Thoughts on B&M's that charge over MSRP

[KookaRocha]

Just as the title says, what are your thoughts or opinions about continuing patronage at B&M's that overcharge...significantly.

I ask this because I bought a tin of Davidoff Nicaraguans the other day and it wasn't until I looked at the receipt that made me think that they were overpriced, even for Davidoff's. Turns out the MSRP on those guys are $29. This place charged me $34.99, that's almost a $6 markup - in TX nonetheless where retailers pay significantly less taxes on cigars than neighboring NM.

 

[PamunkeyHub]

It's a free country... vote with your wallet.

 

[bigbill72]

Thats one of the reasons i shop at famous and not CI. They are always overpriced.

 

[atbat82]

I find it depends on the B&M. If they're offering a lounge, TVs, parking (in a city), maybe drinks, there's a lot of overhead to cover. But if they're just a run of the mill shop, then I would probably not be back. Lounges are tough, because guys will come in, buy a $8 cigar , sit, and shoot the breeze for a couple hours. Nothing wrong with it, but it's tough to make a buck that way. I probably wouldn't frequent any place that charged over MSRP, but I wouldn't automatically write it off, either.

 

[KookaRocha]

@atbat82 All those amenities I can understand, but this is in El Paso - there is no lounge, no smoking indoors, nothing. It's a run of the mill shop with a relatively small humidor, and (in my opinion) a relatively lame selection. I already plan on voting with my wallet @PamunkeyHub and not returning, especially considering the shopkeeper isn't exactly the most helpful nor pleasant gentleman. Sometimes I don't mind if a place is overpriced, but they certainly better make it up through excellent customer service and knowledge. I've gone twice, both times I asked if they had a certain cigar, they didn't but he didn't even suggest that he may try for me. The second time i went in with more time to browse, I easily spent 20 minutes in the humidor and the same man barely spoke as I left, let alone tried making recommendations or even trying to upsell.

I may be being critical, I did 10 years of retail management and I'm a big stickler for good selection and excellent service but I think I'm judging them fairly.

 

[ChefBoyRG54]

Should check out the ship in el paso with the lounge downtown by the baseball stadium. Great owner with reasonable prices when I was there

 

[atbat82]

@atbat82 All those amenities I can understand, but this is in El Paso - there is no lounge, no smoking indoors, nothing. It's a run of the mill shop with a relatively small humidor, and (in my opinion) a relatively lame selection. I already plan on voting with my wallet @PamunkeyHub and not returning, especially considering the shopkeeper isn't exactly the most helpful nor pleasant gentleman. Sometimes I don't mind if a place is overpriced, but they certainly better make it up through excellent customer service and knowledge. I've gone twice, both times I asked if they had a certain cigar, they didn't but he didn't even suggest that he may try for me. The second time i went in with more time to browse, I easily spent 20 minutes in the humidor and the same man barely spoke as I left, let alone tried making recommendations or even trying to upsell.

I may be being critical, I did 10 years of retail management and I'm a big stickler for good selection and excellent service but I think I'm judging them fairly.

Doesn't sound like a place if go back to. I generally try to support B&Ms, but sounds like you get better service from Famous or SmallBatch. The whole point of a local is that customer service.

 

[redneck_toy]

Not all people are people-person oriented, even in sales as strange as that sounds. Like has been said earlier, vote with your wallet. As much as I like the mom and pop stores, every B&M here is over msrp, by a significant amount. Don't mind buying a stick here or there, but when you can get the same box of smokes online for $35.00 cheaper, to me, it's a no-brainer (AF short stories in this particular instance, and that was WITH their "box" discount)
Another instance is the Fuente between the lines. Same shop- $21.00 each. Can be had online sub $15

 

[Sp@rky426]

What are we basing our prices on? Online retailers, if so don't they have more bulk to drive down prices, then you don't make a minimum purchase and you pay shipping so I would think it would be close to the same. Maybe wrong. Also, as was stated where I frequent there is a very nice lounge that I frequent yet only buy singles to enjoy while I'm there, cheap drinks and good company. You do make very valid points in both your posts though,I can't relate as my circumstances aren't the same.

 

[danmdevries]

The experience is why I'll buy at a shop, if they dont provide any better experience over ordering online and smoking in the garage or on my deck, they don't get any of my monies.

I frequent or at least used to frequent a shop here that doesn't have the greatest selection, but it's enough. They've got a nice lounge with a few tv's, halfway decent ventilation, and mostly friendly but inexperienced staff that can help you find something specific, but not much in the way of suggestions based on what you like.

They're expensive for the most part but some things are priced competitively. Most of their high end stock is favorably priced where I could buy 5 online plus shipping for maybe a couple bucks savings. But the regular stuff I can get for $5 or less online is 10-12 bucks each.

So, when I go, its always a $100 trip. But I get a fist full of premiums at a fair price, a comfy chair and tv and that makes it worth it to me. But when I first got into cigars, I didn't know a Brickhouse wasn't really a $10 smoke... their stock has improved over time, they take suggestions from the regulars. That makes it worth a little extra.

 

[BMack]

A small shop has to make more per cigar because of the volume they sell at plus their overhead. It's a lot cheaper to have a warehouse humidor than to have a well-presented walk-in designed for customers. Plus, to have a successful shop you have to have a good location, that costs money...a warehouse, a large store like a Famous or CI and people will go out of their way for.

That being said, occasionally shops are just pricey...Then it's up to you if their services are worth your money. Keep in mind, you also get it right away, there's something to be said about convenience...that's how 7-Eleven, Starbucks, etc gets away with their prices.

