Cost to make a cigar?

[Rauchermann]

Fantastic story! I love do-it-yourself tales, but this had to be one of the most ambitious.

 

[Vegan702]

Anybody ever try one of these Don Yeyo cigars? They make them right here in Las Vegas. I saw the building yesterday as I was driving by, think I might stop in over the weekend and take a look. Apparently you can watch them roll the cigars, etc.

http://www.donyeyo.com/index.htm

 

[stroke]

Forgive me as I did not read this article intially. This was truly inspiring! I also read his following article which I encourage you to read as well! thanks for sharing this!

 

[n.olson]

kinda makes me want to try a virginia blue.

and grow my own tobacco! wonder how it would do in washington.....

HA!

 

[stroke]

kinda makes me want to try a virginia blue.

and grow my own tobacco! wonder how it would do in washington.....

HA!

Me too!

 

[indyrob]

Just like any other business out there.

When I was working in Indianapolis, the uniforms that the players wear on court & on field are relatively cheap...but still sell for upwards of $127 wholesale.

Don't even try to figure out how much it costs to build a car.

 

[Volusianator]

How much do you think it costs to make a cigar and have it brought into the US? Say the Tatuaje Red and Blacks that are getting released. I read where Pete said there were 5340 boxes of 10 being sent out, so assuming 50% of red and black at MSRP, that is $293,700 for red and $373,800 for black, for a total of $667,500. Since they are all made overseas, I assume labor is extremely cheap as is materials for the boxes, etc. So I am guessing around 20-25% for cost, materials, importing, etc., another 40% for Tatuaje net profit and the rest is the retailers profit. Not bad, around $250k profit for bringing in just 1 style cigar and they have many other lines also. I could be way off on my numbers as I know nothing about the business side of cigars, just wondering. I wonder if there is more profit in the limited edition cigars like the red and black or in the regular line like the P series?

Costs of:

Blending
Growing
Harvesting
Curing
Fermenting
Bands
Wood for boxes
Labor to make, assemble and decorate boxes
Box labels
Tooling of the shops
Shop supplies
Tubes
Cedar wrap inside tubes
Marketing
Distribution
Rollers
Sorters
Packagers
Electricity
Heat
Water
Other utilities
Insurance (buildings, liability, unemployment and much more)
Shipping
Office Employees payroll and benefits


This is just quickly off the top of my head, I'm sure this list could go on for quite some time, I can't even imagine what else goes into the cost of running such a business and yes, all those costs are added into the cost of "making a cigar." I'm sure Pete, the Fuentes, Padrons etc. do very well, but then again, they put out the capital to start these businesses, took the risk and built the business. Do I think it cost more to grow tobacco for Opus than it does for Consuerga, no, personally I do not, but then again I could be wrong, either way, if I want a cigar, I'll pay for it and am damn glad that guys like the above mentioned took the chance to create such masterpieces.

Keep up the good work, all of you, except for Gurkha, you can stop anytime! :thumbsup:

 

[Volusianator]

But just remember this too, Even after all is said and done if there wasn't a good profit margin in making cigars these companies wouldn't be doing it. There must be some decent profit in cigars look at the Fuente's spread in the Dom. Rep.

Same thing can be said for soda, tampons, automobiles, mittens and so forth. I'll never look at a sucessful company and spite them for their success.

 

[cvm4]

Thanks for covering ALL the bases Wade. I was reading through the thread and no one was mentioning the farming/harvesting aspect of tobacco. Which, IMO, is the most pivotal part. What if there's disease spread? Or a hurricane? A lot depends on it...

 

[Alwayslit]

Not to mention attorney and accountant fees. Profit margin I assume would be good but like with any business it is a lot of blood, sweat, and tears.

 

[bballbaby]

you wanna see how much profit is being made...look at pete's wardrobe. he wears the same jeans and the same black t-shirt everywhere!!!! the dude ain't got no money/

 

[bballbaby]

oh, and the fuentes...they wear those white shirts and those same hats. geesh, those things must be 30 years old by now!! i mean come on! every picture i see of them in CA is in the same damn field sniffing the same damn leaf wearing the same damn shirts and hats!!! they aint got no money neither!

