Casa Funte prices

The best defense is a good offense, I suppose. Your persistent rancor has dragged your original response down even further. Methinks thou dost protest too much.

Have a nice day. I'm done here.

...and when you have no points to make, claiming victimization is a valid technique, apparently?

I see absolutely no rancor in what I posted; I did not attack you personally. Shall I quote your own words?

"irresponsible unfair and often downright unconstitutional or just plain old unethical behaviors"

"The reality is that although the Fuente family might not be holding up the bank, they're driving the getaway car, in that Casa Fuente, licensed as it is, would not be there at all if not for the supply they receive."

Did I improperly summarize what you stated? Do you care to address any of the actual points that I brought up?
 
Fuente cannot tell retailers what price to set for their cigars. When they sell inventory to authorized dealers, they give them a suggested MSRP along with the wholesale price that the dealer pays. Actually enforcing what retailers charge would be price fixing, and it would be illegal under most circumstances.
So let's go back to my store in Podunk, NJ. When does charging what I think I can get for a cigar cross the line and become "gouging"? Suppose people in my area are willing to pay $75 for a Shark?

I saw that someone had posted a link to a message from the Fuentes regarding price gouging by retailers. (RJT, post #6 - http://www.cigarfamily.com/news/prices.htm) Maybe it's not authentic?

I'm just trying to clear up a few things in my own mind here; I hope I'm not being a total pain in the arse about it. ;)
 
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Oh please, we're talking about CIGARS, not the cost of a blood transfusion or a cancer treatment. Let's not go overboard on this, it's beginning to sound silly. JMO. Larry.:hn
 
So let's go back to my store in Podunk, NJ. When does charging what I think I can get for a cigar cross the line and become "gouging"? Suppose people in my area are willing to pay $75 for a Shark?

I saw that someone had posted a link to a message from the Fuentes regarding price gouging by retailers. (RJT, post #6 - http://www.cigarfamily.com/news/prices.htm) Maybe it's not authentic?

I'm just trying to clear up a few things in my own mind here; I hope I'm not being a total pain in the arse about it. ;)

As stated before, the Fuente's don't make any more for a cigar whether the retailer charges MSRP or whether they gouge or not. That letter was issued to protect the people that smoke Fuente cigars, just a little nudge to retailers to play fair.

Whether they do or not is up to the individual retailer. With the consumer becoming more aware of gouging and high prices, a store charging $75 for a Shark would be frowned upon by consumers, but it is still the retailers choice to be fair or not.

As a consumer, I would never support a shop charging insane prices just because a cigar is hard to get.
 
Just to clarify, the price that Fuente gets paid for these low production cigars is actually quite nominal. Where the mark-up really happens is in the grey market (due to scarcity), and less commonly by retailers. Fuente does not see any of that money; Fuente gets paid the wholesale price and that's it.

Understood moki....by owners, I meant the owners of the B&Ms, not the Fuentes.
 
Moki said:
...and when you have no points to make, claiming victimization is a valid technique, apparently?

Since Moki has engaged in a one-man crusade to defend the Fuente family both publcly in this thread, and in private via PM where he continued to cast recrimination, I thought this would be a good opportunity to vet this once and for all.

It's interesting how a discussion on business ethics gets wrapped around the axle of rhetoric when "it's for the children" is injected into the dialog. What you see happening here is EXACTLY what I was speaking about, where other issues are ignored because of the "feel good" motivation.

The road to hell is paved with good intentions, as I recall.

I state again for the record that I'm all for charity, and PERSONALLY (not through my business as a tax deduction) devote a uncommonly large amount of my time and money to a nonprofit cause myself. I believe that the Fuente foundation has done some remarkable work, but that does not dismiss questions related to the business circumstances under which those monies are generated. I personally consider charitable dollars that are generated from unfair business practices to be less virtuous than those which are done "on the level".

This thread began life as a discussion about unfair business practices. At post #11 it went around the bend because the matter of the CFCF was injected. Since then, it's been unilaterally taken on a one-way tangent. And that's fine... I'm a big boy and can roll with it. But when you a) hijack a thread, b) misread things out of context, c) put words in my mouth, and finally d) castigate me publicly and privately, that necessitates a response.

Let's go to the video tape:

From post #19
Hammerhead said:
James, I agree with your line of thinking, and I don't think anyone here is disputing the economics of it. I think the question is the double standard.
This establishes the basis of my premise.

From post #30
Hammerhead said:
just to vent in general, another way to help children is to teach them lessons of integrity. Like not having two sets of rules whenever it suits you. Like being on the level with your business partners... Not to disparage the Fuente family's philanthropy, but I'm so sick of having all kinds of irresponsible unfair and often downright unconstitutional or just plain old unethical behaviors excused because "it's for the children", that my head is ready to explode.
For those who were paying attention, this post expands on a general principle stated earlier. For those of you who weren't paying attention and have an agenda, you'd focus on one word in that entire paragraph and single it out so as to go on a one man crusade.

