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Evolving Lead Gorilla
You bring up a point that is becoming more and more of an issue as online sales continue to make inroads into what at one time was solely the terratory of the B&Ms.
Just my opinion, but a lot depends on what kind of a markup the B&M wants, or in some cases, needs, to remain in business. Clearly, if the B&M in your case is pricing their wares that much higher just to remain in business, quite simply, they won't be in business much longer. If their pricing is at a level to maximize profits, they are going to have to make some decisions in the very near future.
I think most pipe and cigar smokers have more loyalty to a B&M they have done business with for a substaintial period of time, than the same people would have to a shoe store for example. But that loyalty will only reach so far. There is going to be competition in this industry like any other and the B&M who can't come close to being able to compete with online stores, will I'm afraid, fall by the wayside in the not to distant future.
Online stores have had the effect of actually bringing prices down on many items, and it can be expected that a good many smokers are naturally going to take advantage of the savings. As much as I hate to see the small B&M disappear from the scene, they are going to have to offer the smoker value. All of that "value" does not have to be in the form of price, but I seriously doubt that many smoker's would pay the extra 50.00 as you mention in your case.
Online purchasing is going to continue to grow in all retail markets, and tobacco products and accessories are ideal to promote online. As I stated above, I will hate to see them go, but if the B&M is not going use the most profitable marketing techniques that are being used by his competitors, I'm of the opinion that we will see fewer and fewer strickly B&M businesses able to "make a go of it" in the future.:2
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Just my opinion, but a lot depends on what kind of a markup the B&M wants, or in some cases, needs, to remain in business. Clearly, if the B&M in your case is pricing their wares that much higher just to remain in business, quite simply, they won't be in business much longer. If their pricing is at a level to maximize profits, they are going to have to make some decisions in the very near future.
I think most pipe and cigar smokers have more loyalty to a B&M they have done business with for a substaintial period of time, than the same people would have to a shoe store for example. But that loyalty will only reach so far. There is going to be competition in this industry like any other and the B&M who can't come close to being able to compete with online stores, will I'm afraid, fall by the wayside in the not to distant future.
Online stores have had the effect of actually bringing prices down on many items, and it can be expected that a good many smokers are naturally going to take advantage of the savings. As much as I hate to see the small B&M disappear from the scene, they are going to have to offer the smoker value. All of that "value" does not have to be in the form of price, but I seriously doubt that many smoker's would pay the extra 50.00 as you mention in your case.
Online purchasing is going to continue to grow in all retail markets, and tobacco products and accessories are ideal to promote online. As I stated above, I will hate to see them go, but if the B&M is not going use the most profitable marketing techniques that are being used by his competitors, I'm of the opinion that we will see fewer and fewer strickly B&M businesses able to "make a go of it" in the future.:2
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