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Old 03-31-2009, 06:59 PM   #1
Beer Doctor
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Default Re: On the eve of Schip, any boycotters?

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.
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Old 03-31-2009, 08:32 PM   #2
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Default Re: On the eve of Schip, any boycotters?

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Originally Posted by Beer Doctor View Post
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
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Old 03-31-2009, 09:46 PM   #3
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Default Re: On the eve of Schip, any boycotters?

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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.
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Old 03-31-2009, 10:53 PM   #4
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Default Re: On the eve of Schip, any boycotters?

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Originally Posted by Beer Doctor View Post
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!
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Old 03-31-2009, 11:16 PM   #5
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Default Re: On the eve of Schip, any boycotters?

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.
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Old 04-01-2009, 08:27 AM   #6
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Default Re: On the eve of Schip, any boycotters?

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I just wish I had your cigar budget!
My example was purely hypothetical. My cigar budget is puny
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Old 04-01-2009, 12:19 PM   #7
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Talking Re: On the eve of Schip, any boycotters?

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.
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Old 04-01-2009, 12:40 PM   #8
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Default Re: On the eve of Schip, any boycotters?

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.
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Old 04-01-2009, 01:00 PM   #9
Dgar
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Default Re: On the eve of Schip, any boycotters?

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.
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Old 04-01-2009, 07:52 AM   #10
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Default Re: On the eve of Schip, any boycotters?

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Originally Posted by Beer Doctor View Post
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.
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