 

[Sirspanksalot]

The closest bm to me charged a lot, they have cheap CI stuff and sell it for the sites msrp. Ave Maries are $10+ all the ggurkas are expensive as shit, 858 are nearly 9 dollars. So needless to say, I never go anymore.

 

[Yarddog]

I've told this story several times, and I'll tell it again...kinda sums it up for me. I moved to my present house in the fall of 2011, and discovered, joyfully at the time, that I was about a mile from a well stocked 24/7/365 cigar store/newsstand. Great. I'm close enough where I don't need a humidor, I'll just pick up a stick or two when I need 'em, all is well.

Flash forward to a little over a year ago, when I discovered buying cigars on line! Zounds! I could buy sticks that made me very happy for $2-4 a stick, where I was paying $10-12 at the B&M down the street. Part of that was the natural price savings that on-line buying in bulk brings, part of it was simply discovering less expensive ceegars that I liked as well as or better than the expensive ones I was getting down the street.

Keep in mind that I don't give one red rip about 'cigar lounges' or 'ambiance' or anything like that...hell, I like smokin' in my spa, with my neighbors, fishin' in the Sierras...who wants to smoke cigars with people I don't know or care about?

Then I began to notice that the humidor began to have many empty boxes, and the magazines weren't up to date, and the store generally is beginning to look ragtag. So, now when I want a treat, I'll drop in for an Illusione Fume de Amour, but I know when they run out, that's it...I doubt that they'll restock. Something's up with the ownership.

Or, I can drive all the way across town...and I have named this dump of a town 'Traffic Light Hell'...to Stevenson Ranch, and get my treats...when I'm in a rare mood...one of the owners is a kind of a hard-sell type of guy, the other is more laid back...

As much as I like to support brick and mortar businesses, and as much as I understand the concept of margins vs overhead, hey...most of the time I think about MY problems...not theirs...so, the price savings and convenience is such that it just makes more sense for me to buy on-line...Hey, when I buy from JR Cigar on a Friday, the cigars are waiting for me on Monday evening when I get home! And that's with either free shipping or the least expensive shipping option.

Tell ya what...I'd rather just get on line and order my box of CAO Brazilia GOLs than drive a mile down the street against no shit, ten traffic lights in that short mile...and pay $3.73 a stick versus $9.99 for the same cigar a short way away. If I got six bux of customer service in return, maybe I would think that was a pretty good quid pro quo...but that ain't happening!

 

[CVAC085]

At my local B&M, I always will try to buy at least 1 single cigar in my trip there. To the 2 I have within 15 minutes from me. At one, where I frequent most, my friend and I have a locker there that we split and rent per year. Perks: we store our cigars there in the humidified locker as well as our liquor stash.

Sadly, I believe with the (cue the sarcasm) WONDERFUL NY laws in place they're no longer able to have full serve bars in a cigar lounge. Might even be a county law, I'm not too sure. So that's a loss to the boss man off the bat. So he has to make it up somehow. In this case lockers and a bit of a little more expensive smoke.

Honestly, I buy on-line and locally at the B&M's. I love the service and knowledge from both of his employees who I make sure are there when I try to go. Right now it's just the 2 of them working crazy hours. They're the ones that make it enjoyable. And even know me on a first name basis. Of course we break balls too since one of them I've known for quite a few years at the other shop I used to frequent.

If I see something I like, I'll grab a price and ask for box prices, since as a locker "owner" we get discounts on boxes and mix-n-match boxes at the lounge. It doesn't hurt to ask even if it's too expensive and you then decide on the on-line route.

In my case, I shop both in shop and on-line. After all, there's cigar lounges far and few in some places too. I'm lucky to have 2 of them nearby!

 

[eastcoast paul]

In the "city" i live in there are 3 places i can buy cigars. 2 i will not set foot in anymore, they are attached to grocery stores and the workers/manager have no clue. The rh is 35-45 at both places and the last time i was there i picked up a cohiba siglo 1 and the wrapper was so dry it almost fell off and it was hard as a rock. The 3rd place has better rh but the cost of a macanudo was 18 plus tax and a siglo 1 was 25 plus tax. There is no such thing as a smokking lounge anywhere around here either. If it wasn't for online i would have no cigars.

 

[Conan the Cigarbarian]

it really depends honestly. The B&M I go to has a lot of cigars that are at or even under the MSRP, but on the flipside they also have a few brands that are a little over MSRP. I guess it has everything to do with supply and demand.

 

[ssaka]

Here is my two cents fwiw, I am ok with over MSRP in these circumstances:
1) High Local Taxes - regretfully taxes just simply have to be added as they are a hard unavoidable cost.
2) High Op Cost Area - case in point, you run a shop in Manhattan then you simply must charge more on average. Most shops in these type of areas tend to focus on higher pricepoint sku's so as to allow them a greater dollar per transaction so they do not have to jump the margin as high.
3) High End Lounge - not talking a cigar store with a lounge area, but rather a lounge/bar with a humidor.

BR,

STS

 

[hdroadglide]

exactly what steve said. if there is a reason for their prices to be higher (higher cost of business) then it's their right to make a living. however, if it is purely gouging, i don't imagine they will remain in business for very long

 

[Gjoconnell]

Just as the title says, what are your thoughts or opinions about continuing patronage at B&M's that overcharge...significantly.

I ask this because I bought a tin of Davidoff Nicaraguans the other day and it wasn't until I looked at the receipt that made me think that they were overpriced, even for Davidoff's. Turns out the MSRP on those guys are $29. This place charged me $34.99, that's almost a $6 markup - in TX nonetheless where retailers pay significantly less taxes on cigars than neighboring NM.

I deal with it by walking out the door with nothing. If enough people do that the problem solves itself.