Cost of making a cigar?

Thanatos0320

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

rsherman24

I couldn't even guess, but with the deals that can be found on cigars from retailers I would imagine the markup is substantial. Which should relate to the actual product being cheap. I am sure it depends on tobacco source, but other factors should be consistent.

Cigary

Cost is relative to the entire process of growing, harvesting, supplies and rollers as everything is kind of rolled into the overall cost. The better the tobacco the higher the pricing....remember that in order to make the first pharmacy medication that first pill is what costs the most....after that it's what the market will bear.

jlmarta

Amos Umwhat

and, of course, Unka Sugar's cut, I mean tax

rzaman

Are you sure you won't be disappointed when you know how much it truly cost?

Thanatos0320:

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

kuzi16

Thanatos0320

Ill be shocked that's for sure. I figured it costs less than a $1 but I can justify certain prices because of how great some cigars taste.

0patience

SleevePlz

Remember, however, that there are other costs outside of just making the cigar. How much gets spent in marketing? When you look at the price to make a My Father, are you including the cost to build the huge factory? What price do you put on aging tobacco for several years? What's the value in coming up with a truly great blend? So many more considerations than just the cost of tobacco and the rollers to make the cigars. Puffmaster recently created a new cigar brand (Swinger). I would be curious to hear his thoughts on the overall cost to bring it to market. I'd be willing to bet it is more than we think. Also, I'd be curious to see the correlation between the cost to make a cigar to the retail price of the cigar. For example, Company A has 2 cigars. One retails for $6 and the other $12. Does the second cigar cost twice as much to make? Are they actually really similar in cost, but one has fancier packaging?

kuzi16

charlespe

Well you need to think about all the work you need to do, such as the aging, blend testing, actual blending, rollers, inspectors and many more. I don't wanna think about the cost

Darktower007

This is probably spot on http://www.palomino-cigars.com/two-dollar-cigar.html#.U8e8c45Okuq

kuzi16

Darktower007:

This is probably spot on http://www.palomino-cigars.com/two-dollar-cigar.html#.U8e8c45Okuq

agreed. some brands are probably worse than others.

The3Stogies

I wonder why boxes are cheaper per stick than 5-packs wrapped in cello. Usually quite a bit cheaper. MOW box of 22 comes out to $4.60/stick, 5-packs come out to $5.60/stick. Buying 20 or so (the usual boxed amount) would be cheaper per stick than buying 5 makes sense, but what about the cost of the box itself?

brianetz1

The3Stogies:

I wonder why boxes are cheaper per stick than 5-packs wrapped in cello. Usually quite a bit cheaper. MOW box of 22 comes out to $4.60/stick, 5-packs come out to $5.60/stick. Buying 20 or so (the usual boxed amount) would be cheaper per stick than buying 5 makes sense, but what about the cost of the box itself?

the average customer expects to pay less when buying in bulk. hence why costco and sams exist. From a supply/demand standpoint why would you ever buy a box if you could buy 5 packs at the same price per cigar? I know i wouldn't every think of buying a box unless it is a shortrun if i could get the 5 pack at the same price.

The3Stogies

catfishbluezz

Thanatos0320:

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

30k for 10k cigars is a good average considering most expenses.

blutattoo

catfishbluezz:

Thanatos0320:

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

30k for 10k cigars is a good average considering most expenses.

33 cents a stick? Wow I'm in the wrong business.

SleevePlz

blutattoo:

catfishbluezz:

Thanatos0320:

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

30k for 10k cigars is a good average considering most expenses.

33 cents a stick? Wow I'm in the wrong business.

I think he meant the other way around. $30,000 to make 10,000 sticks, so $3/stick.

webmost

catfishbluezz

SleevePlz:

blutattoo:

catfishbluezz:

Thanatos0320:

I was thinking about what it costs to make a cigar. Does anyone know? I would like to know what the total expenses are just to see how they compare to the prices at which the cigars are being sold.

30k for 10k cigars is a good average considering most expenses.

33 cents a stick? Wow I'm in the wrong business.

I think he meant the other way around. $30,000 to make 10,000 sticks, so $3/stick.

Yes this, after all is said and done, is a good average give or take 5k depending on quality of tobacco and operating costs based on where you live in America. This would be for an average costing boutique 3rd party based on my experience. Then you have to factor profit before selling to stores, store markup, and taxes. The margin is not huge by any means...

catfishbluezz

webmost

Ken Light

catfishbluezz