SCHIP & Other Crap!

[Grant Gimper]

As a Brother with more tobacco in storage than I can ever hope to use, I have been checking some of the dealers recently & much to my dismay & disappointment, I have found quite a few who have taken the opportunity, in subtle ways, to increase their prices prior to the already cussed & discussed increase that the feds decided to saddle us with. As an example; the McClelland AM (Dunhill EMP knock-off) product has moved from $26.95/lb. in January to $34.50 & upwards of $37.00/lb. All right, I realize that the US is still underpriced with respect to the UK, Canada & Europe but it is still a bitter pill to swallow. As we used to say in my younger years; I don't mind getting screwed but I would appreciate a kiss too! This SCHIP increase might, conceivably, send some of the minor dealers into bankrupsy as the pipe smokers elect to deal with the more responsible dealers in the future.

 

[ftrplt]

As I mentioned in two other threads on this subject, I bought three somewhat large purchases on tobacco the first of the year. And, like GG, was a bit surprised to see some significant price increases shortly thereafter. Before buying, it really pays to search the various dealers sites to recheck pricing. I told myself that I wasn't going to buy any more for quite a while; I may reconsider!! FTRPLT

 

[Doc Manhattan]

The SCHIP levy is another $1.73/lb. Everything else is the usual economic factors--costs, supply, demand, inflation--and retailers don't have much control over any of it. They have to account for everything that drives up the base price of tobacco, and then make an educated guess at what kind of a markup the market will bear. The Hobson's choice here is that higher costs may drive down demand--the seller needs a bigger markup/higher profit margin to account for that difference. What can they charge that won't drive them bankrupt or piss off their customer base?

On the whole, I'm willing to give retailers the benefit of the doubt if they've earned my trust and/or a great reputation in the past. More to the point, I wouldn't be shy about asking, "What's the deal with the upswing in prices on X?" No shame in being an informed consumer, esp. at these prices.

 

[howellhandmade]

I was wondering this myself. I ordered 5lbs of 5100 last week for $156. The same quantity from the same online dealer is now $196. 25% at a whack seems like a bit much.

Jack