Jeremy Weiner
Smoker Friendly
"We carry prepriced cigars from all the major manufacturers in order to be competitive in the domestic-cigar marketplace. The prepriced products have defınitely grown our domestic-cigar business; unfortunately, it has hurt our profıt margins in this category.”
“I think [manufacturers] need to look at all the flavor products that have come out in the past few years and do some SKU rationalization. There are way too many flavor options and it’s hard to carry the entire line.”
Stephanie Lorance
Cumberland Gulf Group
"Currently we have 67 stores impacted by single-cigar legislation. In most of these towns, the town requires a minimum single cigar price of $2.50. This makes selling prepriced cigars in these locations not within the regulations local boards of health have set.
“It is hard to say that prepriced cigars have hurt our business, but it is certainly hard to compete when neighboring cities or towns may be selling a single cigar for 69 cents.”
Frank White
White Knight Marketing
"[I’ve felt] forced to carry prepriced cigars in order to price-compete with independent operators and smoke shops. The proliferation of minor brands that commoditize cigars by lowballing the price or quantity for price point threatens the gross-profıt margin of the cigar category.”
“Prepricing is defınitely a defıcit. It sells down the customer to the lowest price point, which steals gross-profıt dollars from the operator.”
Steve Monaco
Tedeschi Food Shops
"I have never been a proponent due to the margin squeeze. But because the market we operate in is flooded with this product from major manufacturers, we need to stay competitive and offer prepriced cigars.
“On the plus side, the product turns at a much faster rate, so we are seeing repeat business. The goal is to try and sell additional items to improve the basket size and overall margin.”
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