Mr. Ben Dover's tobacco shop

[daimyo]

There has been a rash of "smoke shops" opening here lately, you know the kind. Focused on ecigs, cartons and of course, marijuana paraphernalia. I tend to stay out of these places except to buy matches and pipe cleaners. So today I stopped into the newest one that has opened and to my surprise they had a bunch of Dunhill tins. I was quite excited to possibly be able to buy a tin of tobacco in my town, as it's not something I usually get to do. Then I saw the prices... Deluxe Navy Rolls 50g - $33, Dunhill Flake 50g - $25. That's when I stopped looking. I told the clerk on the way out that it was unfortunate that the shop was owned by Ben Dover. Back to the good ole internet. :|

 

[tuold]

How can they justify those kinds of prices? Seems like they don't even want to sell it.
Reminds me of a story. When I worked in a retail pharmacy years ago, I typed up a prescription label with the name Ben Dover, slapped it on a bottle of cough syrup and sent it down the line for the technician to call out over the PA into the waiting area. Me and another guy slipped into the back area while she called out the infamous name...several times. The tech came back there red, and puffed up with murder in her eyes. She threw the bottle down on the floor shattering it and splattering us with cough syrup and broken glass. We didn't try that one again.Our name choices were a little more esoteric after that.

 

[daimyo]

:lol: That is a good one
I even told the clerk that I don't mind paying a little more to shop in town but their markup was ridiculous. I showed him that SP even has them for 13 a tin right now. Hopefully he passes my displeasure and the price disparity along to his boss, but I'm not holding my breath.

 

[mso489]

'Be interesting to watch the shop and see what happens, to prices, to the inventory and the nature of it, and

to see who is patronizing it, if anyone. So many people all but live online these days, it's hard to imagine that

they will get many suckers, I mean customers, especially any return trade. I'm happy to pay a little extra at

my local shops, especially my independent. It's nice to pay and walk out with a blend or a pipe I have actually

handled. But the shop has to meet me halfway and not soak me for the privilege.

 

[peckinpahhombre]

daimyo - forgive me if I am wrong, but I believe you are in Alaska, correct? if so, Alaska has a 75% tobacco tax.
Take Dunhill Flake. SPs margins I have heard are razor thin - they make up for it in volume.
Let's say that SP has to pay $9 for a tin of Dunhill Flake. I am sure that as a large buyer they would command significant discounts. Lets assume the store to which you refer has to pay $12 a tin wholesale. To that they have to add the state tobacco tax - so add another $9. Now they are at $21. How about shipping? I assume it costs more to transport goods up there? Add a buck, say? So if they sell that tin for $22 they break even? Is $25 all that outrageous?

 

[daimyo]

Peck, I'm not sure but that was the price on the tin. In the liquor stores they add the tax at the register. Maybe it's different with tobacco (I don't smoke cigs)? I haven't bought pipe tobacco here in the last decade and only a few cigars. When I bought the cigars it was with alcohol and I never went back to look at the out the door price. I suppose they could be getting overcharged by their distro as well. Regardless though, if I can get two tins online for the same price, I will have to pass. I think what shocked me is that for the rest of the merchandise, prices were where you would expect them to be.

 

[peckinpahhombre]

Oh, I don't blame you for passing - I would have done precisely the same. I am just pointing out that the price probably includes the tobacco tax which they have to charge and SP doesn't, so the retailer may not be to blame. I would be surprised if the tax was added at the till since it is based on wholesale cost (and no retailer wants to tell a customer what their wholesale cost is). Can you imagine if there is monstrous 75% added at the till on top of those prices? You would be paying way more than we do in Ontario, which is outrageous enough.
Just think though - if the internet commerce bill passes you will be paying much more because SP will have to charge and collect the Alaskan tobacco tax

 

[daimyo]

That makes sense, if I make my way back there for pipe cleaners I will query them. I know when buying liquor you have tax added at the register. It's very noticeably because we do not have any sales tax. I am not sure though if all the taxes are added then or just part. I suppose I should be thankful I don't have to think about taxes on goods much.

 

[claypipesarchaeologist]

Let us know how it turns out. I'm curious, myself.

