Cigar economics

JZerby · April 2012

my question is simple: how is the price of a cigar determined? I walked into CVS today and noticed their Blend Masters or whatever junk they carry are between 3 and 9 dollars for singles. But the same holds true for the cigars in the local Tinder Box store (although they go further up into the $28 range for the most expensive. But the $3 cigars at Tinderbox are things like Punch and I think a Romeo Y Juliet. How can a cheap drug store cigar cost the same as Punch, which is far superior?

jlmarta · April 2012

The correct price for anything is whatever someone will pay for it - regardless of what the item is.

Krieger · April 2012

jlmarta:
The correct price for anything is whatever someone will pay for it - regardless of what the item is.

this

allsmokedup · April 2012

Price discrimination

Gray4lines · April 2012

Price doesn't always equal value. Also, price is used to set the expectations of the consumer. If you see a $3 it is presumably better than a 3 for $1 swisher and not quite as good as an $8 tatuaje. So while price can reflect the inputs used, cost of goods, biz model of the manufacturer, markup of retailer, and tax, sometimes companies just price to be competitive ie in the same "price" category. Its as much marketing as economics

y2pascoe · April 2012

I went to a cigar louge in the North End of Boston and the OpusX's were listed as being "Market Price", like they were shellfish or something. So I asked the waitress what they were selling for and she told me, "$78 a piece". Wrap your brain around that one.

Steve2010 · April 2012

y2pascoe:
I went to a cigar louge in the North End of Boston and the OpusX's were listed as being "Market Price", like they were shellfish or something. So I asked the waitress what they were selling for and she told me, "$78 a piece". Wrap your brain around that one.

Sad, but true. As long people will pay it, they'll charge it.

jgibv · April 2012

y2pascoe:
I went to a cigar louge in the North End of Boston and the OpusX's were listed as being "Market Price", like they were shellfish or something. So I asked the waitress what they were selling for and she told me, "$78 a piece". Wrap your brain around that one.

Were they Sharks??? If so maybe the lounge got confused and thought they were actually supposed to be priced like shellfish, LOL....

And yes-that's mind boggling.

skweekz · April 2012

y2pascoe:
I went to a cigar louge in the North End of Boston and the OpusX's were listed as being "Market Price", like they were shellfish or something. So I asked the waitress what they were selling for and she told me, "$78 a piece". Wrap your brain around that one.

I think I would have actually laughed at them on that one.

Gray4lines · April 2012

jgibv:
y2pascoe:
I went to a cigar louge in the North End of Boston and the OpusX's were listed as being "Market Price", like they were shellfish or something. So I asked the waitress what they were selling for and she told me, "$78 a piece". Wrap your brain around that one.
Were they Sharks??? If so maybe the lounge got confused and thought they were actually supposed to be priced like shellfish, LOL....

And yes-that's mind boggling.

You were just trying to buy Opus' when they're out of season, silly.

Cigar economics

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