Mikes Cigars loses Oliva.

rrplasencia · 02-24-2009, 12:08 PM

I searched forum but if this was posted already please close.

Oliva pulled Mike's Cigars account after two warnings to sell the Oliva lines closer to msrp. The third strike came when Oliva Sr. was looking through a mikes catalog and saw an Oliva sampler at half msrp. So they pulled the $500,000.00 account.

I can respect them looking out for local b&m's not being run out of business by the internet giants.

02-24-2009, 12:15 PM

thats awesome. can i give them RG?

borndead1 · 02-24-2009, 12:18 PM

Wow. They ain't playin' around.

How does something like that work? Does Oliva pull all the stock that Mike's has or just stop selling to them?

Volt · 02-24-2009, 12:21 PM

Who is Mikes Cigars?

NCRadioMan · 02-24-2009, 12:22 PM

Quote:

Originally Posted by borndead1

Wow. They ain't playin' around.

How does something like that work? Does Oliva pull all the stock that Mike's has or just stop selling to them?

Just stop selling to them. They can't pull stock that has already been paid for. As a retailer, you have to sign a contract saying you will not do this type thing or the account could be pulled. However, there are other distributors that you can get cigars from but it will cost a little bit more.

GrtndpwrflOZ · 02-24-2009, 12:23 PM

Quote:

Originally Posted by SixPackSunday

thats awesome. can i give them RG?

Whom? Mike's Cigars or Oliva?

"THAT'S AWESOME" ????? Yeah, if you're a retailer.

If you could find smokes for close to 1/2 the MSRP wouldn't you think it's AWESOME?

Yazzie · 02-24-2009, 12:25 PM

Really, If I can get my V's at 1/2 price then that's a good deal for me. I'm not all that concerned with the B&M's

Stick · 02-24-2009, 12:25 PM

Quote:

Originally Posted by Volt

Who is Mikes Cigars?

www.mikescigars.com
Posted via Mobile Device

NCRadioMan · 02-24-2009, 12:26 PM

Quote:

Originally Posted by Yazzie

Really, If I can get my V's at 1/2 price then that's a good deal for me. I'm not all that concerned with the B&M's

That's very selfish of you.

I, for one, am glad this can happen because it helps protect my job.

doctorcue · 02-24-2009, 02:52 PM

I do think that manufacturers have the right to protect their brand. If one place sells WAY cheap it devalues their line. Also, I'm sure there was a contractual price when Mike's started carrying the Oliva line.

Chalk this up as a win for B&Ms everywhere. I don't mind paying more for smokes; this is a luxury. I don't NEED cigars; I choose to smoke them.

ucla695 · 02-24-2009, 03:03 PM

The B&Ms got two warnings and should have known better, but it’s a loss for the consumer

Sauer Grapes · 02-24-2009, 03:09 PM

I don't see anything close to half msrp on their site...

Kreth · 02-24-2009, 03:29 PM

This is really similar to how the golf industry operates. Some of the big OEMs, like Ping, are notorious for using "secret shoppers" to check for accounts selling below MSRP.

02-24-2009, 04:20 PM

Quote:

Originally Posted by Sauer Grapes

I don't see anything close to half msrp on their site...

I think he is talking about this..

https://www.mikescigars.com/ProductD...-SAMPLER/29260

Sauer Grapes · 02-24-2009, 04:44 PM

Now that makes more sense.

GWN · 02-24-2009, 05:01 PM

Quote:

Originally Posted by doctorcue

I do think that manufacturers have the right to protect their brand. If one place sells WAY cheap it devalues their line. Also, I'm sure there was a contractual price when Mike's started carrying the Oliva line.

Chalk this up as a win for B&Ms everywhere. I don't mind paying more for smokes; this is a luxury. I don't NEED cigars; I choose to smoke them.

It's not unique to the cigar industry. Apple has always done this.

elderboy02 · 02-24-2009, 09:43 PM

Very interesting

pnoon · 02-24-2009, 09:44 PM

Nice review.

houdini · 02-24-2009, 09:55 PM

Quote:

Originally Posted by calhounhusker

I think he is talking about this..

https://www.mikescigars.com/ProductD...-SAMPLER/29260

Good deal too!

Silound · 02-24-2009, 10:43 PM

I'm of mixed opinions about this, mostly because I've only got a limited amount of information. As far as I can tell, that sampler is the only thing that's being sold so far below MSRP.

Any retail knowledgeable person will tell you that brand recognition is a major player in sales. Many retailers (whatever the product is) sell a certain item of a name brand as a "loss leader" to attract other sales. If I like the cigars in this sampler, I'm very apt to buy more of those cigars, probably at the full price. So it's very possible that MikesCigars was using that sampler to boost Oliva sales. Why they didn't simply make arrangement to do this with Oliva, I'm not sure.

I can also see Oliva's point of view trying to protect the brand, but there are other ways of getting around that problem, so I don't see why there's a need to pull the account. Raise your price to the supplier, and let them sell the item for no profit or a loss. Limit the available stock to them.

I'm wondering what other information we aren't privy to, because a half million dollar a year account is a LOT of money for a business to simply throw aside, even a multi-million dollar outfit like Oliva can't afford to go killing accounts left and right. "A penny here, nickle there, and soon you've lost a whole dollar" as the saying goes.

