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Old 06-10-2011, 08:09 PM   #1
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Cigar pricing trending upward?

What's up with that? I understand, during the height of the boom...supply and demand.
But it seems demand is way less the pre-cigar boom, although there may be more smokers..than before.

But I'm seeing new cigars introduced that start at a SRP of $10/per cigar!

I just can't afford that on a regular basis. I like Padron cigars, like the Anniversary series...and the series 1926, but it's been years since I've had any, and those were in a sampler. They are extremely good, just not in my budget.

I don't have to smoke the finest cigar ever rolled, with the rarest tobaccos...to be happy. Just a nice smooth smoke, that is neither harsh and bitter, no too week. Balanced, medium type smoke.

My point being, I'm not jealous or upset there is a higher end market that I can't afford. I just don't want the entire lines to become high end.
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Old 06-11-2011, 04:52 AM   #2
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I've noticed the same thing, for sure. It's usually most evident when established manufacturers introduce new lines. One that really shocked me recently was in the La Herencia Cubana brand.

The LHC Oscuro Fuerte line is a fantastic value smoke, in my opinion. VERY dependable, VERY enjoyable cigar. The toros retail for $59.95/box of 20, and at that price point, I'll always have them on hand.

So I was interested to see the LHC Core line pop up a month or so ago, but instantly lost interest when I saw the price:$175/box of 20 for the toros. Now, that's still just shy of $10/cigar, but it's damn near triple the price. That's a very tough thing to swallow.

As to the "whys," maybe we can hear from someone in the business on that point. I have to believe they're responding to consumer trends (how else could they stay in business?), but given the current state of the economy, I don't really believe that.

I also don't believe it costs 3 times as much to make the new line as it does the existing line, yet you see prices consistently higher for new lines regardless of brand/manufacturer.

My response to this trend is pretty simple: I stick with my proven value smokes. Wrapping up with the same example, there is no way in hell I'm going to pop for a box of LHC Core toros when I can get 3 boxes of LHC Oscuro Fuerte toros for the same money.
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Old 06-11-2011, 05:27 AM   #3
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Knowing that there's an ample supply of poseurs who equate price and (supposed) exclusivity with quality, maybe the manufacturers are trying to see if they can get a new boom started?
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Old 06-11-2011, 05:55 AM   #4
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In the new Mike's catalog there is a notice on the CAO page that states" starting July 1,2011 the prices of all CAO cigars will go up substantially"
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Old 06-11-2011, 05:57 AM   #5
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Quote:
Originally Posted by KatDad View Post
Knowing that there's an ample supply of poseurs who equate price and (supposed) exclusivity with quality, maybe the manufacturers are trying to see if they can get a new boom started?
Bingo, that and kids buying 56+ ring cigars.
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Old 06-11-2011, 06:00 AM   #6
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It's like anything else, if people will pay the prices then the manufacturers will keep pricing their products high. If sales start to drop off the prices will come down.
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Old 06-11-2011, 06:02 AM   #7
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Knowing that there's an ample supply of poseurs who equate price and (supposed) exclusivity with quality, maybe the manufacturers are trying to see if they can get a new boom started?
Exactly what I was all set to type up myself.......
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Old 06-11-2011, 07:40 AM   #8
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Thyere is always an enormous amount of pressure on the consumer to spend more on the same product. In the past, it was fine to sell punch and hoyo, and the company lived well on those types of sales. There were always advanced quality brands among the line, and there were always lower price and quality lines.

Hoyo cost less than punch, and excalibur or grand cru cost more than punch. Punch has always sold several real bargain vitolas, and hoyo has sold bundles, and the factory/company always has made and sold millions of short filler cheap smokes, to create sales volume, and capitol flow.

Sales asre drying up. I don't thin that selling fumas is as big an asset anymore, maybe. But, in any case, the best way to pressure people into buying more expensive cigars, is to make them. If you toss a bale of pre embargo cuban tobacco into the room where punch roths are being sold, with instructions that this bale of tobacco 1/2/ gram at a time to the cigars, you will have created a new punch roth, with a significant increase in perceived value. It will be the punch "new and improved, with genuine pre-embargu cuban tobacco."
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Old 06-11-2011, 07:54 AM   #9
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I noticed cigar prices skyrocketing a little over a year ago. It seems like every cigar that now hits the market is in the $150 a box price range. Of course if people will pay that price why should the producers lower their prices? If the Joe Sixpack cigar smoker doesn't buy the expensive cigars then I think the prices will go down. Most of us can't afford the increased prices ( making us the Joe Sixpack guys). As Maddog said Find a value cigar you enjoy and stick to it. I haven't found to many newer cigars that are worth the extra money anyway.
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Old 06-11-2011, 10:36 AM   #10
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The bitter irony is that the conoisseur is the group that the new products will most genuinely appeal to the conoisseur and true afficianado, and be most appreciated by them, and ultimately, be kept alive by them. A good cigar, once it is passe' to the weenies that buy by the band, will still be wanted by the real smokers, but NOT at the gouging price!

More and more, I see that the things that Lew used to say, the difference between a $1 and $10 dollar cigar is $9 is common. Once you get a good roller, you get a good cigar. You can make a great cigar for $3, as proven by the punch roth. I can't believe that the tobacco in a $10 stick costs, or is worth, $200+ per pound above and beyond the price of tobacco in a punch.

yep, it pisses me off, because no matter what it is, it seems that I never see anything that I can afford to smoke on even a once a year basis come out. I just bought a single H upmann sungrown for almost $6, and half of me hopes it sucks, because I'll never spend that sort of money again.

But funny, I can always find bundles of crap on joe cigar for $3 apiece that is the best boutique cigar ever made.
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