Does this seem right to you?

[irratebass]

Originally Posted by drevim

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.

[replicant_argent]

Originally Posted by drevim

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.

Originally Posted by irratebass

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?

[irratebass]

Originally Posted by replicant_argent

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?

The d1ck move I was referring to was shop #2 raising the price higher than shop #1.

You explained it all in your above message, and you are right shop #2 has a right to do that and we as consumers have the right not to shop there.

[bobarian]

Originally Posted by irratebass

The d1ck move I was referring to was shop #2 raising the price higher than shop #1.

You explained it all in your above message, and you are right shop #2 has a right to do that and we as consumers have the right not to shop there.

That's absolutely ridiculous. You know nothing about the second shop. He may have higher rent and overhead. He had to pay sales tax on his purchase and pay the employee to go and buy the box. Maybe his customers dont like the first shop and are willing to pay extra.

[drevim]

Originally Posted by bobarian

That's absolutely ridiculous. You know nothing about the second shop. He may have higher rent and overhead. He had to pay sales tax on his purchase and pay the employee to go and buy the box. Maybe his customers dont like the first shop and are willing to pay extra.

While I, and no one except the owners, can speak of overhead costs. This may very well be true. I wasn't passing judgement on either shop. The newer shop (#1 in the post) seems to have a much larger selection, and as was stated, made their asking price for the box.

#2 has been around for a much longer time, and while it does have a decent selection, has always had far more of a mark up than the other 4 or 5 shops in town. May be that they were able to do this prior to any competition. May be that they have the overhead issue. They do a steady business, but seemed to be mostly regulars when I was going there.

The only point I was trying to make, is that markups can happen in many ways.

[bobarian]

Originally Posted by drevim

While I, and no one except the owners, can speak of overhead costs. This may very well be true. I wasn't passing judgement on either shop. The newer shop (#1 in the post) seems to have a much larger selection, and as was stated, made their asking price for the box.

#2 has been around for a much longer time, and while it does have a decent selection, has always had far more of a mark up than the other 4 or 5 shops in town. May be that they were able to do this prior to any competition. May be that they have the overhead issue. They do a steady business, but seemed to be mostly regulars when I was going there.

The only point I was trying to make, is that markups can happen in many ways.

I must have missed where I was commenting on your post.

[drevim]

Originally Posted by bobarian

I must have missed where I was commenting on your post.

It was a comment of a comment of my post. I probably should have multi-quoted to connect the chain. No worries, just wanted to clarify my point.