Bulk Tobacco Price Increase of 25% in Less Than 60 Days -- Why?

[kairos]

I have been a member of this forum for nearly seven months; and even though I have not posted very often, I do check-in at least once every day to follow the current threads. Today is really the first day that I have been moved to post some information that I find troubling.
I went to P&C online today to place an order, and I discovered that prices for some of my go-to McClelland bulk tobaccos have increased nearly 25% since I placed my most recent order in May. I recognize that P&C had a 10% discount on my McClelland orders in May; but even after accounting for the 10% discount, the same tobacco order has increased from $121.12 in May (i.e., $133.23 after 10% is re-applied) to a whopping $166.40 today (2 July 2014). That is an increase of 24.89% in less than two months.
My question is "Why"? Is this being driven by the fear of the new FDA regulations?
For those who may be interested in the specifics, here is a breakdown of the orders (showing May prices WITH an adjustment for the 10% May discount applied):
McClelland #2020 -- 8oz -- $22.53 on 09 May -- $28.16 on 02 July

McClelland #2045 -- 8oz -- $22.53 on 09 May -- $28.16 on 02 July

McClelland #2050 -- 8oz -- $22.53 on 09 May -- $28.16 on 02 July

McClelland #5105 -- 8oz -- $22.53 on 09 May -- $28.16 on 02 July

McClelland #5110 -- 16oz -- $43.12 on 09 May -- $53.76 on 02 July
Total -- 48oz -- $133.24 on 09 May -- $166.40 on 02 July
I am a loyal customer of P&C. I have been very pleased with their services. But what can possibly account for a 25% increase in the price of bulk tobacco in less than 60 days?

 

[numbersix]

Thanks for the post kairos - I have not kept a close eye on price increases but this is troubling.

 

[conlejm]

I just checked a few of the bulk purchases that I've made over the past few months and - after accounting for the discounts that I benefitted from - all seem to be stable. Checked Mac Baren, Peter Stokkebye, Dunhill, Cornell and Diehl; no dramatic change in price. I generally buy in 5lb increments, fwiw.
Maybe this is specific to McClelland.

 

[goldsm]

Wow...

I got to wait until they do 25 % off sale in bulk tobacco.

I know they do great sale sometime every year.

 

[voorhees]

Might be McClellands. I don't see a increase in the bulk I buy either.

 

[kairos]

I believe you may be correct, conlejm ... The 25% increase does seem to be associated specifically with McClelland bulk tobacco. I consulted some bulk pricing for a few Lane Limited and Peter Stokkebye blends that I purchased from P&C during April, and there have been no price increases for those blends since I placed my order in April.
So, yes, the 25% price increase appears to be specifically associated with McClelland bulk tobacco from P&C.
Interestingly, less than 15-minutes after releasing my original post for this thread, I received a PM from one of P&C's online competitors (who is also a sponsor of PipesMagazine.com) which included the following text: "There have not been any price increases from McClelland." So, at least one of P&C's competitors is claiming that McClelland has not raised their prices on bulk tobacco during the past two months. I am confident that P&C must have a very good reason for implementing the price increase; and perhaps someone from P&C will comment on this thread.
Bottom line: I am not trying to "stir the pot" on this issue. However, I am using this forum to express my surprise and disappointment that my favorite McClelland bulk blends have incurred a 25% price increase in less than two months. That is a hard pill to swallow during these times of "cellar building" by those of us who are very concerned about the future of pipe tobacco availability and pricing in the U.S.

 

[puffy]

I won't comment on the why,but I will offer the following..There once was a time not all that many years ago that I bought McClelland 2045 in 5 pound bags.The last bag I bought I paid $96 for.Now that same bag is around $240..With price increases like this I don't see a lot of young folks thinking that they can afford to get into pipe smoking.It doesn't seem to bode well for the future of what we do..Just so it doesn't look like I'm singling out one company.I used to buy a can of Captain Black for under $13.Now it's well over double that.Maybe some folka are just trying to grab what they can while they can.

 

[murf]

There was another thread a few months ago about P&C doubling their prices on Esoterica, while other vendors kept their prices of Esoterica the same. No one could account for the price increase. I'm not sure if it's still the same. I have only bought one 8oz bag of Esoterica Scarborough and haven't gotten around to smoking any of it yet. It's jarred up and aging for now. I don't plan on buying anymore Esoterica blends in the future, due to lack of availability. Sorry for the tangent.
So, I guess what I'm pointing out, is this isn't the first time something like this has happened.
Might be a marketing technique. Drive up the price of a product so when it's "on sale," it's really not.
I just ordered a good amount of McClelland bulk. I think it was during the sale. I hope it wasn't at these new prices. Didn't crunch any numbers, but seemed like a good deal of tobacco for the money I spent
EDIT: I spent $94.78 on 36oz bulk McClelland tobacco end of May. Only 1oz of it was non-flake. That comes out to $2.63/oz

 

[mso489]

Does anyone have any "inside" information on why McClelland might be doing this? They have always been

a fine, medium priced tobacco, with a good selection, and some real stars among the blends. I hope they

are not a trend setter in this. It really changes the pipe smoking interest if it goes the way of cigars, up.

 

[derfargin]

Call me cynical, but isn't that what prices do? Increase? Be it, over the course of a year, or over 2 months. Do you look back at what you paid for food, tires, or tobacco 2 years ago, and say.."You know, I was paying way more then than what I'm currently paying now." No, it's always the other way around.
Now, if this is something specific across the board with tobacco, I dont know. Perhaps it's for a specific "etailer", or if it's with a tobacco company, I'm sure they have their reasons for price hike. If you're unhappy about it, purchase elsewhere, or a different product, or both. You do have options.
What I have heard countless times before on these forums...Tobacco in general isn't going to be any less expensive than it is right now.

 

[woodsroad]

kairos, this mat be a radical idea, but the correct thing to do here is to call P&C and see what they have to say. You could also PM Russ O., their esteemed blender, chef and bottle washer and bounce the question off of him. Then you can post here with the quandary and the conclusion.
Otherwise, you are just asking people to guess, which they will gladly do, but it won't help answer your question.

 

[decigar]

Wow that's actually a good suggestion Dan. Huh, who knew u had those =)

 

[kola]

interesting times......and no end in sight.

 

[woodsroad]

Wow that's actually a good suggestion Dan. Huh, who knew u had those =)

Thank you, Andrew.

My work here is done. I will now put my earplugs back in and retreat to my earthen hovel.

 

[fadingdaylight]

The one where you keep your meth addict girlfriend? Lol