danthebugman
BoM Nov '10
Got an e-mail from CI today. Seems that CAO is upping their prices. Was wondering if anyone had any other info on this or is it perhaps just a CI marketing gimmick :dunno:?
Dan
Dan
CAO Price Increase
- Thread starter danthebugman
- Start date
thebayratt
Satori's Dad "NTA_Shawn"
Alot of companies have gone up; Camacho, LFD etc... it was only a matter of time.
I got the same email and I immediately thought it was a gimmick....but who knows? Maybe they are raising the prices. I haven't seen anything else out there on it though other the CI email I got.
thegoldenmackid
Why Can't I be a Lancero?
Docbp87
Smoke Into Oblivion
Shhh... Don't give them any ideas!
thegoldenmackid
Why Can't I be a Lancero?
Pretty sure Fuente went up after SCHIP? I know Perdomo did and then went back down and Pete absorbed it.
Price increases are a fact of life... it is a simple choice either you make the product lower quality or you increase the price.
Trust me, no manufacturer likes to increase prices. We are always worried about it impacting sales, the prob is if you don't you find yourself being squeezed. Almost ALL price increase are an attempt to recover margin lost by the escalation of costs, they seldom are about making more.
Fwiw, cigars like AyC was once a premium, handmade using Clear Havana filler - it was the Opus X of its day. But the maker decided to not raise the price, so instead every year they made it a little bit less quality - a decade plus later it was no longer even close to the same cigar.
That being said, expect a price increase from us to on some SKUs... <sigh>
At least I tell you the truth...
BR,
Steve
Prez, Drew Estate
Trust me, no manufacturer likes to increase prices. We are always worried about it impacting sales, the prob is if you don't you find yourself being squeezed. Almost ALL price increase are an attempt to recover margin lost by the escalation of costs, they seldom are about making more.
Fwiw, cigars like AyC was once a premium, handmade using Clear Havana filler - it was the Opus X of its day. But the maker decided to not raise the price, so instead every year they made it a little bit less quality - a decade plus later it was no longer even close to the same cigar.
That being said, expect a price increase from us to on some SKUs... <sigh>
At least I tell you the truth...
BR,
Steve
Prez, Drew Estate
cmhicksusmc
Corporal/USMC
ignorant liberal legislation:angryteet
njstone
BoM January 2010
Yes, the American Left is trying it's best to squeeze the cigar market out of existance.
Cost of production is increasing as well. I for one am not against paying the Nicaraguan workers more ... they deserve it, and it's good for the whole country.
Cost of production is increasing as well. I for one am not against paying the Nicaraguan workers more ... they deserve it, and it's good for the whole country.
danthebugman
BoM Nov '10
My original question was really more seeing if CI was trying to run some marketing gimmick. I understand that prices do go up and why...honestly if CAO is really upping their prices I'm a little relieved as that means they decided to go the opposite of lowering their quality...still peeved they axed the Brazilia Piranha :argh:.
Dan
Dan
thegoldenmackid
Why Can't I be a Lancero?
danthebugman
BoM Nov '10
Bingo, that's what I was looking for...thanks :thumbsup:.
Dan
Dan
thegoldenmackid
Why Can't I be a Lancero?
That was after statements including:
-No prices aren't going up
-No prices are going up only for CI
lol. bullshit.
Dowjr1: Not sure if that question was regarding CAO prices which I can not speak about intelligently - don't know their business.
If it was meant why would DE be increasing some of our prices on a SKU to SKU basis, it is directly due to increase costs - almost all of which is comprised of tobacco and labor expenses going up.
Like I said before, nobody ever wants costs and/or prices to rise - it is counterproductive to what we do, but sadly we have to deal with the reality of the situation.
If I had to name one overwhelming significant factor it would be rising energy costs... energy costs drive everything - fertilizer for the crops, logistics expenses of transporting tobacco, cigars and packaging internationally both in and out of Nica and its dramatic impact on the base cost of the food products which all of our workers must buy to eat.
There are many factors, but escalating energy costs are definitely the catalyst for much of the recent inflation imo. :<
BR,
Steve Saka
Prez, Drew Estate