Local Cigar Shop: Cigar Price Markup

**godfather** · 08-30-2005, 08:16 PM

I just want to say thanks for everyone's recommendations and for the helpfulness of the site!

I took the advice of going to a 'local cigar shop' and asking for advice on some good smokes. Though I'm noticing my cigar shop is marking their cigars DOUBLE the price you can get them for online.

I checked both buying by the 'single stick' and 'box' and it is in fact double.

Question: Is this typical for local cigar shops to do this or is mine just raping me? Just curious...

Nice shop though and yes, it is good to support the locals in town :). Thanks!

**Krautle87** · 08-30-2005, 08:20 PM

Generally it is cheaper to buy online. They have less overhead and sell more. Usually I buy my singles locally, and when I want to order a box I do it mail order. Some stores do have deals on singles, one local place has buy 3 get one or buy 4 get 2 free deals.

**Hugh Jorgan** · 08-30-2005, 08:29 PM

Originally Posted by godfather

Question: Is this typical for local cigar shops to do this or is mine just raping me? Just curious...

Where do you live? That may be part of it.

When comparing prices make sure you take into account the state sales tax and tobacco taxes too.

http://www.taxadmin.org/fta/rate/otp.html

**godfather** · 08-30-2005, 08:32 PM

Sorry, that may help...I live in California :)

The doubled price I pay is before sales tax. If I'm reading this correctly, they tax smokes in California by 46% of the wholesale price? Geez.

**Hugh Jorgan** · 08-30-2005, 08:35 PM

California: 46.76% Wholesale Price Tax plus 7.5 % Sales Tax

**godfather** · 08-30-2005, 08:39 PM

Originally Posted by Hugh Jorgan

California: 46.76% Wholesale Price Tax plus 7.5 % Sales Tax

Ok, so I guess that sounds about right then. The guy is making ~53% on top of wholesale/taxed price. That's it, I'm moving!!!!! Taxes here are brutal, wow...welcome to California :).

**Roham** · 08-30-2005, 10:53 PM

Still a good way to try your smokes before your shell out the dough for a box. Local shops have their place

**cigar no baka** · 08-30-2005, 11:23 PM

Originally Posted by Hugh Jorgan

California: 46.76% Wholesale Price Tax plus 7.5 % Sales Tax

Ah yes, another factoid about why Texas is a great state and California is a moochers paradise!!!

**grand cru no 2** · 08-30-2005, 11:44 PM

Originally Posted by cigar no baka

Ah yes, another factoid about why Texas is a great state and California is a moochers paradise!!!

Fuggin' A right!

**TheSilentChamber** · 08-31-2005, 03:21 AM

Texas triumphs again. The local shops (local... 40 miles from here...) usually run about 30% more than online prices, which usually puts it right about MSRP on most things. Also the local stores only sell singles.

**TheVitaleMob** · 08-31-2005, 03:50 AM

Here in Washington (state), until July 1st of this year, the non-cigarette tobacco tax was 130% + 8.9% sales tax. It went down to 40% + sales tax after July 1st. Here, we were paying 300%+ because of dealer markup for singles and boxes in the B&Ms.

**PuffTheMagicDragon** · 08-31-2005, 07:36 AM

Originally Posted by TheVitaleMob

Here in Washington (state), until July 1st of this year, the non-cigarette tobacco tax was 130% + 8.9% sales tax. It went down to 40% + sales tax after July 1st. Here, we were paying 300%+ because of dealer markup for singles and boxes in the B&Ms.

I was in MI a coulpe weeks ago and I couldn't believe the prices due to taxes. Here in WV, prices are decent, right around MSRP.

**SuperChuck** · 08-31-2005, 07:40 AM

You might try poking around for additional local shops. The shop near my office is pretty good (The Humidor on Thames Street in Newport, RI), if a little expensive.

Then I heard about another shop on the radio (Regency in East Greenwich) that was supposed to have an amazing selection. It was okay, sold a couple niceties like Hemingways, but was a little pricey.

Then, scouring the web a little more, I came across a sketchy-sounding place in West Warwick (not the best of neighborhoods). Turns out it's just around the corner from where I used to live, so I thought I'd stop by there on the way to practice. I just about missed it because it was actually inside a liquor store. I thought a minute about just turning the car off, but it wouldn't kill me to look around.

They have the best selection in the state and some of the best prices I've seen! (and being in a liquor store, they're open 'til 10pm)

So shop around, maybe you'll find a less expensive shop.

But more important... How was the service?

**godfather** · 08-31-2005, 10:24 AM

Originally Posted by SuperChuck

So shop around, maybe you'll find a less expensive shop.

But more important... How was the service?

