B&M Pricing - Page 2 - Cigar Asylum Cigar Forum

Originally Posted by CigarNut:
Not sure that I agree with this. A Retail store costs a lot more than an Internet-Only business.
You have to have a nice looking store rather than a warehouse

You have to pay sales people -- who have to look nice and have some experience with cigars -- rather than a stock person in a warehouse**

You need to be able to handle cash

You need humifiied display cases rather than humidified bulk storage

And so on...

Anything (not just cigars) you purchase at a B&M store is going to cost more -- that's the whole premise behind Internet businesses. They can sell for less because their costs are lower.

Just my :-)

(** I know that some stores do not have experienced help but I think that they all desire experienced help)

All good points. I know price is important to people, but if that is all you value then one should only order via mail order/internet. If you enjoy the ability to look at your cigars before purchase, have a place to relax, camaraderie, etc then paying extra isnt so bad. Of course, there is a line when there is a premium due to the owners costs and when the owner is just gouging. :-)
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I so hope that one day I can comprehensively evaluate the quality and ageability (is that a word?) on sampling a single cigar.
Posted via Mobile Device
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Fair is relative, as Peter said.

The most expensive of Opus' current releases is around $75; how much would you expect this guy to sell those for after he invested in acquiring some, keeping them in good conditions, carrying the inventory costs, etc?

It might seem expensive to you and me, working stiffs, if we saw them in his case for $99 a year from now, but that's a matter of perspective.
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Originally Posted by Fia:
All good points. I know price is important to people, but if that is all you value then one should only order via mail order/internet. If you enjoy the ability to look at your cigars before purchase, have a place to relax, camaraderie, etc then paying extra isnt so bad. Of course, there is a line when there is a premium due to the owners costs and when the owner is just gouging. :-)

Excellent point.

We risk Home Depot-ing ourselves right out of good B&Ms in this industry if we aren't careful.

It's all about balance.
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"rare" or "hard to find" cigars can also be over priced online. A b&m near my house always has Liga Privada No. 9's in stock for cheaper then what I can find online.
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Originally Posted by pnoon:
I so hope that one day I can comprehensively evaluate the quality and ageability (is that a word?) on sampling a single cigar.
Posted via Mobile Device

I can't do it... When I purchase a new cigar I always get two or three of the exact same stick. I usually can't tell how much I like a stick in just one smoke. Further, there are times where you just get a bad stick and I want to make sure whether it's a single bad stick or if I really don't like the particular marca/vitola.

Just my :-)
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Originally Posted by CigarNut:
I can't do it... When I purchase a new cigar I always get two or three of the exact same stick. I usually can't tell how much I like a stick in just one smoke. Further, there are times where you just get a bad stick and I want to make sure whether it's a single bad stick or if I really don't like the particular marca/vitola.

Just my :-)

There are also cigars where the first one is good, so you buy a bunch...and the rest always suck. :-) :-)
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Originally Posted by icehog3:
There are also cigars where the first one is good, so you buy a bunch...and the rest always suck. :-) :-)

Been there, done that.:-)
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Originally Posted by icehog3:
There are also cigars where the first one is good, so you buy a bunch...and the rest always suck. :-) :-)

So true!! :-) :-)
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After working at a local BM this post is top notch! Good job my friend!

Originally Posted by Silound:
B&M shops are a strange beast. I know, I ran one for several years. Pricing is 100% undeniably at the sole discretion of the owner or manager. At the very least, as Peter said, the prices will reflect what it costs him to stay in business. At the most, whatever wild hairs or whims he has can be reflected in the price as well.

I will say this about discounts though...

To a buyer, a 10% discount may seem kind of weak, I agree. I used to think 10% was a joke, I mean it barely covered sales tax, right? But then I did the math, and suddenly realized I was VERY wrong.

To give an example:

In LA, cigars are taxed at 20% of invoice cost. So take the invoice cost per stick (minus SCHIP) and multiply it by 2.20 (known as keystone markup, or 100% markup), then re-add the SCHIP tax to find out the final price. So if the invoice cost is $4.90 per cigar (SCHIP included):

4.90 - 0.40 = 4.50/cigar
(4.50 cost x 2.20) + 0.40 = $10.30/cigar before sales tax and discount
10.30 * 0.90 = $9.27/cigar after discount before sales tax

Now considering the owner paid 4.50 for the cigar, and 1.30 in combined taxes:

9.27 - 4.50 - 0.90 - 0.40 = $3.47

The owner has taken a staggering 23% reduction in his or her profit BEFORE even paying any bills.

So yes, a 10% discount is a LOT of discount for a B&M to give out. If everyone got that 10% on everything, the shop would only be pulling in 77% of the total gross profit available, which is a huge loss for any business. And remember that the government isn't going to give the owner a 10% discount on taxes. The landlord and utility companies aren't going to give 10% off rent and power. That 10% comes entirely out of his profit margin.

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Everyone knows that B&M's have better cigars so they can charge a premium!

:-)
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Originally Posted by pnoon:
I just don't see the logic in drawing conclusions on a sample of a single stick.
:-)

Aw, Come on, I do it all the time.

Remember OP that the measure of what a cigar is worth to a particular B&M is what he or she feels the
market will bear. There is almost always a buyer for an item like those, it just might take some time.
And sooner or later the two curves of price and time DO intersect. At least with habanos.

Remember also that a lot of these HTF items in stores might as well be museum pieces and are often
priced that way.
.
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Personally I honestly believe it can go both ways. There is a local cigar shop that DOES NOT allow you to sit down and smoke their cigars. There is no smoking anywhere in the shop. You are expected to buy your sticks, and leave. I only go to this shop when I want to sample something (read buy three of) before I buy a box online IF my local sit down and smoke shop doesn't have it in stock. Surprisingly, the owner of this shop is the first to complain about "internet sales" stealing their "business".

When I buy a cigar at a B&M, it is for the community. No community = No sale. Its that simple for me. I have DRASTICALLY cut back on visiting local shops because I believe that they price gouge. The community has gone away.

Just my :-) .
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