Does this seem right to you?

[irratebass]

Originally Posted by ZaneG

I am on the north side of Indy and we have 2 local B&M's here. I find usually a 2 to 3 dollar markup at one and a 4 to 5 at the other compared to online. And that is before taxes......

This was at Indy Cigar Bar

Originally Posted by MedicCook

You also have to take into account that the online big boxes are buying the cigars in larger quantities than the local B&M so the online places buy cheaper and sell cheaper. It's just like Wal*Mart coming into your neighborhood and putting the local family owned shop out of business.

This is exactly why I want to support my local B&M's

Originally Posted by area51

This is my take on all this. Take it for what it's worth. I love my B&M, great place run by a great guy. The thing is he is a little overpriced compared to online vendors. That is because of state taxes and such. I understand that. What I do however is if he has a stick I have yet to try, I will pick up 1 or 2 just to support him. I will then buy a box online if I truly like it. To each their own however.

Now this I didn't think about, nice strategy.

[drevim]

Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.

[irratebass]

Originally Posted by drevim

Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.

Wow! That's a D1ick move for sure.

[replicant_argent]

Originally Posted by drevim

Down here in Evansville, IN, we have a couple of pretty decent B&Ms. But one is quite a bit better. I've personally witnessed an employee from the second shop come into the better one, purchase a box, then go back to their shop and mark them up $4-5 a stick.

Pretty much have stopped visiting shop #2.

Originally Posted by irratebass

Wow! That's a D1ick move for sure.

So, the first shop owner is happy, he sold cigars for his price.
The second shop is purchasing a product, and putting capital into a product he may or may not sell, taking the risk that he can indeed sell them for the higher price to make a (fairly small) retail profit to drive his business. He is also expanding his inventory to serve his customer base at a cost that is most likely higher than what may have been normal wholesale pricing (if there is a licensing or preferred vendor pricing structure.)
The customer (any customer at any shop) has the choice to buy or not buy at any price.

And the "D1ck" move is exactly what?

[irratebass]

Originally Posted by replicant_argent

So, the first shop owner is happy, he sold cigars for his price.
The second shop is purchasing a product, and putting capital into a product he may or may not sell, taking the risk that he can indeed sell them for the higher price to make a (fairly small) retail profit to drive his business. He is also expanding his inventory to serve his customer base at a cost that is most likely higher than what may have been normal wholesale pricing (if there is a licensing or preferred vendor pricing structure.)
The customer (any customer at any shop) has the choice to buy or not buy at any price.

And the "D1ck" move is exactly what?

The d1ck move I was referring to was shop #2 raising the price higher than shop #1.

You explained it all in your above message, and you are right shop #2 has a right to do that and we as consumers have the right not to shop there.

[bobarian]

Originally Posted by irratebass

The d1ck move I was referring to was shop #2 raising the price higher than shop #1.

You explained it all in your above message, and you are right shop #2 has a right to do that and we as consumers have the right not to shop there.

That's absolutely ridiculous. You know nothing about the second shop. He may have higher rent and overhead. He had to pay sales tax on his purchase and pay the employee to go and buy the box. Maybe his customers dont like the first shop and are willing to pay extra.

[drevim]

Originally Posted by bobarian

That's absolutely ridiculous. You know nothing about the second shop. He may have higher rent and overhead. He had to pay sales tax on his purchase and pay the employee to go and buy the box. Maybe his customers dont like the first shop and are willing to pay extra.

While I, and no one except the owners, can speak of overhead costs. This may very well be true. I wasn't passing judgement on either shop. The newer shop (#1 in the post) seems to have a much larger selection, and as was stated, made their asking price for the box.

#2 has been around for a much longer time, and while it does have a decent selection, has always had far more of a mark up than the other 4 or 5 shops in town. May be that they were able to do this prior to any competition. May be that they have the overhead issue. They do a steady business, but seemed to be mostly regulars when I was going there.

The only point I was trying to make, is that markups can happen in many ways.

[Zane]

Originally Posted by irratebass

This was at Indy Cigar Bar.

Well. That's the issue heh. I have only been there a few times but since its not a typical B&M its beyond marke