The service was ok. I say ok because while the guy is happy to make cigar recommendations, I always get the impression and feel like I'm bothering him when I try to strike up conversation to learn more about cigars (since I'm a newbie).

We only have two cigar shops in town, and one of them went out of business :). Good idea about going to a liquor store to look at cigars.

--Question--: I've read on the forums that it is NOT a good idea to buy cigars unless the dealer has them humidified. Should I follow this advice? Did your person at the liquor store keep their smokes humidified?

Thanks!

**TheSilentChamber** · 08-31-2005, 10:28 AM

Pretty sound advice unless you like like smoking dried out cigars.

**SuperChuck** · 08-31-2005, 11:28 AM

Originally Posted by godfather

The service was ok. I say ok because while the guy is happy to make cigar recommendations, I always get the impression and feel like I'm bothering him when I try to strike up conversation to learn more about cigars (since I'm a newbie).

We only have two cigar shops in town, and one of them went out of business :). Good idea about going to a liquor store to look at cigars.

--Question--: I've read on the forums that it is NOT a good idea to buy cigars unless the dealer has them humidified. Should I follow this advice? Did your person at the liquor store keep their smokes humidified?

Thanks!

Did he give you the impression he was annoyed by you?

He could be a bit on the snobby side. The tobacconist I used to go to in Providence was a little snotty at times. If I'd go in for a pack of cigarettes, he always looked like I was being a pain in his ass, actually purchasing something from his store!

You might want to look outside your town to find a good smoke shop. My favorite shops are located all over the state (which isn't too awful in RI). :)

I was concerned about the state of the cigars in the liquor store would be, too. I figured it would be the usual plexiglass case with the door that doesn't shut all the way. However, this place was really amazing. It was actually a full-service tobacconist's shop, it just happened to be located inside a liquor store.

The brilliant part is the girl working the tobacco counter could do other stuff around the store, like stocking booze, which I imagine reduces the cost of running the tobacco shop.

**Scientific** · 08-31-2005, 11:42 AM

Godfather,

Where in Cali do you live? If you live in the Bay area or travel up her I can give you the names of a few good shops. As well as the one I work in

. As already stated Cali tabacco taxes are at about 47% add on top of that our 8.75% sales taxes, it adds up. The boxes are shipped to the stores pre-tax, then the onwer figures what he owes the state.
Example 100$ box = 47$ in taxes. Total cost to the store is now 147$ + cost of running the store+ profit (onwers gotta eat to) typical mark up is about double that 147$ or 300% of wholesale. Adds up quick huh.

**Corona Gigante** · 08-31-2005, 01:31 PM

Originally Posted by SuperChuck

My favorite shops are located all over the state (which isn't too awful in RI). :)

When I visited Providence--I *love* that town--I keep telling my daughter she's going to Brown and we're all going to move up there--I went to a cigar shop called the Red something or other. Smelled great when I walked in there and the guy running the place was very helpful. I don't remember what the prices were like. I only bought one stick--a Monte #2--but he still made me feel like a valued customer.

**SuperChuck** · 08-31-2005, 02:44 PM

Originally Posted by Corona Gigante

When I visited Providence--I *love* that town--I keep telling my daughter she's going to Brown and we're all going to move up there--I went to a cigar shop called the Red something or other.

Red Carpet?

I'll have to give them a look next time I'm up on the hill.

In a former life, I used to work at the bottom of the hill by Waterplace Park (I actually worked next to Washington Park, which is the next park down the river from Waterplace)

**godfather** · 08-31-2005, 03:16 PM

Originally Posted by SuperChuck

Did he give you the impression he was annoyed by you?

He could be a bit on the snobby side. The tobacconist I used to go to in Providence was a little snotty at times. If I'd go in for a pack of cigarettes, he always looked like I was being a pain in his ass, actually purchasing something from his store!

Yeah, that's a good way of putting it, he was definitely on the snobby side. I think the next time I go in I'll introduce myself, let him know I'm new to cigars and that I'm interested in trying different cigars to find out what I like and don't like.

Honestly (I'm sure this is open to debate), I think when younger people like myself (I'm in my mid twenties), get into hobbies like wine or cigars...we're not taken seriously by SOME (_not all_) vendors. I get the impression they think we're not taking this very seriously, we'll phase out of the hobby quickly, or don't have a lot of money to spend and won't become 'frequent customers.' Why? Because we're young in their eyes and they immediately label us like the rest of our age group.

Maybe I'm wrong, but I bet if I was in my 40's I'd probably get a little different treatment. Like I said, I come across the same type of bias with wine. I notice once I prove to them I know a decent amount of information about the topic, I'm taken seriously.