News: Alec Bradley to Increase Prices April 1
Alec Bradley has begun informing retailers that its prices will Increase April 1. In a move described as “essentially across the board,” Alec Bradley will raise prices on most of its SKUs with the exception of the newly-launched Alec Bradley Connecticut and the soon-to-be-released Alec Bradley Nica Puro.
Sam Phillips, vp of marketing, told halfwheel the move comes as the company faces increased costs from its producers.
Maybe my wife will read this and finally understand all the cigars i've been buying are a hedge against inflation.
Bottomline, inflation affects every aspect of every market in the world, and sadly there isn't a damn thing anyone can do about it... Agree with @DavidHolmes1 on this, at the end of the day the local B+M gets the facetime with the end customer that the online retailers don't, Online might get more complaints, but it's VIA email (or over the phone), face to face interactions have the "double edge sword" of being great when the feedback is positive and not so much when it's negative. But again, folks always bitch about change when it either has zero effect on them or a negative effect.
@MatthewJohnZeigler @DavidHolmes1 Not sure this is actually the case. I would imagine few consumers, because of buying habits on the extremes, actually notice these minimal increases. The people that do our retailers, reps and the rare customer that buys the same thing over and over again.
The amount of choice most consumers have, whether it be online or down the road, means that things just aren't as finite..
Consumers do notice multiple changes over time, like say Oliva's annual changes, but in terms of specific jumps, I'm just not convinced. Particularly given that it might be months before the consumer will see these changes because of inventory.
At the end of the day if people want something they will buy it. People (including me) will bitch about it for a few then forget about it in a few months, just like we do with gas, and everything else. Then next year prices will go up again and the cycle will repeat. Nobody likes paying more money for things then they have to. One of the great things about cigars is that people smoke them because they want to, not because they have to. I just feel sorry for the shop owners who really catch all the shit over this.
@DavidHolmes1 But by that same token, I doubt many shops (or manufacturers) are keeping the hard margins the same. Given how cigar pricing is generally done from the wholesale to retail level, the reality is that a price increase means the retailers will make a little more on each cigar they sale. (They might lose some given the decreased sales, but I doubt very many B&Ms do this forecasting like say, manufacturers will do.)
So how is la palina dropping prices?
@DavidHolmes1 La Palina started at a very high price point so they have room to move. A cynical person would say that their sales are off and they are lowering prices to increase sales no matter what explanation they give. If Alec Bradley cigars were $12 each, they could lower prices too.
@maxx @DavidHolmes1 Once again, La Palina only dropped it on two lines. Their two most expensive lines weren't affected.
@DavidHolmes1 A few things about that:
The simple fact of it is, as @SteveSaka mentions, a lot of manufacturing costs are going up all over Latin America. There are only a few people (Pete Johnson) that are willing to eat these costs again and again. Most companies, like business in general, are going to pass them along.
Well, at least the Nica Puro isn' going up, maybe those will finally start coming in, boo to price increases.
I think you will see increases in 2013 by almost everyone. Tobacco and energy costs just continue to escalate in Central America, South America and the Caribbean basin. The energy costs of course impact everything from fertilizer, shipping to local food costs, which in turn impacts labor costs.
A few companies might hold out, but they are imo just delaying the inevitable and will ultimately be forced to have much larger price increases next year. :/
Fwiw, cigar companies would rather costs remain the same so their prices could remain the same, nobody likes to raise prices as you always worry if it will impact sales and by how much. I know at the manufacturer level a slow down in volume can have a dramatic increase in the cost to produce which can make the problem even worse...
@SteveSaka it won't stop me from buying liga for sure just may not some other brand just so much you can spend but as long as theres liga ill be buying i would rather smoke one amazing cigar a day the 3 muh a day just but who am kidding id be lost with out a cigar in my hand a liga that is lol good input mr saka
@RobertShkreli @SteveSaka BROWN NOSE
@maxx @RobertShkreli @SteveSaka is that nice i could say a few things my self but ill be the bigger man
@SteveSaka I'm with you. As I mentioned earlier, I think we will see more and more do the raise around IPCPR rather than at the beginning of the year like had been the case last year.
No really. Thats my sarcastic voice if you cant tell.