Maufacturers Raising Prices Above SCHIP?!?!

[Patch58]

So I was catching up on my favorite Pod cast, Dogwatch Cigar Radio, and Bob and Dale were discussing the some manufacturers were using the SCHIP tax as a cover to increase the price of their cigar. I hadn't heard of that happening and I was wondering if anyone else has and/or which manufacturers were doing this.

Patch:riflefire

 

[Saully]

Don't know anything about cigar price, but I was at Circle K the other day and noticed that the price of cigarettes (which I don't buy) was astronomical -- a pack of Parliments for $8.04. The clerk said that the tobacco companies raised prices by about 75 cents the week before the tax increase.

On a side note, I noticed a guy here in his 20's with a pack of Parliments hanging out of his pocket. I've heard that's now one of the more popular brands, think it's funny because it used to be a brand for middle aged women like my mom's friends.

 

[Soundwave13]

I heard (from B&M owner) that General will be raising their prices on average $1 per cigar to cover all taxes. I have no verification or proof, but I'm not a fan of 99% of the cigars they produce anyway...

 

[uncelnino]

Yes, I can verify that this is definitely happening, and by more than just General.

 

[hdroadglide]

I heard (from B&M owner) that General will be raising their prices on average $1 per cigar to cover all taxes. I have no verification or proof, but I'm not a fan of 99% of the cigars they produce anyway...

just one more reason, as if it was needed, not to smoke anything from the general.

 

[pfm721]

There have been some legitimate manufacturing cost increases that happened about the same time that SCHIP was passing. I know in Honduras that the labor rate for rollers was increased. If Dion/Vudu wants to he could shed more light on this than I can. Some manufacturers are just raising prices others have legitimate reasons for doing so.

 

[Volusianator]

Fuente is well over the SCHIP taxes as well.

 

[dpmrpa]

Supply and demand my brothers. If we desire those sticks most of us will pay the price.

 

[uvacom]

Supply and demand my brothers. If we desire those sticks most of us will pay the price.

I don't really think that applies here. I haven't heard anything about the supply of cigars changing substantially - there seem to be just as many as ever, so that wouldn't drive a price increase. Demand doesn't seem to be increasing considerably either, certainly not as a result of SCHIPS or in the current economic climate.

If price increases beyond SCHIPS tax are occurring, they are probably due to aggregate increased costs of business since the last time the price was set (i.e. labor costs, distribution costs, etc.). The cigar market is very competitive so manufacturers probably don't want to increase prices if they can avoid it. But some manufacturers might see it as more attractive to give one big price increase when one was (virtually) inevitable instead of two or three smaller increases in close time proximity to a big (and well-publicized) increase such as SCHIPS.

 

[Cigary43]

If my cigar suppliers are going to do that then I will cut my smoking in half and start buying more "seconds" which I have been doing lately. I use C Bid alot more and will not pay the increase. I know what my pricing is and if they keep going up I guess it's a habit I will have to outstrategize them on. I go on vacations outside the US quite a bit and will buy on the islands in the Carribean in case this thing turns into a real PIMA.