Brick & mortar shop prices - a question

R

Rev2010

Maturing Primate
Recently I had posted about another topic and in the post complained about the prices a small local cigar shop was charging when I was seeing average online prices that equated to nearly half what I'm paying. I was told this is normal for brick & mortar stores.

So my question is, is this generally true for the bigger stores too? Or is this cause I'm buying single cigars rather than packs? Since we have an actual JR Cigar shop in Manhattan I was thinking about taking a walk over there and getting some single cigars but don't want to bother if I'm going to find that same highly jacked up prices. If that is the case I will just try ordering online. It's truly disappointing to see cigars I spent $13-$14 on going for like $6-$8 online via a 5 or 10 pack! But, since I'm still experimenting with different cigars I don't want to commit to a pack of all one type.


Rev.
 
you have to factor in your local tobacco taxes into the B&M prices. In NY/NJ.....that's quite a large chunk
 
[OT] Loki said:
you have to factor in your local tobacco taxes into the B&M prices. In NY/NJ.....that's quite a large chunk
Click to expand...

Doh! :sl I forgot about that! Thanks for waking me up haha. How do online stores factor it in, before checkout or something?



Rev.
 
Tax + personal service + place to smoke (hopefully)... there's a lot of factors, aside from the basic, bigger online place can sell for less and make profit
 
Actually, nevermind about the online tax question. I just checked the JR Cigars FAQ and it says we're responsible for the tax ourselves, so they don't collect taxes :)



Rev.
 
So, I'm still relatively new to cigar buying (just started a few months back). After I went to a couple B&M's a little farther from my house, I started exploring online because of the convenience (and of course, I'm always looking for a deal).

I did notice a discrepancy in pricing, mostly, I figured, because I'd normally be buying singles in the store vs. boxes online
(like you said) and everything's cheaper in bulk not to mention that there's virtually no overhead online (vs. rent the storeowners have to pay). I did find www.cigar.com to sell singles online, which was intriguing but their prices were, of course, a little higher, and closer to the prices of the B&M's. The site is great to do research on, though! Eh, I owe them a purchase for all the time I've spent on there checking stuff out.

And of course, there's the tax you have to pay in stores too.

So while I'm tempted by the seemingly slightly cheaper prices online (remember, there's shipping too!), I've found I've actually been making out pretty well by consistently going to a good, local B&M and of course, I'm supporting the local community and a guy who works damn hard to please his customers.

Locally, I have the option of 3 decent cigar stores, all with cigar lounges and a 4th that doesn't have a lounge. Fortunately, the best one is the one closest to my house (5 minutes away by car), otherwise I might cheat and buy some cigars online. However, I do get 'Best Buy Guide' coupons in the mail for 3 of the 4 every so often and that helps to make up the visible savings you might find online.

In fact, I visited my first B&M using a coupon for a free Calibri humidor with the purchase of $100 in cigars. A no-brainer. And while I try to be loyal and I have been back to this shop for a cigar event where I bought some more and then one more time to pick up some Acid Blondie's for my wife, the customer service and incredible deals I get at my favorite shop by me have won me over and have kept me off the internet (except for stalking CS).

I'm an easy target. Be nice, recommend cigars and throw free sh!t my way and have a nice cigar lounge and I'm yours. Huckleberry's by me is my B&M of choice. I went there first because of a coupon in the mail (I wasn't on any list) for 20% off a purchase over $40. Not bad! I know I ended up spending more than $40 and the owner, Boomer, threw in a free cutter, free lighter, matches & a 5-pack of 'Huckleberry' cigars he said he was testing out (they were great, by the way, whereever they were from).

I can't think of any business transaction I've entered into where I received this kind of customer service. And it happend the next time too. My wife and I went in to buy some cigars and I wanted to check out the Oliva Serie V and my wife wanted to check out a CAO 'Eileen's Dream' flavored. We sat in the beautiful lounge and smoked cigars we weren't even charged for. Of course we bought some cigars afterwards. It's good business savvy.

