Cost
kardar2
Posts: 43
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?
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Comments
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.
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!
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.
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?
i think maddy has it right on with the cost issue
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