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Do you think cigar prices will go down?

Easto

Easto

New Member
Joined
Feb 27, 2008
Messages
123
I don't know about any of you but the economy is taking a little bite out of my investments. I was also out this weekend and it's apparent that more and more people are staying home i.e. the freeways are emptying and restaurants seem empty too.

Sooner or later something is going to have to give. Do you think cigar prices will be one of them?
 
Easto said:
I don't know about any of you but the economy is taking a little bite out of my investments. I was also out this weekend and it's apparent that more and more people are staying home i.e. the freeways are emptying and restaurants seem empty too.

Sooner or later something is going to have to give. Do you think cigar prices will be one of them?
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That's exactly opposite of my experience up here (other than the investment hits). There are a ton of hunters coming from all over, the roads are full of leaf watchers, the restaurants are as busy as they always are and we just went to an exhibition hockey game last night in an arena with more people than I've seen in there in a long time. The stores are as busy as always, too.

It's amazing how different the situation is in different places.

Now, to answer your question: The days of $30 sticks may be numbered, but I doubt we'll ever see huge price drops in the sub $10 range. There may be some movement, but I just don't see how they could move much.

I think we may be more likely to see the exodus of product lines and even makers before prices move very much.

I have no insider info or even any real knowledge of the industry's inner workings, so my opinion may not be worth much on this matter. :laugh:
 
I think we need to be worried about SCHIP and whether or not it passes(or has a flat tax). That would turn the cigar industry upside down.
 
I don't know what SCHIP is, but regardless, I hope cigar prices don't go down! I convinced my wife it was a wise investment for retirement! :laugh:

But seriously, the local market will be affected, but some cigars are always in demand worldwide, and I don't see the prices dropping significantly.

Just as LilBastage said, I don't know anything so my opinion is probably worthless. :blush:


Marcos
 
SCHIP in a nutshell was a tax that was to be put on cigars to fund health care for needed children (thats is a very brief summary). I am not sure what the actually numbers were, but I seem to remember it more than doubling the price of every cigar.
 
Breedy said:
SCHIP in a nutshell was a tax that was to be put on cigars to fund health care for needed children (thats is a very brief summary). I am not sure what the actually numbers were, but I seem to remember it more than doubling the price of every cigar.
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Search is your friend! :D
 
Breedy said:
SCHIP in a nutshell was a tax that was to be put on cigars to fund health care for needed children (thats is a very brief summary). I am not sure what the actually numbers were, but I seem to remember it more than doubling the price of every cigar.
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Not only cigars but tobacco in general. Yes, the impact on cigars would be tremendous.
 
Whenever the economy takes a dip like this, the end retailer always takes the first hit. Yet, they are the one part of the sales chain that can least afford to take a cut in profit.

The manufacturers will stay the course, price wise, until the orders drop...then they're "We need to keep the prices where they are due to the high cost of bringing them to market" rhetoric goes out the window.

Cigars are the same as any other retail Industry. The products that survive are the ones when all those involved team up and work together to ride out the storm by sharing in the loses at each level.
 
I hope prices go down....and I think they will depending on how long this downturn lasts.
 
It seems that here in Arizona, that prices have actually increased. It's as if the shops are moving less quantity, so they have bumped price to compensate.
 
Other cigar brand names may go down in price for sure due to state of the economy.

But not Pepin and Fuente. And you know why, because they are KOOL-AID.

Every one that is alive on this planet Earth need KOOL-AID, it is the blood running through the body. No KOOL-AID, no homo sapiens.

Heeeee, Heeeee, Heeeee :laugh: (Just joking... But the cigar brand and KOOL-AID analogy are true though)
 
I don't like it, but I think I've seen most prices rise. I hope I'm wrong and pricing comes down, else I'll have to really curb things.
 
Mostly a rhetorical question, but have you ever seen prices of anything go down?

I just don't see it happening -- fuel prices go up, credit harder to get for businesses, etc.

Maybe if demand goes down, prices might dip a little. But like all things on this earth, I think the price of a $.05 cigar will keep going up, up, up.

Call me cynical...
 
It'd be nice if they did, but I think gas prices will have to drop more first, and stay dropped . . . since they skyrocketed, every stick in my local B&M has gone up $1-2.

~Boar
 
No way will prices go down. That's the thing about Vices, when things are good people smoke and drink a lot, when they are bad they smoke and drink even more. You may see some temporary price reductions from the weaker retailers as they fight to stay alive. This market will only weed out the weak, while the strong will continue to grow and prosper. As has always been the case.
Swisher was adding hundreds of employees in the middle of the great depression while others were floundering.
I believe we will see some retailers fail and the better ones will pick up their client bases which will exceed any short terms loses caused by less spending.


Just my .02 cents
 
Products that are not affected by a recession - if you can
eat it,
drink it,
smoke it
wipe your behind with it

I believe cigars fall into one of these categories. (may be more for others)

So no I do not think prices will go down.
 
puffstuff said:
No way will prices go down. That's the thing about Vices, when things are good people smoke and drink a lot, when they are bad they smoke and drink even more. You may see some temporary price reductions from the weaker retailers as they fight to stay alive. This market will only weed out the weak, while the strong will continue to grow and prosper. As has always been the case.
Swisher was adding hundreds of employees in the middle of the great depression while others were floundering.
I believe we will see some retailers fail and the better ones will pick up their client bases which will exceed any short terms loses caused by less spending.


Just my .02 cents
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Now heres a man that knows about the Great Depression, the general mood of the comman man is 'Give me a bit to drink and smoke and to Hell with the rest of the world' :laugh:
 
The bottom-end manufacturers are going to do okay - they compete on price, and the underlying "value" is production costs. The top-end manufacturers (Davidoff, Graycliff, Habanos SA) are going to do okay, too, because they compete on rarity and in a global market. The ones that lose their shirts are going to be in the mid-tier, especially ones that are currently in growth mode (and therefore don't have facilities fully paid-off, like La Aurora or Fuente). Pure marketing organizations, like Rocky Patel, could be in danger as well.
 
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