In addition to answering my many questions about cigars and recommending some great ones, Boomer gets involved with my community, another plus and why I support the store. He also puts on cigar nights at a neighborhood restaurant. I used another 20% coupon on a purchase of a travel humidor. Oh, and I receive points on every purchase. Once I hit a certain number of points, I get free stuff. And then I was informed that Huckleberry's is part of the 'Peninsula Privileges' program whereby members of the community get 20% off on every single purchase so I don't have to wait for a coupon to come in the mail.

So you can see how this good guy won me over. He deserves my business vs. the impersonal online shops. I'm not quite sure how he can survive giving me such great deals but darn it, I'm sticking with him. And I'm trying to turn everyone I know on to Huckleberry's.

Anyway, I'm not sure there are other B&M's like this, but I'm just saying that you've gotta find a great shop by you and develop a personal relationship with the owner. They take good care of their loyal people.

In NY, I've been to Barclay-Rex so far, up on Lex & 49th....nice, formal shop with a great walk-in humidor. I don't think there's a lounge but they recommended some nice cigars for me so I appreciated that. I'll go back when I'm back in NY but I'm not aware of the deals I get at home.
 
Rev2010 said:
So my question is, is this generally true for the bigger stores too? Or is this cause I'm buying single cigars rather than packs? Since we have an actual JR Cigar shop in Manhattan I was thinking about taking a walk over there and getting some single cigars but don't want to bother if I'm going to find that same highly jacked up prices. If that is the case I will just try ordering online. It's truly disappointing to see cigars I spent $13-$14 on going for like $6-$8 online via a 5 or 10 pack! But, since I'm still experimenting with different cigars I don't want to commit to a pack of all one type.


Rev.

rx2010 said:
Tax + personal service + place to smoke (hopefully)... there's a lot of factors, aside from the basic, bigger online place can sell for less and make profit
Click to expand...
Click to expand...

We have two JR Cigar shops within a 30 minute drive from here and they have a sweet set up with a complete smoke in shop, coffee, and the occasional sample. I enjoy my periodic stops/visits following a hard day at work. I love that place!:tu
 
Reverend, A lot of things factors into the B+M's (to me) that make it worth buying, including the mostly friendly staffs I have encountered and the ability to light one up right there and have some good conversation. And, like you stated, the ability to try singles before commiting to a larger purchase. :tu

bobarian said:
Plus 7-8.5% sales tax! Its brutal, but I still try to support my local shop with an occasional singles purchase. But boxes are out of the question!:hn
Click to expand...
:tpd:My fiance is from near LA originally and I had the chance to go to a B+M with my future father-in-law and smoke a single or two and I about laughed out loud when I saw the prices. Didn't stop me from buying but it definitely changed my decision. I know I am spoiled in Kentucky, but the cost when it comes to cigars in California was damn near double on everything :hn
 
bobarian said:
Plus 7-8.5% sales tax! Its brutal, but I still try to support my local shop with an occasional singles purchase. But boxes are out of the question!:hn
Click to expand...
Washington State is 75%.
An Ashton VSG Robusto is $14/cigar. That's before sale tax.

It's rather painful.
 
I used to work in Manhattan and don't miss how everything and I mean everything is inflated, if your doing all your shopping there all the prices are inflated to begin with before adding tax so that's strike one. Just a fact of life in Manhattan although I miss being able to hit De La Concha, Davidoff and Tainos in a single day. Like others mentioned tobacco tax in NY is very high. Also you have to keep in mind that online retailers do larger numbers so I am sure they are getting better pricing than a small B&M simply because of the numbers they produce which allows them to spread some of the savings to the customer. Nothing beats a great local in my opinion. Although it could be more money nothing beats the relationship you can build with your local retailer and it's especially nice when rare stuff comes in and you get a phone call letting you know and giving you the jump on most other people. I usually do all my box purchases online but still support my locals with the purchase of singles, 5ers and the occasional box purchase but even just buying 5ers and singles gets expensive which most times I walk out thinking I could have bought a box with what I spent.:r
 
bobarian said:
Plus 7-8.5% sales tax! Its brutal, but I still try to support my local shop with an occasional singles purchase. But boxes are out of the question!:hn
Click to expand...

:tpd: at one point famous had boxes of the preferidos tubos for $204. Miami cigar was selling them to me at the hyatt for $200. some of these guy buy in such volume b&m's just can't compete.
 