02-24-2009, 12:08 PM	#1
rrplasencia monica lewinsky Join Date: Oct 2008 First Name: Richard Location: Miami Posts: 1,827 Trading: (55)	Mikes Cigars loses Oliva. I searched forum but if this was posted already please close. Oliva pulled Mike's Cigars account after two warnings to sell the Oliva lines closer to msrp. The third strike came when Oliva Sr. was looking through a mikes catalog and saw an Oliva sampler at half msrp. So they pulled the $500,000.00 account. I can respect them looking out for local b&m's not being run out of business by the internet giants. __________________ "Merica, Back to Back World War Champs." -Cloyd Rivers

02-24-2009, 12:15 PM	#2
SixPackSunday Guest Posts: n/a	Re: Mikes Cigars loses Oliva. thats awesome. can i give them RG?

02-24-2009, 12:18 PM	#3
borndead1 Ayatollah of Rock n Rolla Join Date: Oct 2008 First Name: Mark Location: Lancaster, CA Posts: 1,321 Trading: (7)	Re: Mikes Cigars loses Oliva. Wow. They ain't playin' around. How does something like that work? Does Oliva pull all the stock that Mike's has or just stop selling to them?

02-24-2009, 12:21 PM	#4
Volt I'm nuts for the place Join Date: Oct 2008 Posts: 2,799 Trading: (19)	Re: Mikes Cigars loses Oliva. Who is Mikes Cigars? __________________ Curing the infection... One bullet at a time.

02-24-2009, 12:25 PM	#7
Yazzie Have My Own Room Join Date: Nov 2008 First Name: Mark Location: Longhorn Country Posts: 1,674 Trading: (10)	Re: Mikes Cigars loses Oliva. Really, If I can get my V's at 1/2 price then that's a good deal for me. I'm not all that concerned with the B&M's

02-24-2009, 02:52 PM	#10
doctorcue BABOTL - VP of Drinking Join Date: Oct 2008 First Name: Danny Location: Rancho Cordova, CA Posts: 331 Trading: (2)	Re: Mikes Cigars loses Oliva. I do think that manufacturers have the right to protect their brand. If one place sells WAY cheap it devalues their line. Also, I'm sure there was a contractual price when Mike's started carrying the Oliva line. Chalk this up as a win for B&Ms everywhere. I don't mind paying more for smokes; this is a luxury. I don't NEED cigars; I choose to smoke them. __________________ Raiders, A's, Warriors.

02-24-2009, 03:03 PM	#11
ucla695 Neither here, nor there Join Date: Oct 2008 Location: The Pool Posts: 3,696 Trading: (5)	Re: Mikes Cigars loses Oliva. The B&Ms got two warnings and should have known better, but it’s a loss for the consumer

02-24-2009, 03:09 PM	#12
Sauer Grapes Snatchin' yo people up Join Date: Oct 2008 Posts: 2,235 Trading: (44)	Re: Mikes Cigars loses Oliva. I don't see anything close to half msrp on their site...

02-24-2009, 03:29 PM	#13
Kreth Ronin smoker Join Date: Jan 2009 First Name: Jeff Location: Oneonta, NY Posts: 3,620 Trading: (14)	Re: Mikes Cigars loses Oliva. This is really similar to how the golf industry operates. Some of the big OEMs, like Ping, are notorious for using "secret shoppers" to check for accounts selling below MSRP.

02-24-2009, 04:44 PM	#15
Sauer Grapes Snatchin' yo people up Join Date: Oct 2008 Posts: 2,235 Trading: (44)	Re: Mikes Cigars loses Oliva. Now that makes more sense.

02-24-2009, 09:43 PM	#17
elderboy02 Lets Go Buckeyes! Join Date: Oct 2008 First Name: Dan Location: Cincinnati, OH Posts: 12,496 Trading: (133)	Re: Mikes Cigars loses Oliva. Very interesting

02-24-2009, 09:44 PM	#18
pnoon YNWA Join Date: Oct 2008 First Name: Peter Location: San Diego Posts: 29,919 Trading: (20)	Re: Mikes Cigars loses Oliva. Nice review. __________________ Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are. -John Wooden

02-24-2009, 10:43 PM	#20
Silound ex-CS Swamp Gorilla Join Date: Nov 2008 Location: Somewhere in a swamp, south of sanity Posts: 802 Trading: (15)	Re: Mikes Cigars loses Oliva. I'm of mixed opinions about this, mostly because I've only got a limited amount of information. As far as I can tell, that sampler is the only thing that's being sold so far below MSRP. Any retail knowledgeable person will tell you that brand recognition is a major player in sales. Many retailers (whatever the product is) sell a certain item of a name brand as a "loss leader" to attract other sales. If I like the cigars in this sampler, I'm very apt to buy more of those cigars, probably at the full price. So it's very possible that MikesCigars was using that sampler to boost Oliva sales. Why they didn't simply make arrangement to do this with Oliva, I'm not sure. I can also see Oliva's point of view trying to protect the brand, but there are other ways of getting around that problem, so I don't see why there's a need to pull the account. Raise your price to the supplier, and let them sell the item for no profit or a loss. Limit the available stock to them. I'm wondering what other information we aren't privy to, because a half million dollar a year account is a LOT of money for a business to simply throw aside, even a multi-million dollar outfit like Oliva can't afford to go killing accounts left and right. "A penny here, nickle there, and soon you've lost a whole dollar" as the saying goes. __________________ Back in black, and better than ever! You can't keep a good gorilla down! LSU Geaux Tigers!