Price creep . . . is it just me?

[Not A Nice Person]

I started smoking cigars about 15 years ago, and have gotten serious about it for about the last decade.

One thing I've noticed is lately is that when I first started smoking, an RyJ Bully was a go-to, treasured, sought after $5 smoke for me, and things like the $2 Flor de Oliva Habano 2000 were a staple.

Later, most cigars I really liked could be found in the $4-6 dollar range, and there were a wealth of choices available at that price point. I felt like I could get a terrific cigar for $5.

Now, while some things like the Torano Exodus '59 are still a regular in my rotation at about $3.50 a pop by the box, most cigars I find myself loving---and most new cigars in general---seem to be hitting in the $7-9 range. The other day, at my local B&M's Friday herf, another regular actually asked me if I ever smoked anything that sold for less than $10!

I find myself wondering---have my tastes simply evolved, or is a $9 cigar actually the new $5 cigar? It seems like whenever something new and terrific comes out, cigar manufacturers are targeting a higher price point than they used to . . . inflation? Or simply the reality of what it costs to bring this kind of quality to market?

When I consider current staples, like Illusion, Esencia, San Cristobal, Tatuaje, and so forth, it seems to me like the flavor profiles are well above and beyond the $5 cigars I used to favor . . . and while there are still a few, like Torano and Cusano, that are producing a good product at a lower price point, the complexity and strength simply aren't there.

Have good smokes really gotten that much more expensive? Are economies of scale pushing the 'boutique' houses' prices up? Or is it just inflation?

~Boar

 

[Joho]

The other day I was staring at a food vending machine at my school thinking about how those little bags of potato chips have doubled in price since my childhood. I'd go with inflation.

 

[Golfanatic]

Great post Boar! I am going with inflation and tax laws.

 

[JHolmes763]

Good question. I have no idea on the answer but I like your selection in cigars (minus to Toranos!).

 

[ironpeddler]

I think it's a combination of things...."market will bare" being the largest issue. Inflation and taxes here in the US are a portion and (minimally) higher wages being given to the 3rd World Country employees are a factor as well. But all in all, I think manufacturers are going the way of the Fuente School of Marketing...if the brand is marketed/hyped correctly, the quality is kept relatively consistent, and they strike gold with the blend...they will charge more for it. So I agree whole heartedly with you Boar, the old $5 cigar is the new $9 cigar.

Take the Macanudo 1968 line as an example. First there was the hype at the IPCPR trade show and retailers boasted about it's bold, new flavor (different blend for the show?) Then they came out at a $8.50 MSRP price point for a robusto size and a lot of us went out and bought a few from any retailer that offered a discount on them under that MSRP. After we all smoked them, they were, at best, a $3 to $4 cigar. You could have found them for $2 a stick at the end. The point being, they tried to sell them for way more than they were worth...but if they hit a HR with them (regardless of the manufacturing cost) they would have held the price as originally stated. They're even hard to find now from any retailer less than a year after their release. Most MFGers start out with an inflated MSRP because they can always go down in price, going up is hard. You can't blame them, they're out to make profit just like the rest of us.

Good cigars are good cigars...but if they are very well received, the price will stay at the inflated MSRP and slowly increase if the demand is strong. I was talking to a cigar rep and he was a little pissed at the overall marketing of his company. He said if a new cigar would come out and was well received but priced at a bargain, his company would re-brand the cigar into another label/line (using the same blend) and price them higher. That practice has been going on for many years but he was relatively new to the industry.

When all is set and done....we all need to keep price in mind when reviewing a cigar. Like I said, a good cigar is a good cigar...but at what price?

For me, cigars are like wine. We all search for that good bottle of wine for under $10 a bottle...that search is really fun. Cigars, the same thing, we all search for that diamond in the rough for under $4 or $5.

Unfortunately, they are both getting more difficult to find these days as apposed to yesteryear.

 

[Bonfire Smoke]

Good write up iron. Speaking of the 1968 I saw one last week at my local B&M for $15.00. I laughed, I still have one from the internet offer and when it's gone that is it.