Snipet of new prices on the island

[bbguardsp]

Hearing it's around a 30% increase across the board! 

[NSXCIGAR]

Yes, discussed in detail here:

Prices are in CUC. CUC is trading off market for 1.5-1.6: 1. This is actually a price decrease if cash is used.

[zigarrenziggy]

11 hours ago, NSXCIGAR said:

Prices are in CUC. CUC is trading off market for 1.5-1.6: 1. This is actually a price decrease if cash is used

This may be a foolish question, but having never been to Cuba, how would this work? I’m assuming that converting cash at state run conversion centers would return a 1:1 rate. Are there local shops/businesses that convert cash at the rates you’ve posted?

[Tstew75]

Hard to make any sense of these prices with the Cuc already plummeting 30% with the introduction of the dollar ....all cues indicate it's being phased out completely:

https://www.miamiherald.com/news/local/community/miami-dade/article237846459.html

[Nino]

3 hours ago, zigarrenziggy said:

This may be a foolish question, but having never been to Cuba, how would this work? I’m assuming that converting cash at state run conversion centers would return a 1:1 rate. Are there local shops/businesses that convert cash at the rates you’ve posted?

Not a foolish question and I understand it is "strange" for people that have never been to Cuba or understand the sytem there, no problem.

Correct - you go to a state run CADECA - exchange place - and you get a 1-1 exchange rate.

No -  but there are private persons, most likely your Casa Particular renter or others, that would love to give you the un-official rate for your greenbacks, there is a large market for that, just let it be known you want to have CUC's.

It doesn't involve risk, just some looking-around and you will get the rate you want, supply & demand works in Cuba quite well if you have contacts or speak the language and know how it works.

It is generally very safe - but if you are not comfortable doing that just don't.

[zigarrenziggy]

4 minutes ago, nino said:

Not a foolish question and I understand it is "strange" for people that have never been to Cuba or understand the sytem there, no problem.

Correct - you go to a state run CADECA - exchange place - and you get a 1-1 exchange rate.

No -  but there are private persons, most likely your Casa Particular renter or others, that would love to give you the un-official rate for your greenbacks, there is a large market for that, just let it be known you want to have CUC's.

It doesn't involve risk, just some looking-around and you will get the rate you want, supply & demand works in Cuba quite well if you have contacts or speak the language and know how it works.

It is generally very safe - but if you are not comfortable doing that just don't.

Good to know! That seems rather interesting, as clearly the CUC prices stated above at a 1:1 rate with USD do not seem worthwhile. However, with a 1.5:1 rate, they are much more reasonable. 

I guess this is all dependent on being able to bring them back to the states, though

[Nino]

2 minutes ago, zigarrenziggy said:

Good to know! That seems rather interesting, as clearly the CUC prices stated above at a 1:1 rate with USD do not seem worthwhile. However, with a 1.5:1 rate, they are much more reasonable. 

I guess this is all dependent on being able to bring them back to the states, though

Yes - happy to be of assistance.
Believe me, demand for US greenbucks or Euros is VERY high in Cuba right now.

Second problem is out of my hands, sorry ?

[NSXCIGAR]

4 hours ago, Tstew75 said:

Hard to make any sense of these prices with the Cuc already plummeting 30% with the introduction of the dollar

Makes perfect sense to me--when currency loses value, prices rise. Except "officially" the currency hasn't lost value. 

What they should have done is just left prices alone if they weren't going to alter the official 1:1 exchange rate. It wouldn't be so obvious that the CUC has lost 50% of its value and the state would have benefitted from tourists continuing to exchange at 1:1 officially and use bank cards. Instead, they get greedy and create a huge incentive for tourists to exchange off-market and use cash. The incentive was already there to begin with that obnoxious 10% fee but now you're crazy if you don't exchange cash off-market. 

[El Presidente]

Should inflation continue to get out of hand, this won't be the only price rise on a range of tourist targeted goods and services. 

