In order to justify higher prices, a B&M needs to offer an experience worth that extra cost, such as expert advice to help the customer--something you can't get (easily) when shopping online.
The only store within a reasonable distance for me has a small rack of pipe tobacco at high prices, but there's also a smoking lounge in the back: some day I'll drive down there, buy an overpriced tin, and spend the afternoon with the locals (the owners are some interesting guys).
On the other hand, the local vape shop with the dripping humidor, and pot pipes they try to sell as briar, will never see my face. They already make plenty from the local potheads.
But yeah, most of the time I'm going to shop online for my pipe tobacco: vastly larger selection, much lower prices.
I have to agree. If you want to run a B&M, for ANYTHING, and you need to command higher prices to cover additional overhead, taxes, payroll, etc., the reality is you have to offer something more than a cash register.
I mentioned in another post about a new Cigar and Pipe lounge in Woodland Park, CO. They have been open about 18 months. The owner, Jake, is at the shop most times it is open. He is a youger guy (in terms of smokers, I think), maybe late 30s or early 40s. But he is very knowledgeable.
Their niche is really their lounge setup. It is a small place, maybe 1100 square feet, two story. The downstairs has their humidor, which they are trying hard to build up, along with a "bar" and TV for watching various sporting events and movies. They cannot "sell" liquor, as they don't have a license, but they can allow you to leave a bottle of your own behind the bar, which they can serve to you. It is a very cool set up. Downstairs is the "Rowdy Area". Upstairs, is the "Quiet Area" where you sit and chat quietly, maybe play a game of chess or cards while you smoke.
They also provide 2 colors of ash trays, black and red. If you are using a black ashtray, then you are telling the room you are open for random conversation. If you are using a red ashtray, you are telling the room you would prefer to be left alone to enjoy your smoke.
The establishment does not allow any cigarettes or weed. It is also a "members only" club, and you have to sit for a "trial" before you can join. The trialnis free, and basically consists of you coming in and sitting with group of guys for an hour or two, smoking and maybe having a drink, and making conversation. Once you prove you are not a general moron (or at least not a general A-hole), then you have passed your trial and you are allowed to select your level of membership. $50 t mos gets you unlimited access to the club and a spot behind the bar for a bottle or two, as well as 15% off anything in the humidor (which seemed reasonably priced to me). You can also bring a "guest" but they have to spend at least $15 in the humidor each visit. I have the $75 / mos plan, which gives me all of that, plus a permanent guest pass for up to 3 quests, with no purchase requirement and "priority seating" for your guests (due to the size of the space, the have a fairly low occupancy limit).
Anyway, I loved the concept, so I joined. A couple of weeks ago, after going into town for Holiday shopping with my Wife and Step Daughter, the girls wanted to keep shopping and I didn't. So I just ran over to the T&B and had a couple of smokes and a glass of my bourbon while they shopped. While I was there, I met a guy who offered me a pour from his bottle, an 18 yo Scotch. Which I graciously accepted.
In my mind, this is the type of B&M experience that is worth supporting over online prices.