The whole tax thing is the government excise charged to the retailer, no matter if it's a local B&M or JR's, Mike's Cigars, ETC. They have to pay that tax up front and of course, pass that tax onto us with higher prices. This tax is different from state to state. For example, in Ohio, the excise tax on cigars is 17% of the wholesalers price. For a box that costs $100, it would cost the B&M $117 and then they have to figure in their profit. The tax varies from state to state. Florida has no excise tax on cigars, so that's it why it seems that they are so much cheaper when you get some from there. The retailers don't have to add anymore to the cost to pay the tax. Of course, there is then your local sales tax that is then added, but the retailer doesn't have to pay this until they actually sell the product. Of course, when you order online through out of state retailers, you technically are responsible to report your purchases as part of your state taxes and pay those taxes. (Or at least, we in Ohio are supposed to.)

And the government wanted to pass the SCHIPP bill, which would have hiked the taxes up even more.

Here's a link that shows what the excise tax is on tobacco products from state to state. As you may see, there are only 3 state that have no excise tax on cigars, and there are a few states where the tax is ridiculous. I feel bad for those BOTL that live in those states.

http://www.tobaccofreekids.org/research/factsheets/pdf/0169.pdf

Hope this helps!
 
Colorado is 40%. I get raped at the B&M but I support it still, because they're great people and they reward me for my patronage. They give me random discounts, free stuff, benefits, advice and unparalelled service. I don't buy much at any one time because I don't care to spend $5.50 on a Sancho Panza and $31.00 on a Padron 1926, but I do enjoy trying out new cigars and smoking them with the guys there. It's the principle of the matter.

But when my Vinotemp is set up and I start buying whole boxes of things, that business will go to CI, CB, AC, F-S, Kioki, Taboo, etc.
 
The local B&M I frequent (in CA, with the big tax and all) is such a great place to hang out that it's worth every penny to buy a couple singles there a week just to hang out.
:2
 
Sagellih said:
The whole tax thing is the government excise charged to the retailer, no matter if it's a local B&M or JR's, Mike's Cigars, ETC. They have to pay that tax up front and of course, pass that tax onto us with higher prices. This tax is different from state to state. For example, in Ohio, the excise tax on cigars is 17% of the wholesalers price. For a box that costs $100, it would cost the B&M $117 and then they have to figure in their profit. The tax varies from state to state. Florida has no excise tax on cigars, so that's it why it seems that they are so much cheaper when you get some from there. The retailers don't have to add anymore to the cost to pay the tax. Of course, there is then your local sales tax that is then added, but the retailer doesn't have to pay this until they actually sell the product. Of course, when you order online through out of state retailers, you technically are responsible to report your purchases as part of your state taxes and pay those taxes. (Or at least, we in Ohio are supposed to.)

And the government wanted to pass the SCHIPP bill, which would have hiked the taxes up even more.

Here's a link that shows what the excise tax is on tobacco products from state to state. As you may see, there are only 3 state that have no excise tax on cigars, and there are a few states where the tax is ridiculous. I feel bad for those BOTL that live in those states.

http://www.tobaccofreekids.org/research/factsheets/pdf/0169.pdf

Hope this helps!
Click to expand...

Excellent post and excellent resource. I wish every member on this forum would read this and we can finally put the "prices are too high at my B&M what am I gonna do..." threads to bed already.

Why does a hammer cost $4.00 more at your local mom & pop hardware store than it does at WalMart? If you want to buy a hammer and save a few dollars, go to Wal Mart. If you want to make sure and get the right hammer for your needs, and learn how to use it right, and get the right nails for the job, and get personal service then go to the local hardware store.

BTW, how come no one ever complains that a pint of import or micro brew at their favorite watering hole is $4.00 a pint, but they can get a whole 6 pack for $8.99 at the supermarket? At $4.00 a pint, that works out to $18.00 a six pack. Hardly a deal yet we keep going to the same watering hole for some reason... hmmmm.

Just apply the same logic to cigars. Smoking cigars is a social function for most people (although there is a lot to be said for being left alone in peace). The smokeshop gives you the social aspect of the cigar experience. It's our "tavern," if you will.
 
You must log in or register to reply here.
Back
Top