They have themselves in one hell of a mess. 

[Tstew75]

20 hours ago, NSXCIGAR said:

Makes perfect sense to me--when currency loses value, prices rise. Except "officially" the currency hasn't lost value. 

What they should have done is just left prices alone if they weren't going to alter the official 1:1 exchange rate. It wouldn't be so obvious that the CUC has lost 50% of its value and the state would have benefitted from tourists continuing to exchange at 1:1 officially and use bank cards. Instead, they get greedy and create a huge incentive for tourists to exchange off-market and use cash. The incentive was already there to begin with that obnoxious 10% fee but now you're crazy if you don't exchange cash off-market. 

I understand its effect in Cuba, I was speaking more to general worldwide pricing. Folks in lots of cigar groups are exclaiming 'CCs are going up in price 30%+!'. It's not that clear cut, and in many cases online retailers have already taken some increases this past year to cover. Lots of things still to shake out.

Prez, can you give your thoughts on this?

[NSXCIGAR]

5 hours ago, Tstew75 said:

I understand its effect in Cuba, I was speaking more to general worldwide pricing. Folks in lots of cigar groups are exclaiming 'CCs are going up in price 30%+!'. It's not that clear cut, and in many cases online retailers have already taken some increases this past year to cover. Lots of things still to shake out.

Prez, can you give your thoughts on this?

Island prices aren't directly related to world prices other than I've never seen an island price higher than world price (but I have seen close). Anyone thinking they're connected doesn't know what they're talking about.

Prices went up in CUC. Is anyone in a cigar group using CUC? No. Hard to be more clear cut than that. World price increases occur on an annual or semi-annual basis and have for 25 years. That's a constant. But a huge red flag should go up when CUC prices rise by 30-50%. Obviously, that's a signal there's something else going on. 

If they were really looking for the truth they'd be on this forum...

[El Presidente]

5 hours ago, Tstew75 said:

Folks in lots of cigar groups are exclaiming 'CCs are going up in price 30%+!'. It's not that clear cut, and in many cases online retailers have already taken some increases this past year to cover. Lots of things still to shake out.

Prez, can you give your thoughts on this?

Internationally, HSA are repositioning the pricing on their portfolio.  Annually we see a price increase of around 3-5%.  However in the past three years (not in the same year) we have seen big official jumps in the price of Cohiba, Quai D'Orsay and this year, Trinidad.  9% + 

Throw in a decrease in the value of the USD, a decrease in supply overall throughout 2020, a big uplift in global demand = a significant jump in pricing globally. 

 

 

[mprach024]

Prices seem to pretty consistent on this list at about 10-15% what I see them at in dollars available at online retailers currently.  I was always curious just how much of premium was being added to Siglo VI and BHK, and this was eye opening.  I knew it was a lot but wow.  

[Viva Vegas]

Did the price of Cuban cigars go up for export too? Also on the island did the custom rollers up their prices? Thanks

[treberty]

Is or normal to see so many discontinued cigars listed or did I miss something?

[Bijan]

10 minutes ago, treberty said:

Is or normal to see so many discontinued cigars listed or did I miss something?

Yeah they always keep them on for a long time, and the prices don't update because they don't exist so they seem like a really good deal

 

[NSXCIGAR]

3 hours ago, Viva Vegas said:

Did the price of Cuban cigars go up for export too? Also on the island did the custom rollers up their prices? Thanks

There seems to still be some confusion here...prices rose in CUC only. CUC is used only on the island for purchases on the island. CUC can only be acquired on the island. Distributors don't pay in CUC. The only reason prices have risen in CUC is because CUC has been devalued substantially over the last 8 months, however the new prices don't reflect the de facto, off-market exchange rate of ~1.55:1. This means that the new, higher CUC prices are still lower in USD than they were before assuming the ~1.55:1 exchange rate. The government will still be raking it in since many tourists will not be exchanging currency off-market as those in the know would do, nor do they travel with much cash, meaning bank cards, and card transactions still get converted at the official exchange rate of CUC 1:1 which hasn't changed.

