Why Is Capstan So Much More Expensive Than Orlik?

[olkofri]

The reason anything is more expensive is because people will buy it at that price. I bet if no one paid the price, it would be less expensive. Quality or better than.... makes no difference when it comes to pricing anything. Including Capstan.

Not sure, mate. I know of merchants who'd rather let the produce rot and then throw it away than to lower its price a few cents to clear.

 

[pantsBoots]

Never been a virginia man, and through my numerous attempts at smoking Orlik GS, I once had a brief moment of my tongue not burning and getting an incredible taste that I've never forgotten. I'm interested in trying it again, and when looking on 4noggins I saw that Orlik is $9 and Capstan is over $15. Whats the deal here? Aren't they similar?

Because Orlik is much better!

 

[timelord]

The situation with prices more driven by tax is the same here in Australia.

A 50g pouch of Captain Black costs the same as 50g of Full Virginia Plug, about $100 Australian (USD$73). The tobacco excise has just gone up by another 30%, driving the price up further again.

Now I remember why I moved to South America

 

[BROBS]

Now I remember why I moved to South America

All the free AIDS?

 

[hawky454]

All the free AIDS?

You know what they say about AIDS, you gotta be HIV positive!

 

[DAR]

Not sure, mate. I know of merchants who'd rather let the produce rot and then throw it away than to lower its price a few cents to clear.

I'm sure there are dumb merchants that don't know how how to do business but generally speaking, if it's priced too high most business savvy merchants adjust to make people plop down the cash. Tobacco is a strange and different market and maybe there is a good reason that Capstan has to stay at a relatively high price.

 

[tobefrank]

I'm sure there are dumb merchants that don't know how how to do business but generally speaking, if it's priced too high most business savvy merchants adjust to make people plop down the cash. Tobacco is a strange and different market and maybe there is a good reason that Capstan has to stay at a relatively high price.

There is also premium pricing, where the price is higher to suggest higher quality. This may explain destroying or not selling products at a lower price.

Companies that charge an intentionally high price are often seeking to emphasise the high quality and high class of the products they sell. Sometimes prestige pricing is more commonly known as premium pricing or brand exclusivity pricing.

The psychology behind premium pricing strategies is that the high price reflects high quality of the item being sold. Customers perceive expensive items to signal the quality of the product. Of course, the item may actually be very low cost to create – it’s all about perception.