I need a quick answer on US pricing

Lexxxus · 05-20-2009, 09:10 AM

I heard that prices (because of taxes) is set to drive stogie prices way up in the US... Is that true?

I just placed a 3 box order from Atlantic and the prices seemd low as always.

What's the story morning glory?

W

acarr · 05-20-2009, 09:13 AM

They were suppose to go up but I haven't seen it yet personally. In fact some stuff I always buy actually went down 20%.

heavyd · 05-20-2009, 09:18 AM

It seems like prices are going down, not up, which has surprised me.

JaKaacH · 05-20-2009, 09:27 AM

I think it might be a while before the price increase/tax will show up or be noticeable. Most vendors are trying to keep the sales volume up and passing on the tax increase immediately might slow down their sales. Also the pre-tax stocking up some cigar smokers did might have made the vendors think about how fast to pass on the increase..To keep sales up.
Of course this is just one mans opinion, I could be wrong...

Does anyone know how much, if any, cigar sales have decreased since the tax increase?

Volt · 05-20-2009, 09:54 AM

A few vendors I have chatted with have not increased the price on existing stock.. I can't imagine they are going to eat the tax forever...

PeteSB75 · 05-20-2009, 10:08 AM

Considering the general state of the economy, they all have to hurting volume-wise. The normal response to that would be to have a sale, which is what they are doing. Considering the margin they make on hand-rolled cigars, this is not surprising. The tax increase will be passed along in due time, I'm sure.

MedicCook · 05-20-2009, 10:10 AM

The B&M I go to has been increasing as the new stock comes in that haws been subjected to the new federal & state increases.

duckmanco · 05-20-2009, 10:29 AM

It has not been nearly long enough to tell IMO. I think a lot of manufacturers will eat the cost for a while, and I think a lot of house blends on some of the bigger sites, CI, famous etc.. will hold their prices. Basically, we are still waiting for the other shoe to drop.

St. Lou Stu · 05-20-2009, 10:37 AM

Quote:

Originally Posted by MedicCook

The B&M I go to has been increasing as the new stock comes in that haws been subjected to the new federal & state increases.

Ditto on Ryan's remark.

It happened immediately at some B&Ms but some limited it to new stock only as that is what it was intended to be applied to.

Although, the increase isn't all that drastic..... 15%ish?

TomHagen · 05-20-2009, 10:57 AM

Both local B&M's here in by me on LI,NY have jacked their prices UP!

ActionAndy · 05-20-2009, 11:07 AM

Quote:

Originally Posted by MedicCook

The B&M I go to has been increasing as the new stock comes in that haws been subjected to the new federal & state increases.

Yup. James and Sons on Broadway has a sign on the door of their humi explaining the new taxes and why their prices have gone up.

MedicCook · 05-20-2009, 11:21 AM

I know a few manufacturer's have also added a price increase in hopes to hide it from the consumer with the new tax increases. I know Drew Estate did this on the ACID's. Some of there sticks went up $3 between all the new taxes and their price increase. Luckily I can't stand ACID cigars so it does not bother me at all.

JJG · 05-20-2009, 02:30 PM

yeah, as I understand it the tax increase does not affect their existing stock, only new inventory purchased after the law went into effect. As somebody else mentioned some B&Ms began raising their prices on everything including existing stock once the bill went into effect. On the other hand, some manufacturers and retailers are trying to absorb all or part of the increase themselves. I think Pete at Tatuaje said in an interview that they were not going to be raising their cost to retailers.

RGD. · 05-20-2009, 07:57 PM

The sign on the counter of a local B&M states that the effective tax on cigars now stands at 158%.

Ron

alley00p · 05-20-2009, 08:28 PM

Quote:

Originally Posted by RGD.

The sign on the counter of a local B&M states that the effective tax on cigars now stands at 158%.

Ron

I wonder where they got that figure from?

My B&M owner hasn't touched his prices, but he figures his markup on the price he pays... If the price goes up when he restocks, He'll raise the price on the new sticks. I think that is fair, personally.

It could be worse, I guess... the folks that roll their own cigarettes were paying around $6.00 a pound + sales tax - now the same bag of baccy is going for around $30-$40 a pound!

awsmith4 · 05-20-2009, 08:35 PM

The new tax is only on cigars imported after April 1, 2009 so any cigars already in stores should not have risen but do expect it in some of the new stock. Certain companies have chosen to eat the increase while others passed it along to the consumer.

05-20-2009, 09:10 AM	#1
Lexxxus I break for Cubans Join Date: Jan 2009 First Name: Wayne Location: Winnipeg CANADA Posts: 130 Trading: (2)	I need a quick answer on US pricing I heard that prices (because of taxes) is set to drive stogie prices way up in the US... Is that true? I just placed a 3 box order from Atlantic and the prices seemd low as always. What's the story morning glory? W __________________ Lx I invented the cordless extension cord.

05-20-2009, 09:13 AM	#2
acarr Have My Own Room Join Date: Oct 2008 Posts: 1,307 Trading: (34)	Re: I need a quick answer on US pricing They were suppose to go up but I haven't seen it yet personally. In fact some stuff I always buy actually went down 20%.