From that same post above
Hammerhead said:
The reality is that although the Fuente family might not be holding up the bank, they're driving the getaway car, in that Casa Fuente, licensed as it is, would not be there at all if not for the supply they receive.
Once again, we see how selective focus on the part of some people can bely an agenda. Were it my business, I never would have entered into that licensing agreement, no matter how noble the cause, without first having established a methodology to accommodate all my dealers.

Through it all, Moki is insisting that the Fuente family has nothing to do with Casa Fuente, despite the fact that the location bears their name, obtains product when other legitimate stocking dealers can't, and has their own self-branded line of cigars that are made of tobacco from... uh... Reno? Boise? Or is that tobacco from the Fuente farms? Now let's see... hmmm... nothing to do with that store? No financial stake in the venue? Sorry, I'm not buyin' it.

Moki said:
Right, right. Screw the impoverished children in the Dominican, what really counts is all those whiney cigar smokers are upset that they can't get certain cigars that they want on a regular basis.
There it goes again. Rather than address the issue, we excuse it, because "its for the children". Now let's look at the other things that are for the children.
  • Anti-transfat legislation is for the children, and we can't get decent KFC anymore
  • Anti-smoking legislation is for the children, and now business owners can't cater to their desire clientele, and some people can't even smoke in their apartments.
  • Anti-gun legislation is for the children, and has vicimized millions of Americans by rendering them defenseless...
And the list goes on. This is an object case in unintended consequences when we dismiss the attendant factors because we're so busy trying to make ourselves feel better about doing something nice.

I say again: Charity is only virtuous if it's fair.

It's my belief that when someone is so close to an issue because he's having his winkie wanked by a vendor, he tends to lose perspective - as in only focusing in selectively on what makes a case, rather than reading things in context and being objective about the issue.

Had I the time or inclination, I could talk at length about how companies manipulate their distribution channel through the selective use and exercise of:
1) Authorized dealer agreements and the threat of their withdrawal,
2) Allocation methods to keep said dealers in line,
3) Forced line extensions where dealers must buy one thing to get another,
4) Cooperative advertising dollars (or the lack thereof),
5) Adherence to MAP (Minimum Advertised Price) policies...
And other heavy-handed methods that we could be here for weeks. Truthfully, it's a study in its own right.

Hopefully this will address the recriminations that have been cast, and get the thread back to the stated purpose of discussing the business practices.
 
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http://www.clubstogie.com/vb/showthread.php?t=61961

I didnt want to thread jack his post so I started a new thread.

That is what pisses me off to know end with this Casa Fuente mess. They are allowed buy Fuente to price gouge. Yet they threaten the other dealers for selling over MSRP.Casa Fuente has a somewhat never ending supply of Opus and Anejos also. This part of the reason I have swore off Fuente products all together. I have friends in the industry and they can trat their dealers like crap.

All of you people need to swear off any and every rare fuente so that I will be able to gain a collection of them all since there will be no demand anymore for them. :r :r

Seriously people, I understand that people are upset over this. There are a few things to consider.
1. Las Vegas tobacco tax...what is it?
2. Rent that Casa Fuente owes to the Forum Shop to be able to rent out that cubby hole.
3. What other high end places who's rent is up there with the Forum Shop's who does sell cigars that doesnt gouge them?

I understand they are hipocrits when it comes to their store, and I also agree that some of their smokes were unreasonably high. But that's also the reason I didn't look for them to provide me with my supply of Anejo's. Places that do sell at MSRP always puts a limit on how many you can buy. Could you imagine how quickly stock would move at Casa if there was no limit or mark up on their sticks.

You have a right to complain, but you also have the right not to buy from them. I never bought anything that was way too overpriced in there, and stuck with what was reasonable. I will also continue to smoke Fuente's stuff.
 
Hopefully this will address the recriminations that have been cast, and get the thread back to the stated purpose of discussing the business practices.

No comments on the issue, just to say after reading Hammerheads post, he can be my lawyer any day!
 
Seriously people, I understand that people are upset over this. There are a few things to consider.
1. Las Vegas tobacco tax...what is it?
2. Rent that Casa Fuente owes to the Forum Shop to be able to rent out that cubby hole.
3. What other high end places who's rent is up there with the Forum Shop's who does sell cigars that doesnt gouge them?

Cam, don't get me wrong. I'm not going to stop smoking my Hemingways either. I just don't care to be played for a fool.

1) The tax on tobacco in Vegas is lower than in NY or CA. What about the stores on 5th Avenue or Rodeo Drive?