 

[eightywon]

I would check out the 19th episode of the podcast.

 

[latbomber]

Before I discovered e-tailers $25 would have seemed like a great price coming from Vancouver (imagine paying $45 for a 2oz tin of peterson)
But yeah, good decision to pass. No need to rip yourself off!

 

[salmonfisher]

I think those prices are fair...after all, he will be cellering those for years til current prices rises to meet his lol

 

[kola]

I love "trying" to support my local B&M ( which is a short 1 1/2 drive by RT (aka Redneck Transportation as in a old beat up Ford Ranger) but last time I went there a 2 oz tin was 16 bucks..same blend online sells for $10.50. Sorry amigios, no can do.
I was surprised to see their paper matches were still free.

 

[cosmicfolklore]

+1 Peck,

What most people don't realize is that SP IS the distributor that these guys have to use for some brands, especially C&D and GLP blends. Every B&M has to go through them. Dunhill can be picked up at other wholesalers, but not for much less. Showing them SP prices is just showing them what they already know.

 

[Strike Anywhere]

@cosmicfolklore
You are correct and incorrect. Laudisi Enterprises is the parent company of:

A) Laudisi Distribution

B) SmokingPipes.com

C) Cornell & Diehl

D) LowCountry Pipe & Cigar
Cornell & Diehl tobaccos are distributed exclusively through Laudisi Distribution, but SmokingPipes.com and LowCountry Pipe & Cigar must "purchase" C&D tobaccos through Laudisi Distribution just as any other tobacco shop. A, B, C, & D are all separate, legal entities. SmokingPipes.com is a retailer/e-tailer like LowCountry Pipe and Cigar (or any other tobacco shop) -- SmokingPipes.com does not distribute C&D tobaccos, Savinelli pipes or anything else...distribution is handled through Laudisi Distribution (A), a separate entity.
http://corporate.laudisi.com/company-history.html

 

[cosmicfolklore]

This isn't what my local tobacconists tells me. According to two retailers here, they are no longer carrying C&D and GLP and Savinelli because Smokingpipes.com are treating them like crap.

They may both be telling me something wrong, but it would be odd that two competitors that don't like each other would be trying to misinform me. But, hey whatever.

 

[daimyo]

I am certainly not begrudging anyone their markup, I know how hard it is to survive as a B&M in these days. This sadly isn't really a piping store regardless. The 8 or so cans of Dunhill along with a few 4th Gen and Ashton tins, plus a card of MM cobs was the extent of the selection. We don't have any stores that cater to cigars or pipes since our local pipe store shut down a decade ago. I will make my way in to ask, hopefully someone in the know will be there. The cigars were all where I expect them to be, in the $7-13 range so the tins did shock me. I will be slower to judge next time though, till I have all the info.

 

[dochudson]

I'll willing to bet your local store even at the higher price is not making as much profit per tin as SP.

 

[daimyo]

Sorry for the delayed bump but I was back in this shop and the manager was there this time. I asked and the price on the tins was indeed the "out the door" price and it is indeed taxes making the tins unreasonable. It's no wonder the store actually dedicated to pipe smokers closed down. It makes me sad to know that even if a tobacconist wanted to open up shop here, even though I'm sure no one plans to, that they would be unlikely to stay open. It also does not surprise me that the ones that are here cater to carton buyer of cigarettes and weed smokers, it's likely much more profitable. Thanks for the info Peck and the rest of you that chimed in about taxes, shopping on the net had my head in the clouds. I might even go buy a tin once in a great while just because.

 

[derrickyoung]

It is sad what the taxation is doing to small business. The government does not seem to realize that there is a breaking point with there "Sin Taxes". That breaking point is not people quitting it is just finding alternate ways to shop. Many Cigarette smokers where I am make monthly trips to the local tribal reserve and buy cartons of cigarettes for 15.00-20.00 a carton now rather than pay the 75.00 or whatever it is in stores. Smaller variety stores are also carrying these cartons from the reserve under the counter for people they know or regulars.

I am not advocating circumventing taxes in any way but the government has to start to realize that over taxation always starts a chain reaction that hurts the consumer, the business and ultimately the government.