Cost

kardar2

I was looking at a cigar magazine I noticed that a cigar smaller in length and ring gauge was more expensive than the bigger size. I started to think why this would be? I was guessing maybe the most popular, My next question came to me and knowing that there is a mark up on every thing that you buy due to shipping advertising etc. How much does it cost to produce one cigar. Now I know that there are different methods to make certain cigars which add to the cost of making a cigar. but you can get a stick for less than a buck. So I am guessing that those kind of cigars are pretty cheap before they leave the plantations. I would love to go to a Plantation and find out, does any one know?

bass8844

I'm not an expert on this by any means, but there are many costs that factor into the price of a cigar.

Where was the tocacco grown? Different countries have diff. costs.
How long was the tobacco aged? The longer it ages, the longer it takes up space. Usually companies have large stockpiles of tobacco aging so that they can continually produce cigars that are consistent with one another.
Who rolled your cigar? Was it a newbie or a grand master torcedor? I'm sure the pay scale differs a bit.
Supply/Demand? If people really want it, usually the price goes with it.
Marketing/Packaging? Advertising costs money and so does packaging. Boxed or bundled...the consumer pays the difference.

I know theres a lot of stuff that I've left out, but in a nut shell, price is a large variable.

kardar2

bass8844:

I'm not an expert on this by any means, but there are many costs that factor into the price of a cigar.

Where was the tocacco grown? Different countries have diff. costs.
How long was the tobacco aged? The longer it ages, the longer it takes up space. Usually companies have large stockpiles of tobacco aging so that they can continually produce cigars that are consistent with one another.
Who rolled your cigar? Was it a newbie or a grand master torcedor? I'm sure the pay scale differs a bit.
Supply/Demand? If people really want it, usually the price goes with it.
Marketing/Packaging? Advertising costs money and so does packaging. Boxed or bundled...the consumer pays the difference.

I know theres a lot of stuff that I've left out, but in a nut shell, price is a large variable.

yeah i realize all the factors but lets say a CAO and you pay $10 for it How much did it cost to produce this one cigar. I would guess $2 maybe less. Its crazy to think about what you end up paying. I work at A Dam that produce hydro electricity the federal government owns the dam when the electricity comes out it is all most free but when you end up getting it to your house you are yelling at the power company about paying so much. LOL

bass8844

Kind of hard to say exactly how much it really costs the company to produce the actual cigar.

Maybe if you know someone who works at the IRS you could ask them to see CAO's tax returns! Then divide the total income vs how many cigars they produce. Or you maybe you could just call them and ask!

Be sure to let us know how that goes!

madurofan

bass8844:

Kind of hard to say exactly how much it really costs the company to produce the actual cigar.

Maybe if you know someone who works at the IRS you could ask them to see CAO's tax returns! Then divide the total income vs how many cigars they produce. Or you maybe you could just call them and ask!

Be sure to let us know how that goes!

HA! I'm sure they'd volunteer that right up!

Its hard to say what it costs to make a cigar, I certainly have no idea. But I will say this. Larger cigars cost more than smaller cigars because they contain more tobacco AND they take more time to roll. A torcedor creates less Churchill's in one day than he would Robustos.
Now this is where it gets a little different. Figurados(Perfectos, Torpedos, etc fall into this generic category) take more time than a robusto, churchill or corona. Also the very best torcedors are usually chosen to roll these shapes. So not only do you have a your highest paid torcedor rolling them but instead of rolling 500 coronas he may be only rolling 150 perfectos.

alienmisprint

You also have to take into account marketing and advertising along with all the other costs of running the business not directly tied in to the production costs. No to mention packaging, alot of premium cigars come in elaborate, hand-made boxes. The CAO Vision, for instance, comes in a box rigged with an elecronic hygrometer.

phobicsquirrel

so this all comes into play with gurkha. that's what your paying for the boxes! lol.

madurofan

phobicsquirrel:

so this all comes into play with gurkha. that's what your paying for the boxes! lol.

Indeed.

mustluvcigars

consider this:
new cigar tax=52.6% of manufactor's cost with 40 cent cap
so the government is only taxing the manufacor on the first 80 cents?hmmm?

kuzi16

mustluvcigars:

consider this:
new cigar tax=52.6% of manufactor's cost with 40 cent cap
so the government is only taxing the manufacor on the first 80 cents?hmmm?

thats just gunna be passed on to us as 40 cents.

i think maddy has it right on with the cost issue

mustluvcigars

kuzi16:

mustluvcigars:

consider this:
new cigar tax=52.6% of manufactor's cost with 40 cent cap
so the government is only taxing the manufacor on the first 80 cents?hmmm?

thats just gunna be passed on to us as 40 cents.

i think maddy has it right on with the cost issue

Im sure he is correct as well
but if the tax cap is somewhere in the ballbark of average cost or even higher than average cost that puts the the cost well below a dollar a stick..or they could have just pulled those numbers out of a burro...
just some speculation to add to the discussion