P&C Doubles Prices on Esoterica Bags

[woodsroad]

Open ended question for those who are perturbed by Esoterica price increases:
Differentiate between "gouging", "profiteering", and legitimate "supply and demand" price increases

 

[JimInks]

I talked to one retailer this morning and they said there was no price increase on Esoterica blends, and they are not raising their prices. I say buy elsewhere while you can.

 

[peckinpahhombre]

Differentiate between "gouging", "profiteering", and legitimate "supply and demand" price increases

The economist in me says there is no real difference. Demand clearly outstrips supply, and with anything of that ilk, that will lead to price increases, either through retail channels or through speculators. What pisses me off is that the speculators are making most of the profit. Esoterica should be making most of it, since they are making the product that all of us covet. I don't want to revisit the discussion we had in my infamous Stonehaven thread, which led to all sorts of bitterness and acrimony, but I do believe that a rise in price at the esoterica level would reduce demand and drive some of the speculators out of the market, and we would all be better off for it in the long run. Just my opinion, and one that is not universally shared by others.

 

[woodsroad]

Esoterica should be making most of it, since they are making the product that all of us covet.

I agree.

Unless they can economically expand production to meet demand, then Esoterica is foolish to not raise prices to meet demand.
I'm an independent contractor. If an agent is getting me work at a higher rate than I normally ask, and takes a reasonable commission on that higher rate, then I'm a happy camper. But if someone is subbing me out at twice my going rate, and I'm not seeing more money, then I'm being pimped and I'm an idiot.

 

[cortezattic]

This must be one of the exciting changes that Russ promised in the wake of the Habana buyout by Cigars Int'l. :lol:

 

[mrjerke]

If Jim spoke with another retailer and it's not coming from Esoterica then this is clearly P&C trying to make a buck. I have a retailer getting in Dunbar and Margate today and I will be able to confirm with them.
In any event, there seems to be more to the story than what I was told.
I agree 100% that Esoterica blends should cost more, they are fantastic. But who's really benefiting from this price increase?

 

[mrjerke]

Received a response on my email. Sounds like this was a decision by P&C, not by Esoterica. Here is part of their response.
"As you are certainly aware, Esoterica tobacco is extremely difficult to obtain. The perpetual shortage of Esoterica product has been forcing an increase in our cost for some time and we could no longer maintain the old price. The new $49.95 price was chosen to cover our increased costs and allow us a reasonable return on our investment in time, effort, and money used to acquire it."
There you have it.

 

[onepyrotec]

I do believe that a rise in price at the esoterica level would reduce demand and drive some of the speculators out of the market, and we would all be better off for it in the long run. Just my opinion, and one that is not universally shared by others.

You are not alone in your thoughts Peck. There has been enough dirtbags taking all the $25 bags from internet retailers with no intention of anything else besides selling it for $100. Raising the price to $50 a bag may just leave some for the guy who really wants to smoke it and he won't have to pay $100 for a bag anymore. Besides, does anyone really think Esoterica blends should be priced LOWER than Drew Estates MSRP?
http://www.ebay.com/sch/Tobacciana-/593/i.html?_from=R40&_nkw=esoterica

 

[cosmicfolklore]

If everyone would stop buying it, prices would drop. But, because you're not going to stop buying it, prices will continue to rise. That's the law :wink:

 

[msandoval858]

Looks like Esoterica is offically the OpusX of the pipe tobacco world now. Anyone who is a cigar fan remembers the late 90's and trying to get your hands on anything Fuente brand. I remember chasing those cigars down, retailers gouging for rarity, etc. Just not worth the time and trouble. Been there done that.
I like their tobaccos but I don't like them that much. Plenty of other good stuff out there to smoke.

 

[JimInks]

I've now talked to two retailers. Both said there's no price increase on Esoterica blends.

 

[peckinpahhombre]

This must be one of the exciting changes that Russ promised in the wake of the Habana buyout by Cigars Int'l. :lol:

:rofl:

 

[dervis]

Good for them. Things are worth what people will pay for them no more no less. I would do the same thing. Now when it gets to the point no one buys from them, then you lower back to what they will pay.

 

[woodsroad]

Supplier cost is part, but not all of the cost of selling a product.
In an email that I received this morning, pipesandcigars.com tells me that their supplier has indeed raised the price of Esoterica, and "As you are certainly aware, Esoterica tobacco is extremely difficult to obtain. The perpetual shortage of Esoterica product has been forcing an increase in our cost for some time and we could no longer maintain the old price. The new $49.95 price was chosen to cover our increased costs and allow us a reasonable return on our investment in time, effort, and money used to acquire it."
All of which makes sense to me.
But I will not be buying Esoterica from them. It's just not worth that much to me.

 

[4noggins]

Dervis,
You sound like a brilliant guy.

 

[cigrmaster]

Now we get to see how CI really does business. Their jacking the price is a pure profit move on their part but they are very short sighted. Yes they will make a few more dollars on their Esoterica supply, but the bad will they are now going to get will cost them way more in lost business than they will ever make from the price increase.
It is interesting to see how poor management can ruin a company. The person who made this decision is probably sitting in his office thinking how damn smart he is and in reality, he is going to cost the company big time. This story is going to go viral at every pipe site on the web, how many customers are going to be lost?

 

[cigrmaster]

woodsroad, jiminks has confirmed that Esoterica has not raised prices so in reality PC's costs have not risen. They have not changed their website and how people order so how have their costs increased? I would like to hear from them what costs they are incurring because of how difficult it is to obtain these blends. That statement you are quoting sounds very dubious. How does a constant shortage increase costs when all they do is list it as back ordered?

 

[cortezattic]

Harris +1. They just shot themselves in the foot. No more business from me.

There are still plenty of high profile vendors out there, and enough good blends to make up for losing the H&H line

 

[flmason]

P&C has lost my business also. I called them a few days back to order a pipe. The representative was not able to answer my question. I asked them if they could go look at the pipe to get a shape number and any information that might be in the box since no information was available on the website. The person said they could not get the pipe either.
That is when I decided to order from another site sponsor discussed in earlier postings. All is excellent with my order from SPC.
P&C obviously does not wish to sell any pipes. This was my second and last time trying to buy from them. I will not go back again.

 

[werdna]

I don't care how good that tobacco is, and I love Dorchester, but I'll find a replacement before being price raped. I haven't yet ordered anything from P&C, and I don't see I will be in the future.