Cigar Shop/Lounges Question

edelrionyc

Do you guys think that our local B&M are purchasing their cigars from a distributor or more likely from a middle man of some sorts? What do you think is the differance between getting it from the distributor instead of a middle man?

zeebra

All depends on how much volume they do. If they dont sell enough, they HAVE to purchase through middle man. If they are a large volume dealer, they can get it straight from the manufacturer. Now there are some manufacturers that will only sell their brand to certain shops, like Opus X, or Davidoffs which have control over pricing and discounts.

Sandman1am

This is going to be different from state to state because of the laws. Here in Mich. the store has to have a purchase permit in order to buy directly from out of state sources. If they don't then they have to go through a local warehouse or different retailer who has the permit. Has to do with the taxing of the product here.

docbp87

A lot of companies do their sales to B&Ms through a rep...

edelrionyc

Would a cigar lounge in NYC be able to purchase their cigars from CCOM and sell them in NYC or would a lounge have to deal with a distributor located in NYC? When does the tobacco tax come into play? At the point of purchase of the cigar or the point of sale of the cigar in NYC.

docbp87

edelrionyc:

Would a cigar lounge in NYC be able to purchase their cigars from CCOM and sell them in NYC or would a lounge have to deal with a distributor located in NYC? When does the tobacco tax come into play? At the point of purchase of the cigar or the point of sale of the cigar in NYC.

For a lounge to buy their cigars from CCom would be awful for their business... wayyyy too expensive for a retailer. The cost that they would pay from a wholesaler or actual distribution source would be far less than retail from... anyone. Basic retail.

lilwing88

As far as I know, it's against federal/state law here in IL to purchase from a catalog site and sell through a B&M. You have to get your inventory from a licensed rep or wholesaler. It's a tax issue. Cuz your paying your tobacco taxes up front. I'm assuming most states are the same.

Dealing with different cigar companies requires different things. Some brands fall under a parent company, like Altadis (RyJ, Montecristo, H. Upmann, Trinidad...) and they require you to carry a minimum number of facings in your shop. Padron used to require a minimum purchase order, but since the economy started to tank, a lot of companies have relaxed on their requirements.

edelrionyc

How do i find a cigar distributor in NYC? Does anyone know of any?