Rafael Gonzala Corona Extra - URL MAR 01


asmith

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No HSA....I won't do a Monte Open Promo with caps/ashtray or lighter :D

Rob, you have enough trouble giving away your own FoH Caps LOL!

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good to see you guys with a top single malt for this review. hope to see more of this in future reviews at the new place.

ie not just reviewing the cigar but matching with a whisky,bourbon,port,champagne etc

cheers

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  • 1 month later...

Pigster you have to think outside of internet sales and take the majority of countries in the Key markets (Europe/Asia etc).

Add distribution freight +$400(+) a kilo in Duties + VAT/GST of 10-17% (on all input costs). Distributor margin of 30% (on top), Retailer 50% (after paying VAT/GST again on distributor purchase).

That stick of RGCE may arrive to the distributor from HSA at $3-00. By the time it is on the retailer shelves it is $19.50 - $25. in most countries. In some places more.

Let's say HSA gave them away for a $1 to the distributors. The end price remarkably doesn't change a whole lot.

On the net the price ranges anywhere from say $7 - $11

Again, take out the purchase, distribution and pricing costs in a no tax environment and the margins are pretty skinny. It is a connundrum. The B&M's have been the foundation of relationship building in the cigar world. The Net retailers destroy them on price. They B&M slowly die and one of the great links to developing a love of cigars (such as RGCE) disappears as well.

In FOH our vision has always been to meld the best of traditional B&M with the best of what the internet has to offer. It is a hoot to do the vid reviews because we are continually learning and having our own opinions (sometimes entrenched) challenged. I agree there should be more of it (around the world) in order to illuminate some of these great cigars that are stuggling.

I don't begrudge HSA with their pricing. Their distributor pricing is generally fair on general cigars. However retailers globally could certainly use a more (some) co-ordinated

marketing/promotional support. Wouldn't it be great if we could send out 1000 RGCE caps with the next 1000 boxes of cigars...or a RGCE ashtray...or Lighter.

No HSA....I won't do a Monte Open Promo with caps/ashtray or lighter :D

Always able to learn new things and realities of the tobacco business. Thanks for the great review.

PS I wish I had that accent!

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