Super Premiums (Are They Really Worth It?)

[SouthsideCigar]

Oops, I should have know how this would end up.

I should re-phrase slightly. Asking if something is worth it is not really a fair questions, because what is worth it to some, is not worth it to others.
To reference a post earlier comparing hamburger to ribeye is a good analogy, except that I don't think anyone would argue that a ribeye is better quality and taste than a hamburger (although I am sure someone will respond that they prefer hamburger to ribeye )
What my question really was asking is:
Do super premiums really have better ingredients and construction, etc, thus possibly giving them better chance of having great flavor and experience, or are we really paying for rarity (which doesn't necessarily mean better quality) and name.

Dave

Edited for poor typing/spelling

 

[Ginseng]

Dave,

Your reformulated question is much more answerable and with less value judgment to cloud the issue.

I interpret your question to be whether some expensive cigars are so because of the COGS. COGS stands for the Cost of Goods Sold or the direct cost of making the product. The two major components are materials and labor.

I'm making up the following numbers for illustrative purposes and do not accurately reflect markups or actual cost distributions.

For a $20 cigar (A) that has $10 COGS and of that, let's say $5 is for high quality, well-aged tobacco and $5 is for well-trained torcedors. Then assign $5 for a modest advertising and promotional campaign. That leaves $5 profit.

Now another $20 cigar (B) might have $5 COGS and of that, $2.50 is for inexpensive leaf, $2.50 is for lower skilled rollers, $7.50 is for more elaborate advertising, leaving $7.50 for profit.

From some manufacturers' perspective, Cigar B is the far better deal as the profit margin is higher. They'd make an extra $2.50 per cigar sold. However, from the smokers' perspective, Cigar A, is likely to be perceived as the more "worthy" cigar, all things being equal in terms of smoking experience. I would certainly tend to think this because these cigars use better tobacco, and as they're made by highly skilled rollers, have consistent draw and beautiful construction.

Rarity can manifest at the level of the leaf first (genuine rarity) or at the level of the cigar (contrived rarity). In reality, hard to find cigars are typically some combination of both types. Genuine rarity might be something like a small crop of exceptional wrapper or seco leaf or a special construction that only a few (or one) roller can execute. Because there isn't much of it (and only a low percentage of qualified rollers), you could not make more cigars even if you wanted. Contrived rarity is something that Lew Rothman has railed against, and might be something like artificially restricting production coupled with advertising suggesting that this restriction is based on some meritorious factor. Commonly, it's just because "I said so." So, they could make more cigars, they just choose not to so that supply is artificially depressed, an action that those familiar with basic economics understand will drive the price up.

In answer to your question "Do super premiums really have better ingredients and construction, etc, thus possibly giving them better chance of having great flavor and experience, or are we really paying for rarity and name" I'd have to say it depends. Some do and some don't and it is the quest of the cigar smoker to find the Cigar As nestled in amongst all the Cigar Bs.

Wilkey

 

[Infinity]

Dave,

IMO, you are asking the same question, just re-phrasing it.

My answer is still the same. I don't smoke the cost, I smoke the cigar. Having said that, one has to wonder how some manufacturers are able to market $5 cigars.

Brian

 

[Obanion]

My hormone level must have dropped dramatically last night (a medical condition I am being treated for). Sometimes that helps me to act like a little bitch without knowing it. I don't tell you all this as an excuse for what happened (there is none). Just as an explanation of why. I surely had no intention of dissing BBS.

 

[vortex]

Someone dissed BBS and I missed it? I agree and disagree with most of what most of you said - except BBS, of course!

I also have to satisfy my curiosity about super-premiums sometimes. And special occasions are a great time to do it! But in general they are a set up for disappointment by their very nature. After all, some of our favorite cigars are not that expensive.

Steve

 

[Macion Grey]

Dave,

Your reformulated question is much more answerable and with less value judgment to cloud the issue.

I interpret your question to be whether some expensive cigars are so because of the COGS. COGS stands for the Cost of Goods Sold or the direct cost of making the product. The two major components are materials and labor.

I'm making up the following numbers for illustrative purposes and do not accurately reflect markups or actual cost distributions.

For a $20 cigar (A) that has $10 COGS and of that, let's say $5 is for high quality, well-aged tobacco and $5 is for well-trained torcedors. Then assign $5 for a modest advertising and promotional campaign. That leaves $5 profit.

Now another $20 cigar (B) might have $5 COGS and of that, $2.50 is for inexpensive leaf, $2.50 is for lower skilled rollers, $7.50 is for more elaborate advertising, leaving $7.50 for profit.

From some manufacturers' perspective, Cigar B is the far better deal as the profit margin is higher. They'd make an extra $2.50 per cigar sold. However, from the smokers' perspective, Cigar A, is likely to be perceived as the more "worthy" cigar, all things being equal in terms of smoking experience. I would certainly tend to think this because these cigars use better tobacco, and as they're made by highly skilled rollers, have consistent draw and beautiful construction.

Rarity can manifest at the level of the leaf first (genuine rarity) or at the level of the cigar (contrived rarity). In reality, hard to find cigars are typically some combination of both types. Genuine rarity might be something like a small crop of exceptional wrapper or seco leaf or a special construction that only a few (or one) roller can execute. Because there isn't much of it (and only a low percentage of qualified rollers), you could not make more cigars even if you wanted. Contrived rarity is something that Lew Rothman has railed against, and might be something like artificially restricting production coupled with advertising suggesting that this restriction is based on some meritorious factor. Commonly, it's just because "I said so." So, they could make more cigars, they just choose not to so that supply is artificially depressed, an action that those familiar with basic economics understand will drive the price up.

In answer to your question "Do super premiums really have better ingredients and construction, etc, thus possibly giving them better chance of having great flavor and experience, or are we really paying for rarity and name" I'd have to say it depends. Some do and some don't and it is the quest of the cigar smoker to find the Cigar As nestled in amongst all the Cigar Bs.

Wilkey

Thats what I was trying to articulate before, but you have done it in a much more specific and concise way.

Perfect answer, and that is why we should value unbiased sites like this to sort the sham from the splendid.

 

[Eric @ The Party Source]

I do think they are worth the money because if you want to experience that level of quality thats the price you will pay. If I had the money I would buy as many 1926 #9 Maduros I could.

 

[Macion Grey]

I do think they are worth the money because if you want to experience that level of quality thats the price you will pay. If I had the money I would buy as many 1926 #9 Maduros I could.

Not all super premiums boast the quality of the Padron Anniversary lines (if only the world was that perfect ), and I am not certain as to the '26 series being a super premium, or just a premium? The 40th and 80th would certainly be a super premium.

 

[NullSmurf]

So how is the research coming BBS? :whistling:

I can say without question that this 80th and the Cheiftain are better than any Grape Own or bottle of "Night Train" I have here. No question in my limited mind...... :laugh:

I'll certainly PAT you on the back for smoking that snooty assed cigar, Tom!

I'll smoke the 80th, but as for the money, I'll usually buy 10 $2.50 sticks than one rather than $25.