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craig61a

Lifer
Apr 29, 2017
5,823
48,329
Minnesota USA
Last time I bought 4 oz. in local pipe shop, it came to just under $30.

The shop isn’t getting rich off tobacco sales. If anything it’s probably a break even proposition. When you figure in overhead (cost of utilities, payroll, insurance, etc. etc) and then city, county, state comes in and takes a bite in taxes, who’s really the one getting raped...?

Here in Minnesota the state taxes tobacco with 90% excise tax, and whatever additional taxes the state, county or city decides. Then people who happen to be passing through go online and complain, “Oh, it was a great shop, atmosphere, they were really helpful, but the prices for cigars, tobacco were a lot higher than what I would’ve had to pay back home... I won’t be back...”

Most online vendors don’t have a physical store front. And up until recently didn’t have to add sales tax for out of state purchases. And they don’t add the excise tax that you are responsible for...
 
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kg.legat0

Lifer
Sep 6, 2019
1,028
10,408
Southwestern PA
It doesn't help that they have to charge 50 cents or more per ounce as PA is totally insane with taxes. As far as their tobacco; it's a premium price, but they run a top notch B&M with world-class customer service, high end product, etc. -their lounge is also free and really nice, it's like a tobacco museum up there.
 

pappymac

Lifer
Feb 26, 2015
3,305
4,362
What I am going to say applies to small local retailers across the board.
I've worked in retail advertising for grocery stores for over 20 years. One of the things I learned early on is that small independent retailers have higher prices because they have to pay higher wholesale prices then big retailers who buy in bulk and get a discount.

A grocery example is canned vegetables. Walmart, as a national company, goes to Del Monte and says, "We want to purchase one million cases of green beans and will pay you 40 cents a can." Del Monte says, "It's a deal." Walmart then sells Del Monte Green Beans for 79 cents per can.

A regional food distributor (the company which supplies local, hometown grocery chains and independents.) goes to Del Monte and says, "We want 10 thousand cases of green beans. How much will it cost?" Del monte says, "60 cents a can." The distributor then sells the green beans to the local grocery store for 75 cents per can. The local store then sells Del Monte Green Beans for $1.12 per can, but because of overhead costs only makes a profit of .05 cents a can.

Now consider the fact that the big online retailers (I'm not going to name them but we all order from them) operate on the same premise as Walmart. They go to the major tobacco companies and make a deal to order the majority of a production run and get a discount. That allows the online retailer to sell to its customers at a low price and make a profit. In the meantime, the local B&M has to go to a local distributor and are basically paying the same per tin price as a consumer at the on-line retailer. (They are paying the same $10.41 per tin as you are.) To make a profit, they have to add in overhead costs.

In other words, like what has been said before, the reason B&M has higher prices is so they can stay in business and make a profit.
 

Pit&Pipes

Can't Leave
Sep 29, 2020
352
2,648
OH-IO
I Just place an order last night and I’ve shopped at their shop a lot over the last decade. Their tobacco is great and pipes are good quality when you can get one. Also, they are nice people. I don’t think their prices are outrageous and I’d pay for the customer service and keeping a quality shop in business.
 
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