B&M Pricing

[KidRock]

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.

[bobarian]

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

[Hem]

I do appreciate the 10% and he takes great care of his customers, one of the best B&M owners I have ever met without a doubt. A couple of weeks ago at checkout he asks me if I have tried a couple of cigars (El Tiante and the other name slips my memory) I was unfamiliar with, when I said no he grabbed them and threw them in my baggy for free. Absolutely a place I will continue to go to and tell my friends about!

I had just never seen sticks like that in person and wondered if the pricing was the same all around. Now I see that the idea of a set price on HTF cigars is relative at best. Appreciate the insight guys and no Pektel, I didn't see any Franks in there but I know he takes phone orders so if anyone is seriously interested in some of his stuff just let me know and I'll shoot you his number.

[Bill86]

Originally Posted by pnoon

On a sample of one?

I'm not saying the Drac is good or bad. I've never had one. I just don't see the logic in drawing conclusions on a sample of a single stick.

You do make a good point, but I mean a ~$15 stick has to suck pretty damn badly for me to put it down half way. I might have actually tossed it quicker thinking about it. I just kept thinking why do people like these? Usually I try to tough it through, even to the point of sickness , just in case it goes somewhere. But there was NOTHING there. Air...musty leathery air.

That and I'm also basing my opinion on the general feedback of it being a lackluster "monster release" so I guess you can say I borrowed everyone else's opinion as well when making my conclusion. I can prove this by the fact that it is the least gouged Monster release (Franks are now widely accepted as $30-$35 sticks. Boris can still get $23-$25. Face/Wolfy and Drac are still stuck at release prices, maybe a bit more if you're desperate.)

So I guess my methods are probably a bit sketchy but I usually get the desired result despite my often poor ways of going at it. I probably should explain some of my posts a bit more thoroughly.

I do know when I taste a quality cigar, I can't guarantee it's for me or something I like but I can at least acknowledge why some people would. This was not it.

Originally Posted by pektel

while i understand what peter is saying, i'd have to draw a proverbial line in the sand when it comes to these highly coveted tat monsters. at the sheer exclusivity and supposed quality of those cigars, one should expect a similar experience out of each stick. is that the case? dunno. never smoked one either. but when i pick up something like a behike, i never get a 'bad stick'. and i don't expect to, based on production numbers and implied quality.
Posted via Mobile Device

That is also exactly the point, they are a HUGE hype machine, and I have to tip my hat to Pete when he thought up this scheme. How one could release half good and half so-so/bad sticks and generate so much insanity.....he needs to be working at a large marketing firm he could be making A LOT more doing that.

You sir have better luck then me. I was not impressed. At least now, I will admit there was something there....but maybe in 3-5 years. Right now I couldn't imagine having paid ~$65 or so for those 2 cigars. They weren't worth it.....yet. Now I keep hearing the 52's are better but I'll wait till I can get a 3 year old box to do further testing. I refuse to smoke another "fresh" Behike.

[pektel]

Originally Posted by Bill86

You sir have better luck then me. I was not impressed. At least now, I will admit there was something there....but maybe in 3-5 years. Right now I couldn't imagine having paid ~$65 or so for those 2 cigars. They weren't worth it.....yet. Now I keep hearing the 52's are better but I'll wait till I can get a 3 year old box to do further testing. I refuse to smoke another "fresh" Behike.

The only Behikes I've smoked have been early 2010's. Were they STELLAR? Nope. They were very good though. Not for the price they command either, but I've never had a BAD one that I would have to set down. I was just attributing the less than stellar experience to my goat palate. And diff'rent strokes. Most people seem to like the 52 the best, but I prefer the 54.

[AlohaStyle]

Compare the gouged pricing to what you bought... a Tat black tubo's MSRP is $14/cigar. You paid $11. So you actually got a good deal.

[jluck]

Hell...A local "B&M"to me (actually a quicky mart that sells meth pipes two feet down from there "humidor") Has Ashtons for $30 and kuba-kuba's in the same case for $15....I chuckle, I leave...easy for me.

[Blak Smyth]

When I was in California last year I saw an OPusX Lancero Coffin for $60.00

[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

[CigarNut]

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

[icehog3]

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.

[Starscream]

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.

[kelmac07]

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!!

[lenguamor]

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.