05-20-2009, 09:18 AM	#3
heavyd Adjusting to the Life Join Date: Nov 2008 First Name: Dave Location: La Mesa CA Posts: 316 Trading: (22)	Re: I need a quick answer on US pricing It seems like prices are going down, not up, which has surprised me. __________________ "You can't get to wonderful without passing through alright." ~Bill Withers

05-20-2009, 09:27 AM	#4
JaKaacH ROCK Chalk JAYHAWK K U Join Date: Oct 2008 First Name: Jeff Location: Living in the golden age of ignorance in power. Posts: 1,363 Trading: (32)	Re: I need a quick answer on US pricing I think it might be a while before the price increase/tax will show up or be noticeable. Most vendors are trying to keep the sales volume up and passing on the tax increase immediately might slow down their sales. Also the pre-tax stocking up some cigar smokers did might have made the vendors think about how fast to pass on the increase..To keep sales up. Of course this is just one mans opinion, I could be wrong... Does anyone know how much, if any, cigar sales have decreased since the tax increase? __________________ --Anger Management Graduate-- WHAT the F^#% you looking at???

05-20-2009, 09:54 AM	#5
Volt I'm nuts for the place Join Date: Oct 2008 Posts: 2,799 Trading: (19)	Re: I need a quick answer on US pricing A few vendors I have chatted with have not increased the price on existing stock.. I can't imagine they are going to eat the tax forever... __________________ Curing the infection... One bullet at a time.

05-20-2009, 10:08 AM	#6
PeteSB75 Have My Own Room Join Date: Oct 2008 First Name: Pete Location: CT Posts: 1,674 Trading: (18)	Re: I need a quick answer on US pricing Considering the general state of the economy, they all have to hurting volume-wise. The normal response to that would be to have a sale, which is what they are doing. Considering the margin they make on hand-rolled cigars, this is not surprising. The tax increase will be passed along in due time, I'm sure. __________________ Formerly Malik23

05-20-2009, 10:10 AM	#7
MedicCook Mila smoked my cigar Join Date: Jan 2009 First Name: Ryan Location: Schaghticoke, NY Posts: 10,946 Trading: (7)	Re: I need a quick answer on US pricing The B&M I go to has been increasing as the new stock comes in that haws been subjected to the new federal & state increases. __________________ 27 World Series Championship's "If your wife doesn't like the aroma of your cigar, change your wife.", Zino Davidoff

05-20-2009, 10:29 AM	#8
duckmanco Can't stop whats coming Join Date: Oct 2008 Location: that forsaken stretch of wood they call Whiskey Grove Posts: 404 Trading: (10)	Re: I need a quick answer on US pricing It has not been nearly long enough to tell IMO. I think a lot of manufacturers will eat the cost for a while, and I think a lot of house blends on some of the bigger sites, CI, famous etc.. will hold their prices. Basically, we are still waiting for the other shoe to drop. __________________ "...Ain't no dark till somethin' shines..."

05-20-2009, 10:57 AM	#10
TomHagen Rabbinic Consigliere Join Date: Oct 2008 First Name: Tattejuaje Location: NY Posts: 601 Trading: (12)	Re: I need a quick answer on US pricing Both local B&M's here in by me on LI,NY have jacked their prices UP! __________________ Cigar Asylum Minyan///Corona Gorda Comparison Thread Do Acts of Goodness and Kindness!!

05-20-2009, 11:21 AM	#12
MedicCook Mila smoked my cigar Join Date: Jan 2009 First Name: Ryan Location: Schaghticoke, NY Posts: 10,946 Trading: (7)	Re: I need a quick answer on US pricing I know a few manufacturer's have also added a price increase in hopes to hide it from the consumer with the new tax increases. I know Drew Estate did this on the ACID's. Some of there sticks went up $3 between all the new taxes and their price increase. Luckily I can't stand ACID cigars so it does not bother me at all. __________________ 27 World Series Championship's "If your wife doesn't like the aroma of your cigar, change your wife.", Zino Davidoff

05-20-2009, 02:30 PM	#13
JJG Have My Own Room Join Date: Jan 2009 First Name: Jeff Location: Houston Posts: 1,260 Trading: (4)	Re: I need a quick answer on US pricing yeah, as I understand it the tax increase does not affect their existing stock, only new inventory purchased after the law went into effect. As somebody else mentioned some B&Ms began raising their prices on everything including existing stock once the bill went into effect. On the other hand, some manufacturers and retailers are trying to absorb all or part of the increase themselves. I think Pete at Tatuaje said in an interview that they were not going to be raising their cost to retailers.

05-20-2009, 07:57 PM	#14
RGD. God Like Status Join Date: Oct 2008 First Name: Ron Location: Alexandria, Virginia Posts: 971 Trading: (1)	Re: I need a quick answer on US pricing The sign on the counter of a local B&M states that the effective tax on cigars now stands at 158%. Ron

05-20-2009, 08:35 PM	#16
awsmith4 Simple Pleasures - 2oL Join Date: Oct 2008 First Name: Albert Location: Marietta, Georgia Posts: 4,602 Trading: (111)	Re: I need a quick answer on US pricing The new tax is only on cigars imported after April 1, 2009 so any cigars already in stores should not have risen but do expect it in some of the new stock. Certain companies have chosen to eat the increase while others passed it along to the consumer. __________________ Its THIS easy to support our troops