 

[Private Yesman]

you wanna see how much profit is being made...look at pete's wardrobe. he wears the same jeans and the same black t-shirt everywhere!!!! the dude ain't got no money/

don't forget the bracelets and rings

 

[tatuaje]

don't forget the bracelets and rings

Those I got before the cigar company. I have to thank a real estate purchase for that money which also helped me start the cigar company.

I have money but my wife has more. That's why I'm always in the same outfit. LOL.

Truthfully, I think anyone that knows me understands that I'm pretty normal and don't like too many flashy things.

Vegan, everyone is in business to make money, All in this business most likely stay in it because we don't know anything else. Some do really well and some don't. I'm right in the middle and would need a job soon if my company folded tomorrow.

 

[openendstraight]

Well said Wade. I don't know of anyone who would willing to work every day for free.

 

[n.olson]

I'm right in the middle and would need a job soon if my company folded tomorrow.

sorry pete, i have about 100 guys i can count right now that won't let you retire, let alone let tatuaje fold!

 

[terrantheman]

Don't forget equipment, i.e. forklifts, pallet jacks, trucks and any other types of moving equipment... I've got it for my small biz!

Costs of:

Blending
Growing
Harvesting
Curing
Fermenting
Bands
Wood for boxes
Labor to make, assemble and decorate boxes
Box labels
Tooling of the shops
Shop supplies
Tubes
Cedar wrap inside tubes
Marketing
Distribution
Rollers
Sorters
Packagers
Electricity
Heat
Water
Other utilities
Insurance (buildings, liability, unemployment and much more)
Shipping
Office Employees payroll and benefits


This is just quickly off the top of my head, I'm sure this list could go on for quite some time, I can't even imagine what else goes into the cost of running such a business and yes, all those costs are added into the cost of "making a cigar." I'm sure Pete, the Fuentes, Padrons etc. do very well, but then again, they put out the capital to start these businesses, took the risk and built the business. Do I think it cost more to grow tobacco for Opus than it does for Consuerga, no, personally I do not, but then again I could be wrong, either way, if I want a cigar, I'll pay for it and am damn glad that guys like the above mentioned took the chance to create such masterpieces.

Keep up the good work, all of you, except for Gurkha, you can stop anytime! :thumbsup:

 

[ctaylor]

Those I got before the cigar company. I have to thank a real estate purchase for that money which also helped me start the cigar company.

I have money but my wife has more. That's why I'm always in the same outfit. LOL.

Truthfully, I think anyone that knows me understands that I'm pretty normal and don't like too many flashy things.

Vegan, everyone is in business to make money, All in this business most likely stay in it because we don't know anything else. Some do really well and some don't. I'm right in the middle and would need a job soon if my company folded tomorrow.

I don't know of any other industry where the owner/creator of a product interacts so regularly and willingly with its customers. In most cases owners will avoid customers at all costs. This still amazes me how grounded and in touch some of the cigar co. owners are.

I'm not so sure you are in the 'middle' and I wouldn't worry about looking for a job anytime soon. :hysterica

 

[Vegan702]

I think there are many, many people who would be in the same boat Pete. If I ever lost my appraisal license, I don't know what I would do. In my adult life I was in the USMC for 10 years, worked 3 years as a network admin for the Dept. of Interior and the last 8 years as a real estate appraiser. I don't know anything about computers anymore, technology flew by me and aircraft mechanics (job in the USMC) don't make nearly enough money to pay my bills.

I can honestly say Pete, your cigars are the first that have made me say "WOW", and I purchase them whenever I can. I am definitely a Tatuaje whore. Keep up the good work!

 

[Mitch]

Before we start calculating profits, you need to understand risks. Almost all start up bussinesses fail withing five years and there is no way for anyone to figure out if they have the next pet rock craze that will make them millions or will just blow their life savings for nothing but agrivation. If it were easy and witout risk, evenone would do it.