 PM   #8
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Default Re: Does this seem right to you?

Ouch. Lesson learned.
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Old 08-26-2012, 06:21 PM   #9
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Default Re: Does this seem right to you?

Being from the land of taxes, aka California... I have succombed to pretty much ordering all my cigars online.... Not to mention, the only decent cigar shop with a lounge in the area is no longer in business. There is a decent cigar shop near my work, but there is no lounge, and no smoking in the shop. I will occasionally pick up some smokes from there, but they are $$$. Online is where it's at.
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Old 08-27-2012, 08:24 AM   #10
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Default Re: Does this seem right to you?

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Originally Posted by poriggity View Post
Being from the land of taxes, aka California... I have succombed to pretty much ordering all my cigars online.... Not to mention, the only decent cigar shop with a lounge in the area is no longer in business. There is a decent cigar shop near my work, but there is no lounge, and no smoking in the shop. I will occasionally pick up some smokes from there, but they are $$$. Online is where it's at.
Scott
Pretty much my deal here in Southern Oregon. Very rarely do I buy local.. If I can get a free shipping(which happens 99.99% of the time) it is always cheaper.

Sucks not to buy local, but in an effort to help them, I need to help myself save money as well.
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Old 08-26-2012, 11:02 PM   #11
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Default Re: Does this seem right to you?

There is a B&M here that marks up LPs and other semi-htf sticks 100% or more. In Alabama where taxes aren't bad at all, it's just gouging. That same place also sells wine at damn near restaurant prices. Some proprieters will charge whatever they can get people to pay.

They might even need to charge such high prices to pay rent, if people who know cigars don't come to your store because the prices are stupid high then your business will rely on the odd curious newby than comes in and doesn't know what cigars are worth. So if your prices are too high to start with and run all the customers away, then prices just have to keep going up, next thing you know you're selling LP9s for $25.00

That's my theory, anyway.
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Old 08-27-2012, 01:02 AM   #12
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Default Re: Does this seem right to you?

You also have to take into account that the online big boxes are buying the cigars in larger quantities than the local B&M so the online places buy cheaper and sell cheaper. It's just like Wal*Mart coming into your neighborhood and putting the local family owned shop out of business.
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Old 08-27-2012, 02:31 AM   #13
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Default Re: Does this seem right to you?

This is my take on all this. Take it for what it's worth. I love my B&M, great place run by a great guy. The thing is he is a little overpriced compared to online vendors. That is because of state taxes and such. I understand that. What I do however is if he has a stick I have yet to try, I will pick up 1 or 2 just to support him. I will then buy a box online if I truly like it. To each their own however.
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Old 08-27-2012, 04:55 AM   #14
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Default Re: Does this seem right to you?

Quote:
Originally Posted by ZaneG View Post
I am on the north side of Indy and we have 2 local B&M's here. I find usually a 2 to 3 dollar markup at one and a 4 to 5 at the other compared to online. And that is before taxes......
This was at Indy Cigar Bar

Quote:
Originally Posted by MedicCook View Post
You also have to take into account that the online big boxes are buying the cigars in larger quantities than the local B&M so the online places buy cheaper and sell cheaper. It's just like Wal*Mart coming into your neighborhood and putting the local family owned shop out of business.
This is exactly why I want to support my local B&M's

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Originally Posted by area51 View Post
This is my take on all this. Take it for what it's worth. I love my B&M, great place run by a great guy. The thing is he is a little overpriced compared to online vendors. That is because of state taxes and such. I understand that. What I do however is if he has a stick I have yet to try, I will pick up 1 or 2 just to support him. I will then buy a box online if I truly like it. To each their own however.
Now this I didn't think about, nice strategy.
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Old 08-27-2012, 06:42 AM   #15
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Default Re: Does this seem right to you?

Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.
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Old 08-27-2012, 09:41 AM   #16
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Default Re: Does this seem right to you?

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Originally Posted by drevim View Post
Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.
Wow! That's a D1ick move for sure.
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Old 08-27-2012, 10:31 AM   #17
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Default Re: Does this seem right to you?

Quote:
Originally Posted by drevim View Post
Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.
Quote:
Originally Posted by irratebass View Post
Wow! That's a D1ick move for sure.
So, the first shop owner is happy, he sold cigars for his price.
The second shop is purchasing a product, and putting capital into a product he may or may not sell, taking the risk that he can indeed sell them for the higher price to make a (fairly small) retail profit to drive his business. He is also expanding his inventory to serve his customer base at a cost that is most likely higher than what may have been normal wholesale pricing (if there is a licensing or preferred vendor pricing structure.)
The customer (any customer at any shop) has the choice to buy or not buy at any price.

And the "D1ck" move is exactly what?
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Old 08-27-2012, 08:03 AM   #18
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Default Re: Does this seem right to you?

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Originally Posted by irratebass View Post
This was at Indy Cigar Bar.
Well. That's the issue heh. I have only been there a few times but since its not a typical B&M its beyond marke
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Old 08-29-2012, 09:54 AM   #19
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Default Re: Does this seem right to you?

Quote:
Originally Posted by area51 View Post
This is my take on all this. Take it for what it's worth. I love my B&M, great place run by a great guy. The thing is he is a little overpriced compared to online vendors. That is because of state taxes and such. I understand that. What I do however is if he has a stick I have yet to try, I will pick up 1 or 2 just to support him. I will then buy a box online if I truly like it. To each their own however.

Exactly what I do. I also try and make it to the events he puts on.
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Old 08-27-2012, 02:50 AM   #20
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Default Re: Does this seem right to you?

There is one B&M on Maui and no smoking in the shop. There about a handfull or less on Oahu and the tobacco tax is 50% in Hawaii. I always travel with my own cigars, but when visiting a B&M, I will always purchase a couple of cigars to support their business.

I don't have to buy the most expensive cigar in the shop, but it must be nice to have them around, to sit and light up a smoke and enjoy the moment. Just saying.......
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