Clandestine cigars?

havanaal

How is it that some brands refuse to allow general advertising and catalogue sales? The brand that comes up the most here lately is San Lotano, but I know there are others. I don't understand why someone would produce a product and not hope to market it as widely as possible. So...the question is Why?

drpepperdude

kuzi16

havanaal

I understand the boutique concept, but I would still think profit margins favor mass marketing. Interesting business, this cigar thing.

xmacro

havanaal:

I understand the boutique concept, but I would still think profit margins favor mass marketing. Interesting business, this cigar thing.

It certainly is an interesting industry; not only the people, but the consumers I think Alex once said that the entire industry is valued around $1 billion (so yeah, Bill Gates could buy the entire cigar industry if he wanted to)

docbp87

havanaal:

I understand the boutique concept, but I would still think profit margins favor mass marketing. Interesting business, this cigar thing.

There is currently a huge move to support B&M shops in the industry, since they are sort of the last refuge for the cigar smoker to partake of their hobby unfettered by growing legal BS. Online and mail order services are usually able to sell their product at significantly lower prices, because their volume is generally so great that it makes up for it. The B&Ms need help, and producing products that are only available at them forces interested smokers to support their locals. I love this idea, and am glad that people like AJ are doing this.

havanaal

Agree. Unfortunately, there are many of us that don't live near a decent B&M. I used to have a great one, but NY successfully taxed it out of existence.

firetruckguy

havanaal:

Agree. Unfortunately, there are many of us that don't live near a decent B&M. I used to have a great one, but NY successfully taxed it out of existence.

+1

dowjr1

Yes I too love (as most of us do) finding a good deal on cigars online. That said, I make a concerted effort to stop in the local B&M occasionally and buy some sticks. Often they have something I couldn't easily find online or I can buy one or two of something I want to try and not have to buy a 5 or 10 pack.

One2gofst

havanaal

Very true in a limited production line. If you produced, say 10,000 high performance sports cars you may allocate a few each to the high end dealers, knowing you can sell them all. There would be no point in getting them out to the brokers, or even advertising them. Sold. But it's a lot easier to match a $6 cigar to a buyer. And even the top of the line products are offered all over the world through multiple outlets. My only point is that by granting preference to exclusive dealers, you are shutting out thousands of consumers who should also count as fans of the product.

One2gofst