you b&m's cigar pricing

[Tony-cl]

This may be a dumb question, but what do any of think about cigar markup? What is acceptable? $.50, $1, $2, or $10 per stick? How much more will you pay for something at your local b&m you can find online cheaper?

[tx_tuff]

Just because they are cheaper on line doesn't mean your B&M is marking them up! I try to buy most of my cigars from B&Ms in town, unless its something I can't find or just a freaking crazy deal!

[baboruger]

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

[DBCcigar]

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.

[matt3-cl]

All cigar stores markup their product B&M as well as online. The TAX is what kills ya. I don't mind paying a small premium at a B&M as long as it's not obscene.

[DBCcigar]

ALL STORE have a markup. No markup = Not in business

It's just odd how this store s $10, and a mile up the street, the same cigar is $12.50.

[The EVP]

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...)

[Matt257]

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 Just my 0.02

[Fatmandu]

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.

[CHRIS7891011]

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.

[GolfNut]

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.

[nativetexan_1]

$100.00 x 1.73 is a simple formula also. I'd rather they use this one.

[goyankees]

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.

[GolfNut]

Originally Posted by nyisles

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.

$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.

[goyankees]

A ;lot of local places give 10-15% off on box sales, but I think most local neighborhood b&m's arent looking for the box sale. They cater to the sticks person.