On the eve of Schip, any boycotters?

[stitch]

Originally Posted by Beer Doctor

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

I just wish I had your cigar budget!

Its not a real big deal on the cigars that sell for say 60, 80, 100+. But the days of cheap yardgars may be a thing of the past. I know I won't spend $30 on say a bundle of mixed filler cigars(that was around 20 bucks before the BS-chip), I'd rather spend $20 bucks more on something else. But, more than likely I'll just buy less quanity and more quality and try to curb my 5-6 a day down to 2-3.......there is always going the CC route. Besides, with the new taxes CC's are in most cases going to be cheaper the NC's.

Originally Posted by stitch

I just wish I had your cigar budget!

My example was purely hypothetical. My cigar budget is puny

[oldforge]

I saw this coming when the SCHIP debate started a couple of years ago.

I am stocked up to wait out two Obama administrations.

We will see who outlasts who.

Originally Posted by Beer Doctor

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

You not wrong except you forgot a couple things. The $8 is at the manufacturer level and they base profits off of percentages so when that profit is calcualted that must figure in the tax. If we only add 50% (low figure) your $8 is now $12, there is also the extra overhead from paperwork but that will be minimal. Next thing is your State OTP (other tobbaco products) tax which gets added on when the Cigars are landed in your state. It varies from state to state but here in Michigan it is 32% so we add that to the $12 which now becomes $15.84. From that point your local retailer must add his profit margin which is anywhere from 35% to 50% depending on how they do business so $15.84 + 35% = $21.38. And this is just to keep things the way they are, if the retailers or manufactires take less, the profit margins go down and they will eventually fade out of business. This is reality. The effect is much larger than we realize. Wait until the guys who only buy $25 bundles see their new price. It will only drive more folks to buy mail order and avoid the State OTP all together. Just my opinion, I could be wrong but my calculator tells me I am not, thanks for listening.
Mike

[marge796]

Originally Posted by shortstory5

I'll never stop buying cigars...

^^^I feel the same way^^^


Don't get me wrong **** the tax man!!

[Whee]

<-----------

Originally Posted by marge796

^^^I feel the same way^^^


Don't get me wrong **** the tax man!!

Only if you wear that pink sweater and buy me dinner first.

[larryinlc]

As I look around at the various online vendors I use regularly, I see no price changes. Possibly the large mark-up in cigars allows them to absorb the new tax??

Larry

Originally Posted by larryinlc

As I look around at the various online vendors I use regularly, I see no price changes. Possibly the large mark-up in cigars allows them to absorb the new tax??

Larry

No. Like someone in an earlier post stated; The tax increase is at the manufacturer level and is in effect on all shipments of cigars imported (or produced as is the case for US based makers such as Don Pepin) into the US on or after April 1. So, several cigar makers are not raising their prices until their current stock is depleted and new shipments arrive from their factories. Others have elected to raise prices on April 1. Others, such as Drew Estate, elected to raise theirs in the middle of March.

So retailers who have inventory on hand at the old price would theoretically continue to offer the old price to their customers UNTIL such a time as they receive new orders that they placed AFTER April 1.

Bottom Line: When we get a shipment in and the invoice reflects a NEW, higher price as a result of SCHIP, we will then adjust our price accordingly... and not before.

Final Note: You will notice prices going up considerably higher than the .40 cents everyone it talking about. A few reasons are added state tobacco taxes, retailer margins (we gotta pay the bills), and PRICE INCREASES THAT ARE NOT A PART OF SCHIP BY SOME CIGAR MAKERS. I won't mention any names here, but one VERY popular cigar maker has also added a price increase on their entire line IN ADDITION to the SCHIP tax.

So you will see a wide range of price increases on different brands. Tatuaje and Esencia are the only two that I know of that have elected to absorb the entire tax increase... at least for this year.

I'm definitely MAD!! I just don't see how they lump Premium Cigar tobacco in with Cigarettes. After all, cigars aren't full of chemicals and toxic additives. A cigar smoker doesn't smoke a "Pack" of cigars a day. A cigar smoker doesn't inhale smoke into his/her lungs. Cigars are a minimal health risk compared to cigarettes IMO. That being said, cigarettes will contribute the majority of tax dollars.

As far as a protest, I could smoke a couple cigars daily, for a couple years and not run out. I won't protest because I love my B&M and would hate to see them go out of business.

The whole things frustrates me. It just seems oxymoronic to fund a segment of health care with something that the government deams unhealthy.

That's all, I need a cigar

[MedicCook]

Maybe people need to start throwing cigars into the Boston Bay.

Think positive: At least we don't pay Canadian tobacco taxes

[JaKaacH]

Originally Posted by Beer Doctor

Think positive: At least we don't pay Canadian tobacco taxes

What Slope?????

Once it starts....

Originally Posted by MedicCook

Maybe people need to start throwing cigars into the Boston Bay.

cigars? More like politicians. Starting with this tard Patrick here in MA.

I will not stop buying cigars. I will try to slow down a bit though.

Ciggy smokers are getting slammed in the arse!! All this tax has done for me is to expand my horizons to non taxed cigars. I'll still buy cigars from my B&M but I'm now sharing that budget with tax free purchases. I think it's safe to assume the tobacco tax will only go one way from here - this is just begining. Kinda like arse wipe - we'll keep buying it......for now.

[Blueface]

I love the "cc" responses.

Just wait a month or so.
I really think the doors are about to open with Cuba.

What an opportunity for the US to tax all those cigars also.

[borndead1]

Originally Posted by Blueface

I love the "cc" responses.

Just wait a month or so.
I really think the doors are about to open with Cuba.

What an opportunity for the US to tax all those cigars also.

Same thing I was thinking.

[e-man67]

Yeah, so now they have the SCHIP tax in effect and at the same time in neighboring Kentucky they bumped alcohol tax up 7%! Double screwed! So now where we use to get alcohol a few bucks cheaper now it will cost the same and more......it will cause major hardships for KY I am afraid. Just a matter of time before they place a fat tax on fast food.....

[ECPrevatte]

I wonder how many people will be at my B&M tomorrow.

[duckmanco]

I am done stocking up, have smokes for many many years to come, in fact so much I am worried about aging stuff too long.... oh well

At any rate, I will only be buying exceptional deals/closeouts or switch to those manufactures/retailers who attempt to absorb the increase or at least lend a hand with it. We'll all see if that happens.