Narrow Ring Gauge Practicalities

[ssaka]

@StogieNinja. Ok, that makes sense. I don't particularly mind when people give their vitolas a name because I think some of them are clever and some even elegant. I do, however, wish there would be a bigger trend towards smaller ring gauge cigars.

I appropriated this comment from another thread to introduce a separate discussion.

The biggest issue with smaller ring gauge cigars is that they cost nearly as much as the larger ring gauge formats to produce, yet consumers feel as though they should be significantly less expensive at the retail counter given that a double corona affords the smoker an hour plus smoking experience where as the typical corona is 35 minutes or so. However, as a general rule of thumb the production costs between a corona vs. a double corona ranges from only 15% to 18% in true cost.

When made as part of a entire line of vitolas within a given brand/blend their cost are amortized, i.e.. you charge proportionally more for the larger format vs. the smaller format which also allows for better utilization of the shorter leaves and consumers are okay with the $7 corona vs the $12 double corona. But when made as dedicated blend intended to be enjoyed in narrower format, such as the Dirty Rat was, there is no where to allocate this higher cost except to the consumer.

The only way to truly make great blends that are designed to be smoked in the smaller formats is for them to cost more. A few very serious cigar consumers are willing to pay for this, but most cigar smokers are not. Even when you explain the economics to them, they are doubtful of the validity of the position as there are countless examples of smaller formats being sold for significantly less in the marketplace.

And when you do so as a maker you get abused by consumers for charging too much, so there really is very little incentive for cigar makers to make these 38 to 46 ring gauge sticks.

The inverse of this is true, you make a much better margin and consumers feel like they are getting more for their money when you produce 60 ring and up monsters. Consumers are happier with the economics of their purchase and makers happier with their margin. So making and selling big formats is much easier.

It is a shame when you are like me and enjoy a well made sub-46 ring smoke, but reality is reality.

That being said, while I am comfortable defending this position from a fact based approach, I understand why most factory, sales teams and retailers are not. And the end result is a marketplace with very few world class narrow ring gauge format options.

BR,

STS

 

[jasonsbeer]

If I'm interpreting correctly, the cost is in the labor of manufacture, not the materials. This is true of many things. The primary cost is in making it happen, not the materials that are used to make it happen.

 

[ssaka]

To add another tidbit to this discussion: When it comes to utilizing the shorter leaves, as a maker you will receive far more margin producing them into robustos rather than coronas.

Yet another fiscal hurdle to the manufacture of smaller ring formats. :/

STS

 

[BenvolioMustDie]

A good little read that. I, like most people around here it would seem, prefer a smaller ring gauge and I don't mind paying a bit extra for a decent Corona, Lonsdale, Lance.
But, as you say the money is in the many. Thanks for sharing that.

 

[THEMISCHMAN]

Steve,

That was an awesome explanation. I can see your point regarding consumers feeling like they are getting "the best bang for their buck" with a larger ring gauge cigar as opposed to a smaller one.

 

[ssaka]

If I'm interpreting correctly, the cost is in the labor of manufacture, not the materials. This is true of many things. The primary cost is in making it happen, not the materials that are used to make it happen.

Think of it like making a box.

All boxes have six sides, the same number of cuts, the same number of joints, etc… the only difference is the linear board feet of material needed. So making a small box is no different than making a large box, an argument can be made that it actually requires more effort to make the small box given that more precision is required.

This is true of cigars, creating a narrow ring bunch with any complexity actual requires more attention to detail and skilled labor. Often you have to split whole filler leaves into half or smaller widths and their placement within the bunch is technically more precise and critical. Even the simple act of rotating the bunch within the mold requires more time and attention as it is much easier to twist the narrower bunch which will result in a tight draw when rotating the cigar 90 degrees within the molds. So it actually takes longer and by a more skilled bunchero to produce a narrow ring gauge format.

STS

 

[Cigarth Vader]

Great info @ssaka I was curious about this! Thanks for offering up some insight to us. I'm definitely right there with some brothers on preferring smaller RG smokes and willing to spend the coin for a quality product.

 

[bigbill72]

Yea I had no clue

 

[joe45]

Great post, Steve. Thanks for all the information.

 

[daleo8803]

Awesome info!! It makes good since to me. But I will pay more for a lance then a rubusto because I know it will taste better.

 

[Sirspanksalot]

Learning something new everyday!

 

[siakingsport]

Great info! As a lover of coronas and petit coronas, this is great to know.

 

[Ga Gator]

One of my favorite small cigars is priced the same as the other vitola in the line. I previously had a hard time shelling out the same money that the Toro or Churchill cost for a much smaller cigar. It now makes sense.

 

[eastcoast paul]

I have not tried a lance yet but enjoy a corona and lonsdale over a 60rg anyday.

 

[Scroni]

I always appreciate these little nuggets of information. Thank you, Steve!

 

[tedp]

When I got serious about cigars a few years ago, I always bought by looking at the price compared to the size. The bigger RG seemed like a better deal. As one gains experience, you find that the smaller size usually translates into more flavor. Thanks Steve for the manufacturers perspective!

 

[Smoqman]

Steve,

Your willingness to share your perspective and intimate knowledge of the cigar biz is something I gleen much from, every time you hit the keyboard.

Gracias Hermano.

 

[stukibuilt]

Thanks for posting this, Steve. I've been one to bitch in the past about all the fat cigars coming out and the lack of quality smaller RG smokes on the market. To be honest I don't think I ever thought it this far through, and I obviously have no experience in cigar manufacturing to have led me to this. I sincerely appreciate your insight.

 

[Le Buzz]

Wouldn't having a wide assortment of ring gauges and lengths within each blend be more profitable and less wasteful than just having larger rg's across the entire line?

Arent there always thin and/or short pieces of leaf that are left over, and arent these used to make panatelas and petite coronas? I understand the economics are much better for a 60rg stick, but surely a petite lancero size has its upside too.

For example, by my calculations the volume of a petite lancero is about 39% that of a 6x60 gordo. That would mean more than twice the tobacco is used to make the fatty versus the PL's. This is not taking into account wrapper and binder leaf, as well as labor costs for rolling which I'm sure are substantial. But does a roller in a third world country like Nicaragua really get paid that much? Isn't growing and harvesting tobacco leaf (i.e., cost of raw material) fairly high as well?

Im not trying to argue with you, as you know infinitely more than me about the cigar business. Im just asking questions in hopes of keeping small rg sticks relevant.

 

[Deadman's Point]

I'm a bit unclear as to the use of your term amortized, but moreso confused at the comment about consumers' perception they get more for their money. I would assume the 'experienced' and somewhat fickle cigar smoking community (such as us here) purchase the majority of a maker's product line. I haven't heard a sole voice say we want a 60+ ring cigar. We buy boxes based on physical characteristics and smoking community recommendations. The 'layman' smoker buys singles based on salesman/publication recommendation, shelf presentation (fancy name included), and price if they're trying to impress.

I understand the higher profit margin, but the suggestion that larger rg cigars move at greater volumes at the desire of the consumer is perplexing.

Perhaps that's why I'm not in the business. Thanks for the insight.