Quote:
Originally Posted by NCRadioMan
Not exactly. Retailers do pay for the SCHIP tax as the manufacturers pass it along when they upped their cost to the retailer. Then, in turn, retailers pass it along to the customer. It's ultimately the customer that pays in the end.
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This means that SCHIP is built into the MSRP, so charging MSRP + a percentage and calling it SCHIP is dishonest.
Price the cigars higher than MSRP if you want to make more money, but taking advantage of customers that don't know that SCHIP is part of MSRP is dishonest.
Honestly, charging state cigar taxes as a percentage of the retail price is shady too. NC is 12.8% of WHOLESALE price. If you want to make at least keystone on your actual price, then make your pretax prices higher. Charging 12.8% of the retail purchase is not what the law states.
Honest, transparent pricing doesn't have to be non-profitable. Just price the sticks where you want to price them and charge the taxes as they are meant to be charged.
Saying something costs $10 and then charging 40 or 80 cents for "SCHIP", and then charging another 1.28 for state tobacco taxes when half of the state taxes and all of the SCHIP taxes go into your pocket is not right IMO.