you b&m's cigar pricing
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3,928 Posts
Many things go into this, but I would pay more for a cigar at a B&M because of a couple of reasons:
1) The instant gratification of taking your cigar with you or smoking it in the store.
2) The ability to pick out the cigars that you want from a box (I look at the wrappers closely.
3) The ability to buy singles
4) the service the B&M provides
I don't think that we know the mark up, we know the TAX but not the markup. Personally I support the local B&M's
1) The instant gratification of taking your cigar with you or smoking it in the store.
2) The ability to pick out the cigars that you want from a box (I look at the wrappers closely.
3) The ability to buy singles
4) the service the B&M provides
I don't think that we know the mark up, we know the TAX but not the markup. Personally I support the local B&M's
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4,816 Posts
This is the formula they SHOULD use.
Example: Georgia has a 23% tobacco tax.
If a shop buys a box wholesale for $100.00, they should take $100.00 X 2.23 and divide by the number in the box (i.e. 24, 25, etc.). The 2 is for keystone (100% markup) and the .23 adds in the 23% State tobacco tax to the price of the cigar.
It's a very simple formula, but some dumba$$ shop owners don't get it.
Example: Georgia has a 23% tobacco tax.
If a shop buys a box wholesale for $100.00, they should take $100.00 X 2.23 and divide by the number in the box (i.e. 24, 25, etc.). The 2 is for keystone (100% markup) and the .23 adds in the 23% State tobacco tax to the price of the cigar.
It's a very simple formula, but some dumba$$ shop owners don't get it.
There are alot of factors that go into pricing of cigars as well as any product.
1) How much is the retailer paying for the cigars?
2) What are the taxes in that retailers city or state?
3) How much in overhead do they pay for their store (rent, utilities, payroll, etc...)?
4) What other services do they offer (lounge, drinks, food, etc..)?
Whenver possible, I buy my cigars from my local B&M for the same reasons that Baboruger listed plus:
A) Supporting local businesses is something that everyone should do
B) Personalized service that you don't get with online retailers
C) They host cigar events and go out of their way to bring them to you
D) They remember me when I go in and sometimes, they might keep that in mind when they get a limited supply of something (culebras, anejo's, special releases, etc...)
1) How much is the retailer paying for the cigars?
2) What are the taxes in that retailers city or state?
3) How much in overhead do they pay for their store (rent, utilities, payroll, etc...)?
4) What other services do they offer (lounge, drinks, food, etc..)?
Whenver possible, I buy my cigars from my local B&M for the same reasons that Baboruger listed plus:
A) Supporting local businesses is something that everyone should do
B) Personalized service that you don't get with online retailers
C) They host cigar events and go out of their way to bring them to you
D) They remember me when I go in and sometimes, they might keep that in mind when they get a limited supply of something (culebras, anejo's, special releases, etc...)
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2,346 Posts
I very rarely buy any cigars in the UK, online or B&Ms. The tobacco tax is approx 250%. When I do purchase cigars, I will always buy from Mike @ Leaf and Ale. He runs a B&M in TN. Although his pricing is slightly higher than the big online retailers, he is a stand up BOTL and customer service is the first thing on his mind. His communication is very good and he always, always looks after his customers. That to me is worth more than saving a few extra $$. If I cant afford the few extra $$, I buy a few less cigars. I consider Mike my 'local' B&M :lol: Just my 0.02
I have, for the most part, shop via land line to B&M's and use their webpage. The closest B&M is 70 miles...it costs $8. to ship USPS. I do use the e-tailer when i absolutely have to....meaning getting something that I can't at these particular 3 places. They have what I want, they get my business, its a trust/loyalty issue for me.
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2,526 Posts
The store I go to normally marks up it's cigars a bit more than most shops but it's worth it because of the lounge. If you don't want to pay the prices go to a dif. B&M. Thats the way I see it.
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541 Posts
Too funny. Was just wrestling with this issue today. We have one B&M here that we will absolutely not deal with. Bad attitude and stupid crazy markup ($32 for a Graycliff Churchill or Monte Platinum Churchill).
The one we like, we try to deal with as much as we can afford. For example, I just returned home from him where I paid $28 for a $14 Lucienne pipe because I wanted one here for this weekend. Didn't care what kind, just needed a sampler pipe. Also picked up a sample of tobacco, and I'll probably go back for a tin of Navy Flake.
Now, will I go buy another from him for $28? No, I will not. My immediate need was met, and I was able to give a little support to the local guy.
These guys have to make a good profit or they will not be here. I like having him here, so he gets my business on a lot of things. We have spent several hundreds of dollars with him since July, and he's always happy to see us.
When we find something we really like though, instead of having him order a box for us (he doesn't stock box qtys) we'll just order it ourselves, as we cannot afford to pay double MSRP or higher on box qtys.
Makes us sound like cheap bastards, but we all gotta survive in this economy.
The one we like, we try to deal with as much as we can afford. For example, I just returned home from him where I paid $28 for a $14 Lucienne pipe because I wanted one here for this weekend. Didn't care what kind, just needed a sampler pipe. Also picked up a sample of tobacco, and I'll probably go back for a tin of Navy Flake.
Now, will I go buy another from him for $28? No, I will not. My immediate need was met, and I was able to give a little support to the local guy.
These guys have to make a good profit or they will not be here. I like having him here, so he gets my business on a lot of things. We have spent several hundreds of dollars with him since July, and he's always happy to see us.
When we find something we really like though, instead of having him order a box for us (he doesn't stock box qtys) we'll just order it ourselves, as we cannot afford to pay double MSRP or higher on box qtys.
Makes us sound like cheap bastards, but we all gotta survive in this economy.
