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Chimpus herfustus
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Discussion Starter · #1 ·
I know we all spend a pretty penny on these cigars we enjoy. I am just wondering where all that money goes. From the pictures of the factories I am reasonably certain that it isn't the rollers. Is it the factory owners, salespeople, senior rollers, vendors? Who? One thing I am sure about, in the case of domestics, is that California takes a fat bite out of all of it to infuse the beuracracy with more ineffectuality. I imagine that the people at the very top get rich while the lower level people are probably paid very little. What do you guys think?

SB
 

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MoTheMentor
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3,075 Posts
I always thought that the cigar business, while a lot of times surrounded by glamour, was a very small margin business.

The most successful operations I've seen (whether it's JR Cigars or Holt's, Tabacalera Fuente, Tabacalera Perdomo, or Torano Cigars) from the looks of things, are probably very profitable in terms of dollar value; but I think that's because the very successful operations are well established and do a lot of repeat business. In other words, profits are good because the total revenues are good, the profit margins are still small.

Even for something the size of a Davidoff, or Hunter's & Frankau, it still took a long time, a lot of work, and many good decisions to get to be that size.

I bet if you talk with some of the respective owners of the biggest cigar people, they'll tell you that they have many projects on the planning board but never enough money needed to even get the majority of them off the ground.

Just my 2 cents worth. :w
 

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Shags homely sheep
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5,059 Posts
I'm not sure anybody gets rich, but I think most people are comfortable, with the owners and growers getting a lot of perks. I know the states get a pretty penny though. I think that's why most people sample at the local shops and buy boxes or bundles on-line. I dropped about $45 on six smokes last month at a local shop and that was with buy 5 get one free and I'm always looking for bargains ala TxMatt. Damn taxes :sb
 

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Punch Suckling in Brain
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1,116 Posts
I have heard that the rollers for the Opus X get some good $. Espcially considering that is the Dominican. Also you have the fact that each size of Opus is rolled by only one person.
 

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Just like in most big business, the guys at the top get rich, while the workers do the work. Tobacco is big business across the globe and you can bet there are people getting rich off of it.
 

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MoTheMentor
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3,075 Posts
Matt R said:
Just like in most big business, the guys at the top get rich, while the workers do the work. Tobacco is big business across the globe and you can bet there are people getting rich off of it.
I figure with all the time & money I'm spending in the Tobacco business I'd be a little wealthier by now -- NOT. :p :w
 

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Enjoying life...
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I think the companies that have a successful online sales presence make a large profit. Its cheaper than having an old brick and mortar business. Therefore, I don't think the neighborhood cigar shop makes very much.

Jeff
 

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formerly Jokieman
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987 Posts
Honestly, I'd guess it's the retail shops. The owners make good money, but they have to invest for years to make that money, and sometimes a couple of bad crops or a building that goes up in smoke will leave them bankrupt.

Nope, i'd say that in this particular business, it's the retailers that make the money.
 

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Jeff said:
I think the companies that have a successful online sales presence make a large profit. Its cheaper than having an old brick and mortar business. Therefore, I don't think the neighborhood cigar shop makes very much.

Jeff
Except to deal directly with distributors, you need a brick and mortar. So if your online only, your profit margin is lower.
 
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