On the eve of Schip, any boycotters?

I'll never stop buying cigars...

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

Originally Posted by Beer Doctor

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

The problem with that is everyone down the line uses this as a way to add their cut.

My wife smokes cigarettes. Here they have already went up over a buck a pack since the bill passed and the tax has not even been added yet. So the announced $1 a pack will actually be $2 a pack once everyone gets their cut. Cigars may not be that bad but we will just have to wait and see.

Chas

Originally Posted by ChasDen

The problem with that is everyone down the line uses this as a way to add their cut.

My wife smokes cigarettes. Here they have already went up over a buck a pack since the bill passed and the tax has not even been added yet. So the announced $1 a pack will actually be $2 a pack once everyone gets their cut. Cigars may not be that bad but we will just have to wait and see.

Chas

I agree. I'm not saying I like the tax but I'm not going to stop buying cigars because of it. I hated paying 3 bucks a gallon for gas but I did. Luckily I found the dark side and will probably concentrate my online buying to that. Ironically I'll be going to my B&M much more now in spite of SCHIP because of all the smoking bans here in WI. I'll be there tomorrow and we'll see if they raised prices o/n.

[stitch]

Originally Posted by Beer Doctor

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

I just wish I had your cigar budget!

Its not a real big deal on the cigars that sell for say 60, 80, 100+. But the days of cheap yardgars may be a thing of the past. I know I won't spend $30 on say a bundle of mixed filler cigars(that was around 20 bucks before the BS-chip), I'd rather spend $20 bucks more on something else. But, more than likely I'll just buy less quanity and more quality and try to curb my 5-6 a day down to 2-3.......there is always going the CC route. Besides, with the new taxes CC's are in most cases going to be cheaper the NC's.

Originally Posted by stitch

I just wish I had your cigar budget!

My example was purely hypothetical. My cigar budget is puny

[oldforge]

I saw this coming when the SCHIP debate started a couple of years ago.

I am stocked up to wait out two Obama administrations.

We will see who outlasts who.

[tsolomon]

I just purchased several boxes of the NCs that I like, but I'll reserve making any claims until I see the new prices. It might hurt my local B&M more as I will be price shopping if the increase is excessive.

No Boycott here, but I think I will be smoking my pipes more. Schip will effect pipe tobacco as well, but smoking a pipe will still only cost a smalll percentage of what it cost to smoke a cigar.

Originally Posted by Beer Doctor

Correct me if I'm wrong (which I probably am). The cap is 40 cents per cigar. So If you buy a box of 20 cigars. The price will increase 8 bucks. A 100 dollar box will be 108 and a 500 dollar box will be 508. Meh. I'll still buy cigars. It sucks but I'll still buy.

You not wrong except you forgot a couple things. The $8 is at the manufacturer level and they base profits off of percentages so when that profit is calcualted that must figure in the tax. If we only add 50% (low figure) your $8 is now $12, there is also the extra overhead from paperwork but that will be minimal. Next thing is your State OTP (other tobbaco products) tax which gets added on when the Cigars are landed in your state. It varies from state to state but here in Michigan it is 32% so we add that to the $12 which now becomes $15.84. From that point your local retailer must add his profit margin which is anywhere from 35% to 50% depending on how they do business so $15.84 + 35% = $21.38. And this is just to keep things the way they are, if the retailers or manufactires take less, the profit margins go down and they will eventually fade out of business. This is reality. The effect is much larger than we realize. Wait until the guys who only buy $25 bundles see their new price. It will only drive more folks to buy mail order and avoid the State OTP all together. Just my opinion, I could be wrong but my calculator tells me I am not, thanks for listening.
Mike

[marge796]

Originally Posted by shortstory5

I'll never stop buying cigars...

^^^I feel the same way^^^


Don't get me wrong **** the tax man!!

[Whee]

<-----------

Originally Posted by marge796

^^^I feel the same way^^^


Don't get me wrong **** the tax man!!

Only if you wear that pink sweater and buy me dinner first.

[larryinlc]

As I look around at the various online vendors I use regularly, I see no price changes. Possibly the large mark-up in cigars allows them to absorb the new tax??

Larry

Originally Posted by larryinlc

As I look around at the various online vendors I use regularly, I see no price changes. Possibly the large mark-up in cigars allows them to absorb the new tax??

Larry

No. Like someone in an earlier post stated; The tax increase is at the manufacturer level and is in effect on all shipments of cigars imported (or produced as is the case for US based makers such as Don Pepin) into the US on or after April 1. So, several cigar makers are not raising their prices until their current stock is depleted and new shipments arrive from their factories. Others have elected to raise prices on April 1. Others, such as Drew Estate, elected to raise theirs in the middle of March.

So retailers who have inventory on hand at the old price would theoretically continue to offer the old price to their customers UNTIL such a time as they receive new orders that they placed AFTER April 1.

Bottom Line: When we get a shipment in and the invoice reflects a NEW, higher price as a result of SCHIP, we will then adjust our price accordingly... and not before.

Final Note: You will notice prices going up considerably higher than the .40 cents everyone it talking about. A few reasons are added state tobacco taxes, retailer margins (we gotta pay the bills), and PRICE INCREASES THAT ARE NOT A PART OF SCHIP BY SOME CIGAR MAKERS. I won't mention any names here, but one VERY popular cigar maker has also added a price increase on their entire line IN ADDITION to the SCHIP tax.

So you will see a wide range of price increases on different brands. Tatuaje and Esencia are the only two that I know of that have elected to absorb the entire tax increase... at least for this year.

[lightning9191]

Originally Posted by leafandale

I won't mention any names here, but one VERY popular cigar maker has also added a price increase on their entire line IN ADDITION to the SCHIP tax.

I wonder who it is?

[oldforge]

I received an email from one (fairly obscure) vendor that claimed it was Oliva who raised their prices and added a SCHIP markup. The vendor said because of that they were no longer going to carry their bundles.

I cannot vouch for the accuracy of this information so take it for whatever it is worth.

[troutbreath]

Originally Posted by leafandale

No. Like someone in an earlier post stated; The tax increase is at the manufacturer level and is in effect on all shipments of cigars imported (or produced as is the case for US based makers such as Don Pepin) into the US on or after April 1. So, several cigar makers are not raising their prices until their current stock is depleted and new shipments arrive from their factories. Others have elected to raise prices on April 1. Others, such as Drew Estate, elected to raise theirs in the middle of March.

So retailers who have inventory on hand at the old price would theoretically continue to offer the old price to their customers UNTIL such a time as they receive new orders that they placed AFTER April 1.

Bottom Line: When we get a shipment in and the invoice reflects a NEW, higher price as a result of SCHIP, we will then adjust our price accordingly... and not before.

Final Note: You will notice prices going up considerably higher than the .40 cents everyone it talking about. A few reasons are added state tobacco taxes, retailer margins (we gotta pay the bills), and PRICE INCREASES THAT ARE NOT A PART OF SCHIP BY SOME CIGAR MAKERS. I won't mention any names here, but one VERY popular cigar maker has also added a price increase on their entire line IN ADDITION to the SCHIP tax.

So you will see a wide range of price increases on different brands. Tatuaje and Esencia are the only two that I know of that have elected to absorb the entire tax increase... at least for this year.

This is the B&M that helped me stock up the most. Thanks, Mike! Good to hear about Tatuaje -- I had already hearda bout Esencia. But, I bought a box of Esencia PC's and Tat Unicos at your store in February . . . so I guess I missed their generosity.

This is a GREAT store, if you ever find yourselves in Knoxville.