Mikes Cigars loses Oliva.

[Sauer Grapes]

I don't see anything close to half msrp on their site...

Originally Posted by Sauer Grapes

I don't see anything close to half msrp on their site...

I think he is talking about this..

https://www.mikescigars.com/ProductD...-SAMPLER/29260

[houdini]

Originally Posted by calhounhusker

I think he is talking about this..

https://www.mikescigars.com/ProductD...-SAMPLER/29260

Good deal too!

[Silound]

I'm of mixed opinions about this, mostly because I've only got a limited amount of information. As far as I can tell, that sampler is the only thing that's being sold so far below MSRP.

Any retail knowledgeable person will tell you that brand recognition is a major player in sales. Many retailers (whatever the product is) sell a certain item of a name brand as a "loss leader" to attract other sales. If I like the cigars in this sampler, I'm very apt to buy more of those cigars, probably at the full price. So it's very possible that MikesCigars was using that sampler to boost Oliva sales. Why they didn't simply make arrangement to do this with Oliva, I'm not sure.

I can also see Oliva's point of view trying to protect the brand, but there are other ways of getting around that problem, so I don't see why there's a need to pull the account. Raise your price to the supplier, and let them sell the item for no profit or a loss. Limit the available stock to them.




I'm wondering what other information we aren't privy to, because a half million dollar a year account is a LOT of money for a business to simply throw aside, even a multi-million dollar outfit like Oliva can't afford to go killing accounts left and right. "A penny here, nickle there, and soon you've lost a whole dollar" as the saying goes.

[neoflex]

I can understand why they would do this but my problem is that the manufacturers are more likely to pull an account due to the prices being to low but more often than not they will turn a blind eye to a vendor who is jacking the prices of their smokes. Perfect example is how many vendors get away with jacking the prices of Opus and Anejos but Fuente supposedly has a strict rule on this but day after day year after year we see it. Again just my .02.

[Bruce]

Originally Posted by neoflex

I can understand why they would do this but my problem is that the manufacturers are more likely to pull an account due to the prices being to low but more often than not they will turn a blind eye to a vendor who is jacking the prices of their smokes. Perfect example is how many vendors get away with jacking the prices of Opus and Anejos but Fuente supposedly has a strict rule on this but day after day year after year we see it. Again just my .02.

Yes!
And Mikes was one of the biggest gougers when it came to Opus during the cigar boom.

[Nimbus]

Originally Posted by houdini

Good deal too!

I am tempted to pull the trigger, but I must have some self control!