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Idea?

dpricenator

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I think what hurts the most, WigWam, is CA's 46% tax. That's 46% over MSRP. So the manufacturer says a particular cigar should sell for $10 a pop. Well in CA the lowest price possible is now $14.60. Then the B&M owner marks it up even more because his lease is so expensive in CA that it becomes a $16-$17 cigar.

In the retail clothing industry there is a 100% markup over wholesale. So when you buy a shirt for $40 it only cost that store $20 to put it on the shelf. Businesses are in it for the money, but the power of the internet has forced some retailers to lower prices, drop thier profit margins and some to go out of business.

Tuba is right though, if you don't like the price don't buy from that store. I can't and won't justify paying CA's Tax on cigars, when I can order online for a fractionof the price. Now when I want to go sit in the lounge I just suck it up and buy an $8 cigar for $13 bucks and enjoy an hour with out interuptions..
 

indyrob

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It's not unreasonable to expect 100% mark-up on retail. It makes it possible to pay for overhead and provide enough for profit to hopefully include improvements to an establishment.

Jewelry is worse. It has a 1000% mark-up. If you paid $1000 for a ring,necklace, earings, etc...the wholesale was about $100. i know it's rough spending the cash on a box of cigars but someone put everything they had on the line to open up the B&M so we could have a place to go hangout at.
 

jwintosh

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wouldn't it be nice if i could get my beer at cost. or my bourbon. or my wine. or my tenderloin. or my, or my, or my....
 

Angry Bill

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It's all about your choice. I have friends that own B&M's and I hang out there. If I come in and smopke a stick that I bring in, how can we expect them to survive? Loyalty is important to me. CA has the damn tax that is stupid, 46% sucks.

Folks need to do what they feel comfortable with.
 
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Premium cigars are luxury goods. Luxury goods are not necessities. If you don't want to spend the money or can't afford them, don't buy them. Or buy less expensive cigars.
 

CWS

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It sounds lik eyou are suggesting a co-op. A group formed with common interests to obtain volume purchase discounts. Great idea. The problem is the cigar companies chose to whom they will sell. For example, Padron requires pictures of the retail store and references. They also require a copy of your license. Some may sell to a co-op but I think most will protect their B&M's which is the bread and butter of their sales. I have worked with wholesalers before but the discount was not that great.

BTW - Fuente does not own Casa Fuente. It is owned by the Frey (spelling may be wrong) family that also runs many of the shops int he casinos. Fuente has a joint marketing agreement with them for the name and it is highly supported by the Fuente family for obvious reasons.
 
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BTW - Fuente does not own Casa Fuente. It is owned by the Frey (spelling may be wrong) family that also runs many of the shops int he casinos. Fuente has a joint marketing agreement with them for the name and it is highly supported by the Fuente family for obvious reasons.
Thanks for the clarification Chuck:thumbsup:

Here's hoping that tobacco taxes are lowered now that the President elect is an avid smoker..
 
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