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1,195 Posts
$100.00 x 1.73 is a simple formula also. I'd rather they use this one.
Most local b&m's keystone there cigar and add tobacco tax.
I expect that. Online places are going to blow away my local B&M because most of them ship from a part of the country where there is a minimal cigar tax.
for example a cigar that wholesale for 3.00 in NY is going to be 6.90, and if the sales tax is included it will be 7.50 a stick.
That same 3.00 wholesale cigar will be 5.00 or so online because they make it up on shipping and the bulk.
I support my local B&M. I am willing to pay more, because of the convenience, the smoking atmosphere, and I believe in supporting my local economy.
I expect that. Online places are going to blow away my local B&M because most of them ship from a part of the country where there is a minimal cigar tax.
for example a cigar that wholesale for 3.00 in NY is going to be 6.90, and if the sales tax is included it will be 7.50 a stick.
That same 3.00 wholesale cigar will be 5.00 or so online because they make it up on shipping and the bulk.
I support my local B&M. I am willing to pay more, because of the convenience, the smoking atmosphere, and I believe in supporting my local economy.
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541 Posts
$7.50 a stick over $5.00 stick is more than fair for a B&M I think. However, would you still support that B&M if they charged you $12.50 to $15.00 a stick? That is what we are faced with here at one of the B&M's.
And do you go ahead and pay the extra $50 dollars for a box of them too?
The B&M we like is very similar to your example which we feel is fair for a handful of sticks. But the extra $50 is a bit tough to swallow.
Lucky for me, PA is one of the few (i think only 2) that does not have a tax on cigars.
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616 Posts
Cost of the same cigar can differ if one b&m buys direct and another goes through a distributor. Th reasons for this can be many; minimum order requirements, contracts, terms, credit worthiness, etc.
That being said, in NJ there is a 30% OTP (tobacco tax). To get keystone I take the price of the box (with shipping charges), add 15% to it and times it by 2. Then I divide the total by the number of cigars in the box and get a price. I then round the price to pay for bags, matches, lounge, toilet paper, etc. The rounding is not horrific, say a stick turns out to be $6.93, I just make it $7, fair and easier on the cashier, as well as avoiding sales tax rounding, which the government loves to do. In NJ there's a 7% sales tax, so $7 becomes $7.49. If I left it at $6.93 the cost would be $7.4151, which the gov't would round up to $7.42. Why give them more. The sales tax is on top of the OTP tax, they're making a tax for a tax and benefiting above the 37%. For $.07 difference, I'm being fair and staying in business.
You can decrease your cost by buying smart. For example, at times, CAO sends me free boxes so that on certain cigars I can offer a buy 3 get one free. Take advantage of this, as it is free to you. Average your costs per stick and this brings it way down and competitive with online, without having to buy an entire box.
Additional reasons for shopping at b&m's as many good ones have already been mentioned are: quick rotation of stock (nothing stale or moldy), immediate delivery, order something before it is released, help with accessories, social value, store specials and coupons, the b&m's support you by sponsoring Youth groups and other LOCAL charities, a good immediate return policy, good local b&m's fight State & Federal tax legislations and inform you of such, personalized service & advice, and the list goes on and on never ending.
Support your local B&M!!
That being said, in NJ there is a 30% OTP (tobacco tax). To get keystone I take the price of the box (with shipping charges), add 15% to it and times it by 2. Then I divide the total by the number of cigars in the box and get a price. I then round the price to pay for bags, matches, lounge, toilet paper, etc. The rounding is not horrific, say a stick turns out to be $6.93, I just make it $7, fair and easier on the cashier, as well as avoiding sales tax rounding, which the government loves to do. In NJ there's a 7% sales tax, so $7 becomes $7.49. If I left it at $6.93 the cost would be $7.4151, which the gov't would round up to $7.42. Why give them more. The sales tax is on top of the OTP tax, they're making a tax for a tax and benefiting above the 37%. For $.07 difference, I'm being fair and staying in business.
You can decrease your cost by buying smart. For example, at times, CAO sends me free boxes so that on certain cigars I can offer a buy 3 get one free. Take advantage of this, as it is free to you. Average your costs per stick and this brings it way down and competitive with online, without having to buy an entire box.
Additional reasons for shopping at b&m's as many good ones have already been mentioned are: quick rotation of stock (nothing stale or moldy), immediate delivery, order something before it is released, help with accessories, social value, store specials and coupons, the b&m's support you by sponsoring Youth groups and other LOCAL charities, a good immediate return policy, good local b&m's fight State & Federal tax legislations and inform you of such, personalized service & advice, and the list goes on and on never ending.
Support your local B&M!!
OUTRAGEOUS!!! I PAY FOR YOU TO POOP????? :lol:
i like to buy at my local stores . The people that own and operate them are great people to get to know and hang out with. They are very up to date as to whats going on in the cigar world as well and just great to talk to about anything. I dont normally buy cigars by the box, i prefer to have a varitey so ill buy like 5 cigars at a time of all differnt stuff. Or buy 20 mixed cigars. To do this hands on at the local B&M makes the experience more of one to remember rather than just clicking around on some sticks on the web. I cant get everything i want here so then i go to the web to order. Theres alot of great online retailers tho that i am happy to buy from, they are also great people tring to make a living. The price is only one factor when buying cigars, customer service and selection are the main reasons i shop where i do and when i do. I support both the internet and local shops and dont see a problem with this. I think some of these HUGE online retailers may be wise to stay away from tho ( not going to name names ) but i just dont get the satisfaction i would buying from them because there dirt cheap as i would from supporting a true BOTL that runs a cigar buisness out of passion
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