Distribution

[mrtr33]

Does anyone have any insight into cigar distribution? I'm talking about a store (could be B&M, could be online) that gains permission to sell a certain brand of cigar (AF, Padron, Henry Clay, whoever). What's involved, and what are the benefits to the manufacturer of being selective about your retailers?

Here's where I'm going:

I know of a local store that sells a certain brand that I know isn't an authorized retailer. While it potentially could be that the manufacturer hasn't updated their site, I'm further suspicious because the markup on these particular cigars is lower than the markup on the other cigars they sell, suggesting to me that they are acquiring these boxes from other sources than the retailer. I'm not looking to cause trouble, but I do wonder what implications this has on the manufacturer side (where my loyalties, at least in this case, lie). I will say that for this particular brand, it is not available anywhere else in the city than this one store.

[Paddy]

I know here in MA, it would leave a much larger profit margin for a retailer to say buy one box of
... Let’s say Gispert Maduro Toro's from his distributor and then subsequently refill that box with product purchased via online sources. A box of Gisperts via CI or JR’s runs about $45.00, where in MA the same product from a distributor would be about $95.00
Due to excise taxes. Illegal – YES. Immoral – Maybe. But money does strange things to people.

[kevin7]

A friend used to sell Fuente he bought from a business who didnt sell much Fuente but got big ass shipments including hard to find stuff. He bought cheaper from them than Fuente would sell to him. It's a shady business at best and almost criminal at worst. It borders on Mafia underworld BS

[ggiese]

A friend used to sell Fuente he bought from a business who didnt sell much Fuente but got big ass shipments including hard to find stuff. He bought cheaper from them than Fuente would sell to him. It's a shady business at best and almost criminal at worst. It borders on Mafia underworld BS

...that's how I usually get my Masterpiece maddie's for a buck or two over retail (not bad, with Illinois taxes the way they are). The store I buy them from gets them from a retailer that buys directly from Fuente. The "host" likes that he's always making a huge order to Fuente. They look at the relationshiip as a "win-win" - bigger orders for the host, leading to bigger shipments of the hard to finds... That should work as long as the food chain exists. It will be interesting to see what happens if/when the end buyers shut down.

And I've seen the opposite as well. Out in Salt Lake City - a cigar shop I stopped in was selling Anejo's for HUGE prices (i.e. $45.00 each). He tried to tell me they were they were so richly priced because Anejo's were the "Cadillac" of cigars. Further investigation with Fuente revealed that he was not an authorized retailer - and was purchasing his Fuente's from an authorized retailer - which literally allowed him to price them however he felt, with no fear Fuente would shut him down. Fuente said they discourage the practice and that they would refuse to ship to authorized retailers engaged in selling to gougers - though they admitted it would be difficult, at best, to go after the original source of the heavily marked up Anjeo's.

[Diesel Grinch]

A local I know does this. He didn't have the HTF items and use to buy them from another store then mark them up and resell. Now he has the account and marks them up even more. Shows some of the internet prices from the guys that rob you blind. Always seems to have them in for some reason.

Do I like it no. So I don't buy them. I let my money do the talking.

DG

[ashauler]

The authorized Fuente shop here has a Diamond Crown Lounge as well......they have Opus X and Anejo a couple of times a year, limit 2 of each size available per visit, priced very reasonably.

There is another lounge across town, not authorized Fuente dealers. Their prices are outrageous, but they always have Opus and Anejo at no limit.

I buy mine a couple of times a year.....2 sticks at a time. I won't support the gougers.

[nhcigarfan]

...that's how I usually get my Masterpiece maddie's for a buck or two over retail (not bad, with Illinois taxes the way they are). The store I buy them from gets them from a retailer that buys directly from Fuente. The "host" likes that he's always making a huge order to Fuente. They look at the relationshiip as a "win-win" - bigger orders for the host, leading to bigger shipments of the hard to finds... That should work as long as the food chain exists. It will be interesting to see what happens if/when the end buyers shut down.

And I've seen the opposite as well. Out in Salt Lake City - a cigar shop I stopped in was selling Anejo's for HUGE prices (i.e. $45.00 each). He tried to tell me they were they were so richly priced because Anejo's were the "Cadillac" of cigars. Further investigation with Fuente revealed that he was not an authorized retailer - and was purchasing his Fuente's from an authorized retailer - which literally allowed him to price them however he felt, with no fear Fuente would shut him down. Fuente said they discourage the practice and that they would refuse to ship to authorized retailers engaged in selling to gougers - though they admitted it would be difficult, at best, to go after the original source of the heavily marked up Anjeo's.

Ah yes, like my good friends at tobacco world.