Mom's lost a customer today

[borndead1]

The thing about the S-CHIP tax is that it did NOT include a "floor tax". Retailers do not have to retro the tax on stock they already have.

Basically, the next time they order (insert brand here) cigars from the manufacturer, the price will reflect the new tax increase.


Clear as mud?

What I'm saying is that anybody who automatically raised prices on inventory they already have is a sheister. We shouldn't have seen automatic price increases on April 1st.

Famous Smoke Shop will be getting more business from me.

JR will never get my business again.

[rizzle]

Originally Posted by borndead1

The thing about the S-CHIP tax is that it did NOT include a "floor tax". Retailers do not have to retro the tax on stock they already have.
Basically, the next time they order (insert brand here) cigars from the manufacturer, the price will reflect the new tax increase.


Clear as mud?

What I'm saying is that anybody who automatically raised prices on inventory they already have is a sheister. We shouldn't have seen automatic price increases on April 1st.

Famous Smoke Shop will be getting more business from me.

JR will never get my business again.

Absolutely correct. One of my locals is taking that approach, the other raised automatically. Guess who gets my biz?

I went to their store on Sunrise Highway a few years back and had a questionable experience there. They really didnt take me serious because I looked like I was 17... Although that shouldn't matter, I have been treated way better at other places.

[md4958]

Originally Posted by borndead1

The thing about the S-CHIP tax is that it did NOT include a "floor tax". Retailers do not have to retro the tax on stock they already have.

Basically, the next time they order (insert brand here) cigars from the manufacturer, the price will reflect the new tax increase.


Clear as mud?

What I'm saying is that anybody who automatically raised prices on inventory they already have is a sheister. We shouldn't have seen automatic price increases on April 1st.

Famous Smoke Shop will be getting more business from me.

JR will never get my business again.

Originally Posted by rizzle

Absolutely correct. One of my locals is taking that approach, the other raised automatically. Guess who gets my biz?

In talking with Mike (Azon cigars) he told us that many brands have already increased thier prices as of a month or two back ( I believe Patel and Drew Estates were some of the first). So while s-chip went into affect on 4/1, many retailers were already paying a higher price.

Ill see if Mike can chime in here with more info.

Since I don't want to talk about another retailer....I will only comment on SCHIP.

Drew Estate changed their prices in March. They did it in as a small % price increase on most products. They reason they changed in March was because of their high volume.

A few companies are going up April 1, April 15, May 1 ect.

A few companies are eating the Schip.

If someone is charging for Schip on a cigars whose company ate the tax, who's getting the extra $$$$?

Now the govt does not care who pays the tax. If the company eats it, great the govt is still getting paid. If the company passes it on, great the govt is still getting paid.

There is NO floor tax on large cigars. That means CURRENT inventory in a retailers/wholesalers/companies humidor does not get taxed. Any cigar already in the United States does NOT get taxed.

As of April 1, all imports and all production of cigars in United States will be taxed.

(When I say company, I refer to cigar makers i.e. Drew Estate, Perdomo etc)

PS We are adjusting prices accordingly and new product arrives.

[Tio Gato]

I think Mom's is the wholesaler for these cigars. That may explain why they need to charge the Schip tax immediately. I'm not sure. They may be obligated to charge the tax now. I think that we're going to see lots of price changes real soon. Probably above and beyond the Schip tax. This tax is going to make it more expensive for everyone and that expense will be passed on to all of us.
As with a lot of "old school" cigar companies, I think that they haven't "kept up with the times" with regard to their website. It's too bad.

[borndead1]

Originally Posted by volfan

So to be as Clear as mud, you are stating that the shop must have already had these in stock and raised the prices AND that there is no way these could be a new shipment? I was just trying to explain a possible why but will refrain in the future. have fun

I don't know - I've never bought from Mom's and never been to their store. Guess I was a little hasty pointing a finger at them...

I have started this reply twice and stooped since I have been on both sides of this issue. As a customer I fully understand the I should get what was advertised side of the story. But on the retailer side of the issue there needs to be the prices subject to change without notice disclaimer. Especially when it comes to online advertising and print adds. There are things out of your control as a retailer, typos, temporary price increases and the good old "act of god" situations. Often times we see threads where people urge others to support the local shops or the small guy. Well the small guy may only have 1 guy who does all the buying, inventory, advertising, bookwork, webmaster and oh yea works 8 hours behind the counter too. The new tax law went into effect 10 days ago so perhaps they or he just hasn't had time to update the website yet.

Its a tough situation to compete with the mega outlets but at least they are trying

Chas