stone
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First Name: Jeff
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Post by stone on Apr 8, 2019 12:02:16 GMT -5
I am curious, I have a pretty large B&M near me and I stopped by today and was surprised at how high their prices were on tins; about 45%-50% more than P&C. I wanted to support them so I bought some accessories and some of their house blends. Their cigars were high too but not that high by percentage.
Is it normal for a B&M to be that high?
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Post by McWiggins on Apr 8, 2019 12:05:56 GMT -5
Yes it is. They have a higher cost of doing business than an online only store.
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Post by sperrytops on Apr 8, 2019 12:35:22 GMT -5
Yes, they have high cost retail space and overhead, have to charge sales tax which depends on state as to how high it is.
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Post by pappyjoe on Apr 8, 2019 12:42:16 GMT -5
The following is my opinion and may be incorrect in some aspects.
First off, their wholesale price is close to the retail price of on-line retailers.
Secondly, each state has its own set of tobacco excise taxes which the local B&M has to pay, so add that to the B&M overhead. These taxes vary from state to state and the on-line retailer is not necessarily required to pay them since they are not in that state.
Third, the local B&M has to pay their rent, utilities, employees and other various overhead expenses. To make a profit, the B&M has to factor these into the price of the tobacco also.
Fourth, not included in the retail price but consumers also have to pay the local and state taxes and fees.
A quick note about taxes. In many states consumers are now receiving letters advising them that they in fact do owe taxes on items purchased out-of-states and from on-line retailers. This is nothing new because the CPA who does my taxes asks about out of state/online purchases every year. It's just now riling up some smokers because they have purchased on-line for years and have never worried about paying taxes.
I've even seen some people get angry at on-line retailers for following the law in their states and reporting purchases for which sales taxes were not collected. It's not the on-line retailers fault when you consider the penalties they would have to pay or the chance of getting their business shut-down for not following the law.
edit: By the way, last year I spent less than $100 on-line at tobacco retailers. I made the choice to support my local B&M and not pay the shipping costs. If I want a tobacco blend they don't carry, they will order it for me.
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Post by blackmouth210 on Apr 8, 2019 13:47:26 GMT -5
I am curious, I have a pretty large B&M near me and I stopped by today and was surprised at how high their prices were on tins; about 45%-50% more than P&C. I wanted to support them so I bought some accessories and some of their house blends. Their cigars were high too but not that high by percentage.
Is it normal for a B&M to be that high?
As others already posted above, it is quite common for b&m prices to be higher than online retailers' prices. I can't really add much to that because the previous posters explained it perfectly. What I would like to add is this: Make sure the "house blends" you get from your local b&m are blends the "house" actually blended themselves. Fewer and fewer b&m's are actually tobacconists. At some b&m's 100% of bulk blends sold as "house blends" are actually relabeled tobaccos blended by mfr's like Lane, PS, and others. Sure there are b&m's that DO still blend some of their own bulk pipe tobacco. But, even some of those real tobacconists still offer SOME relabeled bulk blends. And those relabeled blends will sit right alongside their own custom-blended tobacco. So, know what you are buying. I'm not trying to dissuade you from buying from your local b&m. I think that's a great idea. I just wanted to inform you of the relabeling practice in case you were unaware of it.
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stone
Full Member
Posts: 996
First Name: Jeff
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Post by stone on Apr 8, 2019 13:58:24 GMT -5
I am curious, I have a pretty large B&M near me and I stopped by today and was surprised at how high their prices were on tins; about 45%-50% more than P&C. I wanted to support them so I bought some accessories and some of their house blends. Their cigars were high too but not that high by percentage.
Is it normal for a B&M to be that high?
As others already posted above, it is quite common for b&m prices to be higher than online retailers' prices. I can't really add much to that because the previous posters explained it perfectly. What I would like to add is this: Make sure the "house blends" you get from your local b&m are blends the "house" actually blended themselves. Fewer and fewer b&m's are actually tobacconists. At some b&m's 100% of bulk blends sold as "house blends" are actually relabeled tobaccos blended by mfr's like Lane, PS, and others. Sure there are b&m's that DO still blend some of their own bulk pipe tobacco. But, even some of those real tobacconists still offer SOME relabeled bulk blends. And those relabeled blends will sit right alongside their own custom-blended tobacco. So, know what you are buying. I'm not trying to dissuade you from buying from your local b&m. I think that's a great idea. I just wanted to inform you of the relabeling practice in case you were unaware of it. They have been selling the same house Blends for 20 years but I'm glad you mentioned this because I will pay attention to it wherever I go.
