OMG! Have you read Mowee's piece on the RTDA this year?

[Brazilla]

I don't know much about profit margins on cigars (although I would suspect General has one of the highest) but I would think starting this Mac 68 at a lower price would have a distinctive marketing advantage.

I don't know much about profit margins on cigars (although I would suspect General has one of the highest) but I would think starting this Mac 68 at a lower price would have a distinctive marketing advantage.

In what sense? Tell us a little more about what you're thinking.

Wilkey

If you wish Straight from Cigar World

General Cigar Company, a subsidiary of Swedish Match, is the largest manufacturer and marketer of premium, imported, hand-made or hand-rolled cigars in the United States. General Cigar produces Macanudo, Partagas, COHIBA, Punch, Excalibur,Hoyo de Monterrey, La Gloria Cubana and several other leading premium brands. In addition, the company grows its own premium Connecticut Shade wrapper tobacco, as well as natural and candela wrapper in the Dominican Republic. General Cigar also operates Club Macanudo, a cigar bar in New York City. Based in Richmond, Virginia, General Cigar sells through tobacconists nationwide.

General Cigar also charges more for it's brands than most every other manufacturer. Ask any retailer and he will tell you that just keeping up with their price change increases is a nightmare. The latest price increase for cigars, across the board, were described as a necessity from increasing shipping costs. General increased their prices a full month before any other manufacturer listed their intent.

General is trying to revive interest in the Mac brand among serious cigars smokers, I would think, with the introduction of the Macanudo 1968. Wouldn't an excellent enticement be a lower retail cost? Current is $8.50 to $11. Now that reflects Mac prices but is still just a little high for a cigar of the Mac 68 caliber. We have raved, myself included, about this cigar but only to the extent of it being a Macanudo. It's really more of a surprise than a industry busting new invent to the cigar business. Having said that, my thought was “shouldn't they charge a little less, at least at first, to address an obvious milestone for the Macanudo brand.

 

[Lightninrod]

Just got mine this AM and smoked the smaller stick after lunch. It was a great smoke and a gorgeous wrapper with a perfect draw! Really enjoyed it.


Dan

 

[Ginseng]

I don't know much about profit margins on cigars (although I would suspect General has one of the highest) but I would think starting this Mac 68 at a lower price would have a distinctive marketing advantage.

In what sense? Tell us a little more about what you're thinking.

Wilkey

If you wish Straight from Cigar World

...

General is trying to revive interest in the Mac brand among serious cigars smokers, I would think, with the introduction of the Macanudo 1968. Wouldn't an excellent enticement be a lower retail cost? Current is $8.50 to $11. Now that reflects Mac prices but is still just a little high for a cigar of the Mac 68 caliber. We have raved, myself included, about this cigar but only to the extent of it being a Macanudo. It's really more of a surprise than a industry busting new invent to the cigar business. Having said that, my thought was “shouldn't they charge a little less, at least at first, to address an obvious milestone for the Macanudo brand.

So they're basically saying that pricing the cigar lower, presumably on its subjective merits (e.g., performance in a blind taste test) would make more sense than pricing it consistently with the rest of the Macanudo line (e.g., premium pricing)?

I can see their point, but I think that General must have made the decision to hold the line on price and maintain the Macanudo premium rather than erode margins on a new line in the hopes of attracting new smokers. I can't say as I disagree with that strategy.

Basically, the expectation is that the cigar will grab an extra buck or two simply because it is a Macanudo and that pricing will be in line with other comparable premium, medium-full sticks (e.g. Ashton VSG, Tat Brown). That's not crazy. Or maybe it is. I suppose time will tell.

Wilkey

8,000

 

[Brazilla]

I see your point and it's probably makes much more sense profit wise. I guess my point was the discussion here has ranged from "You're $hitting me!" to "I am programed to not believe anything good about Macanudos." The amount of convincing to the general public might be eased by a slight reduction in the price, but it was just a thought.

 

[DesertRat]

Got my sampler in the mail today. They came packaged quite well and in perfect condition. The sticks look tasty! It will probably be a few days before I smoke one but I looking forward to trying them out.

Danny

 

[KayakinBoy]

I tried it. They are ok. Was it worth $10 for 3? Yes Are they worth $10 a piece? No. Personally, if I were going to smoke a Macanudo, I'd smoke one from the robust line before I would one of these again.