i wont name any specific sites, but im sure you all know a few...anyways, I'm curious how they stay in business selling cigars like opus x at two times msrp, sometimes more? so what im asking is, do you guys buy where price gouging occurs or walk away....and how much is the most you've gone over msrp on a purchase, could be box/5pk/singles, whatever....give me some feedback...this stuff really angers me, especially doing crappy stuff like this to customers around Christmas, bullcrap!
price gouging!
- Thread starter tom1026
- Start date
Personally, I walk. They are counting on most's "gotta have it now" attitude and there are plenty out there who have it. Those businesses selling at the 2x MSRP know they have a sought-after premium product with low production numbers, and bank on the fact they can get this price from those who have to have it now.
I'm fortunate that a few B&M's in my area receive Opus so the pricing in this area is at the MSRP.
I'm fortunate that a few B&M's in my area receive Opus so the pricing in this area is at the MSRP.
I price shop. I don't normally have one specific cigar that I need so I can "browse". I have one primary retailer that I prefer, but I'll look around for a better deal. I prefer the cigar stalker so I can keep an eye on the cigar of the day, jams, and the monster. I understand that business is business and wouldn't walk away from a retailer unless they are consistantly price gouging. I understand that if there's a high demand that prices are subject to rise. I do not have a B&M so I am reliant upon online retailers.
Our B&M in Ventura got in all the fuente year end product, Anejos, SHarks etc. He marked them up 300%. Said that was the going rate according to cigars.com. He is actually selling a few at these prices. Not me dude. I'll buy elsewhere.
Kidrock
Smoking 50RG Less W/Farai
openendstraight
Grand Corona
When most people think MSRP, they don't take into consideration that states tabacco tax. A cigar that has a MSRP of $10 will cost more in some states than in others due to the difference in each states tabacco tax.
Having said that I will pay slightly over MSRP at a B&M.
Having said that I will pay slightly over MSRP at a B&M.
I wont say what store it is. But its out on long island and the prices are crazy high. Great cigars but everything they have is over msrp. But I do go sometimes because they have cigars that you cant get any other place.
I am talking $28 for a small Anejo
Nah. It is out and out gouging. I talked to Bob the owner when the sticks came in and looked at MSRP plus CA tax. Prices were still reasonable. He had an employee look them up on the internet and find the highest price out there and marked them up. Sad thing is people are buying them. Not a lot but they are going. Last year they would sell them at MSRP to regulars but this year greed has set in. Sad.
To figure out if a cigar is being gouged simply look at the following:
1. Most shops keystone the prices. That is to say double the invoice price. Typically that keystone price is MSRP with some exceptions.
2. Take the State tobacco tax and figure out what it would be I am not sure if the tobacco tax is on the invoice price or keystoned price)
3. Figure out the sales tax
4. Add it all together.
For some states there is a 150% tobacco tax, other it is 0.01c per cigar (Love Texas)
Take an #46 Anejo for example. MSRP on Vitolas.net is $207
So, assuming the tobacco tax is on the invoice price:
150% = (103.5 x 1.5) = 155.25 tobacco tax. so msrp + 155.25 = 362.25 + 7% sales tax = 387.61 = 15.50 per stick almost double msrp
The same cigar with a 0.01 cent tax is 8.87 a stick with the same sales tax
No there are defiantly price gougers out there. One of the cheapest sites out there for all other cigars has the Opus and Anejo jacked way up. Take it all into account though to see how much they are really screwing with you.
Also, go into your local B&M and become a good customer, talk with the owner, make friends. When you build those relationships, you will not have such bad pricing at times.
I could very well be wrong on all of this, but it brings up interesting points nonetheless
1. Most shops keystone the prices. That is to say double the invoice price. Typically that keystone price is MSRP with some exceptions.
2. Take the State tobacco tax and figure out what it would be I am not sure if the tobacco tax is on the invoice price or keystoned price)
3. Figure out the sales tax
4. Add it all together.
For some states there is a 150% tobacco tax, other it is 0.01c per cigar (Love Texas)
Take an #46 Anejo for example. MSRP on Vitolas.net is $207
So, assuming the tobacco tax is on the invoice price:
150% = (103.5 x 1.5) = 155.25 tobacco tax. so msrp + 155.25 = 362.25 + 7% sales tax = 387.61 = 15.50 per stick almost double msrp
The same cigar with a 0.01 cent tax is 8.87 a stick with the same sales tax
No there are defiantly price gougers out there. One of the cheapest sites out there for all other cigars has the Opus and Anejo jacked way up. Take it all into account though to see how much they are really screwing with you.
Also, go into your local B&M and become a good customer, talk with the owner, make friends. When you build those relationships, you will not have such bad pricing at times.
I could very well be wrong on all of this, but it brings up interesting points nonetheless
n.olson
Veteran Eccentric
it's dirty and wrong. i personally think it's in bad form and walk, alot of those places i'll never even think of visiting again. the nearest B&M at my previous house had no less than a 50% mark up on everything, ashton, RP, anything and everything. needless to say, i never bought a thing from them.
Thankfully, my B&M basically sells everything at msrp. That's why they get way too much of my money. (God bless Texas.)
PLUSH
Some random brother
In order to price gouge, wouldn't there have to be a need for the product e.g. gas, food, or water. These are cigars we are talking about. Nothing that is needed, but sure wanted. Everyone needs to due their DD. I was recently looking for a new iron. I bought it 2 years ago for $50. They no longer make it, but I did find it on Amazon for $100 from a couple of vendors. the new model is $50, yet the old model is $100. Why? Because it is much better than the new model and I was only willing to pay $50 for the iron. Point being, were they gouging, not to me. There are plenty of irons out there, maybe not as good, but gets the job done. So, if you want the cigar that is $30, then buy it or walk away, someone else will buy it.
Jfire
BoM 9/9' 9/11' 8/12'
I wont take part in any of it.
It may seem like ass kissing but it really helps to also have a great B&M manager who can talk common sense into the owner. "Maybe we price them at this" "No we need to price at this because its the going rate and we need to take care of the regulars"
Thanks Tim!
Justin
It may seem like ass kissing but it really helps to also have a great B&M manager who can talk common sense into the owner. "Maybe we price them at this" "No we need to price at this because its the going rate and we need to take care of the regulars"
Thanks Tim!
Justin
One B&M sells them at the MSRP if not cheaper. Another one sells them at a 200 - 250% markup. While I walk from any price increase from anything, it doesn't bother me. If they are still selling them, then more power to them. They wouldn't do it if people weren't buying them. Price gouging has been going on for years and years.
I hustle with my local B&M even when they do sell at the MSRP.
I hustle with my local B&M even when they do sell at the MSRP.
Fuente doesn't allow FFOX vendors to sell the opus online. So the online stores you see selling the opus bought the sticks, for $10-20 depending on what size, and sell them at double the price because they know that no one else online would be able to undercut their price.