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Post by trailboss on Apr 8, 2019 14:09:40 GMT -5
Nothing much to add to this that hasn’t already been said, but from the perspective of being a pipe club member, the B&M tobacconist we meet at provides a smoking oasis for us to meet at, and we all make sure we spend money on every visit.
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Post by blackmouth210 on Apr 8, 2019 14:11:18 GMT -5
As others already posted above, it is quite common for b&m prices to be higher than online retailers' prices. I can't really add much to that because the previous posters explained it perfectly. What I would like to add is this: Make sure the "house blends" you get from your local b&m are blends the "house" actually blended themselves. Fewer and fewer b&m's are actually tobacconists. At some b&m's 100% of bulk blends sold as "house blends" are actually relabeled tobaccos blended by mfr's like Lane, PS, and others. Sure there are b&m's that DO still blend some of their own bulk pipe tobacco. But, even some of those real tobacconists still offer SOME relabeled bulk blends. And those relabeled blends will sit right alongside their own custom-blended tobacco. So, know what you are buying. I'm not trying to dissuade you from buying from your local b&m. I think that's a great idea. I just wanted to inform you of the relabeling practice in case you were unaware of it. They have been selling the same house Blends for 20 years but I'm glad you mentioned this because I will pay attention to it wherever I go. A lot of the bulk pipe tobacco blended by big mfr's and popular with b&m's for relabeling as "house blends" have been around for way more than 20 yrs. I'm not saying your b&m is relabeling. I just want to point out that relabeling has been going on for much more than 2 decades. And plenty of the same bulk blends that were being relabeled in the 90's are still available today. That the b&m has been selling something as a "house blend" for 20 yrs is no indication that it's blended in house.
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Deleted
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Post by Deleted on Apr 8, 2019 18:47:51 GMT -5
The following is my opinion and may be incorrect in some aspects. First off, their wholesale price is close to the retail price of on-line retailers. Secondly, each state has its own set of tobacco excise taxes which the local B&M has to pay, so add that to the B&M overhead. These taxes vary from state to state and the on-line retailer is not necessarily required to pay them since they are not in that state. Third, the local B&M has to pay their rent, utilities, employees and other various overhead expenses. To make a profit, the B&M has to factor these into the price of the tobacco also. Fourth, not included in the retail price but consumers also have to pay the local and state taxes and fees. A quick note about taxes. In many states consumers are now receiving letters advising them that they in fact do owe taxes on items purchased out-of-states and from on-line retailers. This is nothing new because the CPA who does my taxes asks about out of state/online purchases every year. It's just now riling up some smokers because they have purchased on-line for years and have never worried about paying taxes. I've even seen some people get angry at on-line retailers for following the law in their states and reporting purchases for which sales taxes were not collected. It's not the on-line retailers fault when you consider the penalties they would have to pay or the chance of getting their business shut-down for not following the law. edit: By the way, last year I spent less than $100 on-line at tobacco retailers. I made the choice to support my local B&M and not pay the shipping costs. If I want a tobacco blend they don't carry, they will order it for me. This is truth. Also B&M's will typically sell merchandise keystone, that's fancy talk for 2X wholesale price. I can tell you that online retailers sell much lower then keystone and their plan is volume.
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Post by daveinlax on Apr 8, 2019 19:25:18 GMT -5
Their cigars were high too but not that high by percentage.
Is it normal for a B&M to be that high?
Many cigars brands are price protected. At one time I could buy pipe tobacco at about the same price online as my small shop could buy it from their jobber. I still spend plenty of money in shops so I have a place to hang out.
I'm surprised you can still mail order tobacco. Since WI allowed online wine/ liquor sales I've had to jump through a couple of layers of ID hoops where I've never been asked for an ID to buy or take delivery of tobacco.