To answer your second question, I would assume all prices in Cuba have risen for all goods and services in CUC including custom rolls.

 

[NSXCIGAR]

5 hours ago, mprach024 said:

Prices seem to pretty consistent on this list at about 10-15% what I see them at in dollars available at online retailers currently.  I was always curious just how much of premium was being added to Siglo VI and BHK, and this was eye opening.  I knew it was a lot but wow.

At the new prices, assuming the ~1.55: 1 off-market exchange rate, Siglo VI would be $461. Same or less as before--can't recall exactly what it was, but close to that. 

Bring cash, exchange privately, don't use bank cards.

[Nino]

3 hours ago, NSXCIGAR said:

Bring cash, exchange privately, don't use bank cards.

Can't be repeated enough ... Amen to that.

[zigarrenziggy]

14 hours ago, NSXCIGAR said:

Bring cash, exchange privately, don't use bank cards.

Unfortunately, over on the Cuba Travel Forum there is some anecdotal evidence that that may not be possible.

https://share.getcloudapp.com/Jruqb0OZ   (screenshot of conversation)

[NSXCIGAR]

1 hour ago, zigarrenziggy said:

Unfortunately, over on the Cuba Travel Forum there is some anecdotal evidence that that may not be possible.

https://share.getcloudapp.com/Jruqb0OZ   (screenshot of conversation)

I'll need more than one second hand report to believe that as it would be extraordinary (and extraordinarily bad). Maybe @JohnnyO knows something? 

That also makes no sense as island prices for most stock would be at or above world prices.

[zigarrenziggy]

Hence why I said anecdotal

[Nino]

I messaged the manager of a large & well known Havana cigar store and just received the reply :

No change in payment methods, CUC in cash still accepted as payment, only thing that has changed is a price increase...

So, it's back to : Bring cash, exchange privately, don't use bank cards.

[JohnnyO]

I was at 5ta y 16 last Thursday and they were closed for inventory. They let me look around. Prices were still posted on the boxes in CUC and CUP. They did say that once they were done with inventory that they would put the price increases. They were not sure what the policy would be, credit card, CUC/CUP or USD. Went to the Comodoro and they were closed as well, as their hours have changed. They are open 9am-4pm and closed on Sundays. Every bottled/canned beer I drank was ready for the suspect forum. Some I took a sip and threw it away. I did find a restaurant with Crystal on tap that was great, even though they were serving them in Barbie sized glasses at 1 CUC. There is a lot of panic from the locals, as we are COVID. At the airport the COVID test is administered to everyone. They hand you a little box with a glass vial inside. I took a picture of it as it had a number assigned, in case they mixed-up my test with someone else's. Some of the homes I went to all the family members were wearing masks inside the house. Most places upon entering they sprayed your hands with some Windex/Clorox mix. Upon returning at the airport they took temperatures, as well as just before boarding the plane. Excessive amount of police in the streets. Many places are shut, at 1ra y 70 they have this massive project to build more hotels. Cranes working 24 hours. Across the street on the beach side there are about 10 open air ranch style restaurants with a different themes/music. Once you entered the restaurant everybody had their masks off, dancing and carrying-on. There were thousands there. A beer was 5 CUC, some of the worst I've ever had. Back to the restaurant with the tap beer. The bodegitas (like the ones at 5ta y 16) hardly had anything, and shelves were mostly empty. Many of the casa particulares have turned in their licenses as they pay a monthly fee and a commission of their rentals and haven't had any guests in 9 months. Getting a taxi was difficult, even in the touristy areas. This might take a while to get back to normal. John

[1LegLance]

John thanks for the boots on the ground update...

Normally I visit in the spring for the harvest but I had thought about going this month just to help inject some cash into the economy but I am not sure if it is more of a burden to have a tourist around.

I will have to check with my fav 2 Casas to see if they are still in operation.