2) Rents are high in Midtown NY and in Beverly Hills, too.

3) I also disdain these practices when other merchants do it, too, (Davidoff was mentioned as one such example) but it's especially offensive when it's done while hiding behind the skirts of charity.
 
All of you people need to swear off any and every rare fuente so that I will be able to gain a collection of them all since there will be no demand anymore for them. :r :r

Seriously people, I understand that people are upset over this. There are a few things to consider.
1. Las Vegas tobacco tax...what is it?
2. Rent that Casa Fuente owes to the Forum Shop to be able to rent out that cubby hole.
3. What other high end places who's rent is up there with the Forum Shop's who does sell cigars that doesnt gouge them?

I mentioned the tax base for tobacco earlier in this thread, however, many seem to have missed it.

The Nevada State Tobacco Tax is 32.0% and in Clark County, where Las Vegas is located, the Sales Tax is 7.75%. Combined, the tax when purchasing tobacco products in the Las Vegas Area is 39.75%

Johnny
 
It's my belief that when someone is so close to an issue because he's having his winkie wanked by a vendor, he tends to lose perspective - as in only focusing in selectively on what makes a case, rather than reading things in context and being objective about the issue.

Probably not really needed as it doesn't really add to your argument, if anything it takes away from your post (although it is pretty funny).



I really don't have much to add on this topic, but there are a couple of details that seem a little off to me. I have spoken to several B&Ms that are not allowed to sell some Fuentes via phone orders or to ship them out of state. Others that are not allowed to list Fuente products on their websites. I really don't know the consequences if these B&Ms were to break these rules, but it seems strange to me that in order to carry a product, you have to agree not to sell that product to certain customers.

I know moki mentioned something about price fixing and how the Fuentes cannot tell a retailer how much they can charge for their cigars. If I am not mistaken, there was a B&M in Las Vegas (can't remember the name at the moment) that was selling boxes of cigars really cheap. They had to increase their prices as vendors threatened to stop selling them cigars unless they did.

I understand this is not the exactly the same thing since these people were selling them cheaper than everyone else, which in the end is only going to hurt other B&Ms and retailers. But if the Fuentes can threaten to stop sending cigars to certain retailers if they don't follow certain rules (like not shipping opusX out-of-state), I would be shocked if they couldn't do the same thing to authorized dealers that are gouging on their premium cigars. I have been told by several B&Ms that they basically get whatever Fuente sends them (regardless of what they try to order). They get an email before it is shipped saying what they are going to get and it arrives shortly after. From the looks of it, Fuente could decided to stop sending a B&M cigars for any reason they want. They don't have to mention anything about price-fixing. I know some retailers that charge high prices for opusX openly state that they are not an authorized Fuente dealer, so basically "expect to pay higher prices." This is where some people have a problem with Casa Fuente, since they are obviously an authorized Fuente dealer.

Finally, what I really wonder is how much are they gouging? If you take the MSRP price, add the NV taxes (someone mentioned about 40%) and estimate how much they have to give to the CFCF, you can figure out if their prices are in-line or not. You can debate about the inventory thing all you want.

Last time I was there, a couple of cigars did have a limit of three. I think they said they only get the sharks around the holidays, so they had a limit of 3 (lady did say they get the rest of the anejo line all year long :sb ). The 858 SGs and the ESGs had a limit as well.

The sadest part of this whole discussion is the fact that Casa Fuente is the cheapest place to buy opusX (and most other Fuentes for that matter) on the strip. The prices at the Davidoff stores and the other B&M's on the strip are even worse.
 
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Probably not really needed as it doesn't really add to your argument, if anything it takes away from your post (although it is pretty funny).
It was added with humorous intent, but to also make the point about bias. I had the audience in mind, knowing the LLGs here would find it amusing. :D
 
It was added with humorous intent, but to also make the point about bias. I had the audience in mind, knowing the LLGs here would find it amusing. :D

It is definitely true, moki defends the Fuente family like a mother defends her cubs. He feels very strongly on this matter, that is not good or bad. I think people need to realize that everyone has a different perspective and how those perspectives are formed is going to be based on past experiences. If everyone agreed on everything, the world would be a much different place.

The only problem I have with this discussion/thread is the tone and aggressive nature of some of the posts. Discussions are much better than arguments in my book.
 
The only problem I have with this discussion/thread is the tone and aggressive nature of some of the posts. Discussions are much better than arguments in my book.

Eh. Tone, shmone. :D

I can rock and roll with the best of 'em. Anyone wants to wrassle with me, that's fine... just get ready to go to the mat. For my part, I'll leave it to everyone's judgment to determine how we got here.

I tend to think that if you try and take the personalities and passion out, then it's not nearly as much fun. For my part, it's been a while since I've been to the target range.
 
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