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captblack
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Favorite Pipe: Peterson, Tsuge, Savinelli
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Post by captblack on Apr 9, 2019 12:31:07 GMT -5
Nothing much to add to this that hasn’t already been said, but from the perspective of being a pipe club member, the B&M tobacconist we meet at provides a smoking oasis for us to meet at, and we all make sure we spend money on every visit. This exactly. I buy nicer tobaccos at B&Ms near me, and bulk tobacco online. B&Ms here have some hellish taxes that they cant entirely pass on to the buyer, so it is shown on their tin prices. But they always have tins that are in high demand and are always very helpful and kind. And they provide a place to relax and enjoy a bowl or two.
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Post by kxg on Apr 9, 2019 13:06:56 GMT -5
I try to support my "local" B&M shop, which is 4 hours away in Wichita, every time I'm in town. Their tobacco selection is fair (cigar selection is better than fair) and they have a decent pipe and accessory selection. The one place they really shine is having some difficult to find online selections. Last week I snagged two tins of Esoterica And So To Bed for $17.00 a tin. That is comparable to online pricing and even better, it was available. Some tin prices are higher, as has been explained, but I still try to buy a few tins as a way to support them. They are great to deal with and they have a fine smoking lounge that I occasionally use. I'm glad they are there.
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Post by trailboss on Apr 9, 2019 15:22:19 GMT -5
I try to support my "local" B&M shop, which is 4 hours away in Wichita,.. Whenever I make it back to Wichita, I try to go to the Humidor on the west side... really nice people, not a huge selection of pipe tobacco’s but what they had was some of the good stuff...which one do you go to? The Humidor Cigars and Lounge 8558 W 21st St, Wichita, KS 67205 (316) 440-4890 goo.gl/maps/mhtMonXD6RG2
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Post by peteguy on Apr 9, 2019 16:29:08 GMT -5
T A X E S
The rest is markup.
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Deleted
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Post by Deleted on Apr 9, 2019 16:38:44 GMT -5
T A X E S The rest is markup. Bullshit. Healthcare, IRA retirement contribution or maybe a week of vacation a year? No complaints here with any of those markups but the anti-government cuckoo bird nonsense won't fly here.
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Post by peteguy on Apr 9, 2019 16:47:27 GMT -5
T A X E S The rest is markup. Bullshit. Healthcare, IRA retirement contribution or maybe a week of vacation a year? No complaints here with any of those markups but the anti-government cuckoo bird nonsense won't fly here. Ummm, what anti-governement cuckoo bird nonsense? That is all there is that is different than an online outlet. In Utah the taxes are 86%/Cost plus federal taxes plus sales tax.. The rest is markup. I don't bring my feelings on politics into a thread.
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Deleted
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Post by Deleted on Apr 9, 2019 16:59:17 GMT -5
Bullshit. Healthcare, IRA retirement contribution or maybe a week of vacation a year? No complaints here with any of those markups but the anti-government cuckoo bird nonsense won't fly here. Ummm, what anti-governement cuckoo bird nonsense? That is all there is that is different than an online outlet. In Utah the taxes are 86%/Cost plus federal taxes plus sales tax.. The rest is markup. I don't bring my feelings on politics into a thread. The subject of the thread is brick and mortar cost. Hate to break it to you jack but B&Ms have costs beyond taxes. This has nothing to do with state tax! Sorry about your luck in Utah, really, but by all means feel free to continue with your anti-tax rant..
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Post by peteguy on Apr 9, 2019 17:06:06 GMT -5
And I am out
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Post by kxg on Apr 9, 2019 18:31:57 GMT -5
I try to support my "local" B&M shop, which is 4 hours away in Wichita,.. Whenever I make it back to Wichita, I try to go to the Humidor on the west side... really nice people, not a huge selection of pipe tobacco’s but what they had was some of the good stuff...which one do you go to? The Humidor Cigars and Lounge 8558 W 21st St, Wichita, KS 67205 (316) 440-4890 goo.gl/maps/mhtMonXD6RG2I frequent Cigar Chateau 3049 N ROCK ROAD WICHITA, KS 316-636-2433 cigarchateau.com/I May have been in The Humidor, I’ll try to check it out. After looking at the map, I have not not been there, but I will remedy that.
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