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Price Gouging Esoterica Tobaccos...
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<blockquote data-quote="idbowman" data-source="post: 397256" data-attributes="member: 2165"><p>Yep yep yep. Esoterica is a brand known for it's high demand and similarly high prices. I would have to imagine that the manufacturers and distributors are keenly aware of this, and leverage that demand to create high profits on their end (if they're not, they need a new business advisor).</p><p></p><p>The blender takes its profit when it sells it to the distributor.</p><p>The distributor has to increase the cost to the retailer to cover its own expenses and make its own profit.</p><p>The retailer has to increase the cost to the customer to cover what it pays the distributor and still find profit.</p><p></p><p>If I had to guess, I'd think that P&C (and everyone else) is realizing a similar (perhaps slightly greater) profit margin (%) on the Esotericas as other tinned/pouched blends...the difference is that all of the other built in costs drive the retail pricing up, otherwise it's not worth selling.</p><p></p><p></p><p>Anyone expecting any tobacco product (let alone a brand with Esoterica's reputation, demand, and cult following) to be some sort of a loss-leader is fooling themselves.</p></blockquote><p></p>
[QUOTE="idbowman, post: 397256, member: 2165"] Yep yep yep. Esoterica is a brand known for it's high demand and similarly high prices. I would have to imagine that the manufacturers and distributors are keenly aware of this, and leverage that demand to create high profits on their end (if they're not, they need a new business advisor). The blender takes its profit when it sells it to the distributor. The distributor has to increase the cost to the retailer to cover its own expenses and make its own profit. The retailer has to increase the cost to the customer to cover what it pays the distributor and still find profit. If I had to guess, I'd think that P&C (and everyone else) is realizing a similar (perhaps slightly greater) profit margin (%) on the Esotericas as other tinned/pouched blends...the difference is that all of the other built in costs drive the retail pricing up, otherwise it's not worth selling. Anyone expecting any tobacco product (let alone a brand with Esoterica's reputation, demand, and cult following) to be some sort of a loss-leader is fooling themselves. [/QUOTE]
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Price Gouging Esoterica Tobaccos...
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