I was thinking maybe 100-300 boxes a month. Seeing how low the sales price is on some of the boxes, what do you think the make on a $200 box after shipping; $20-30?I would not be surpised if some of the venders were moving $10,000-$20,000 a month online. Let say average of $200 a box thats only 100 boxes a month.
I would say that is realistic of any online vender.
I think 100% business like markup is way off to be one of the top vendors. I bet their closer to 20% + estimated shipping charge. Let's not forget taxes; some vendors pay very little if any tobacco tax and others could 30% or more. With no rent to pay and little staff, a tight margin is still profitable. Perhaps the monthly sales number are larger like 150-200 boxes a month?Since we're guessing, the best recourse is to work backwards from what they would NEED to sell.
Say they are charging a business-like markup of 100%, that would be a gross profit of $100 - $150 on the average box.
If there's fish in the water, then it's probably safe to swim in (unless they're man-eating fish). Just like your post says, any numbers we put up will purely be estimate. Since this is in the Habanos section, I'll assume that you meant online vendors that sell cuban cigars vs. everything else. When you think about online vendors in general, it's safe to assume that they push a significant volume.I am curious to how many boxes the major online vendors sell a year (per vendor)? Any estimates? I know this is going into fishy waters, but we should be able to talk about this in the most general sense without naming names...
Wow, that's pretty amazing. I'm in the wrong line of work. I guess with any "luxury" product the markup is higher as people don't have a problem paying more. If you really think about the labor rates in other countries it probably only costs maybe $1 or at most $2 to make any cigar, even a $25+ super premium. Think of all the markup, middlemen, taxes, etc.Well if I were to guess I would think any one vender is making $40-$75 per box with no tax. So at a 100 boxes a month that would be $5,500 gross profit a month x 12=$69,000. I know its in another form of currency.
That not a bad gig.
I read an article on a guy selling NC 's online and he went from $180,000 a year to $1,500,000. in just one year of online sales. That is a huge increase.
So I bet a vender selling Cuban cigars could have no problem doing $2,000,000 a year in sales online if they are a top vender. I think the key to it is being in a tax free zone. I have watch as venders have moved from high tax countries to countries that look to be tax free.