C.Gars Auction

[anz3001]

Hi Mitchell

While we have you here -

The retail price of current production cigar's in the UK is about twice the retail price of cigars from duty free shops elsewhere.

Surely if you are comparing retail against duty free the answer is all of the above no?

[Mike72]

Surely if you are comparing retail against duty free the answer is all of the above no?

Not really. Duty free is retail, so they are already making profits on their sales as well as paying operating costs etc, just as a vendor here would do. I doubt that floor space in an airport would be cheaper than London. I believe it would in fact be more expensive.

[nev coss]

must go and take a look,lotto on Wednesday

[Simon Bolivar]

If any of you are in town I would highly recommend visiting the auction live. It's the best way to secure a winning bid (if your first bid isn't successful you can bid on another, which you can't do with online bidding. If you want something slightly more unusual, you might still be able to pick up a bargain, it's worked for me a couple of times. Don't forget to pre-view the lots you're interested in before had. For the first time in 5yrs (?) I will not be opening the catalogue, all my humi's are jammed full & I am saving my remaining cash (after the Herf) for Dubai in Sept.

[smokeymo]

Hi Mike

I'm actually not sure of the accurate answer and didn't know that duty free was half the price of UK retail. I think the last time i actually went to duty free was T5 and the staff were extremely helpful as well as knowledgeable. and the range was fairly decent. to be fair though it was a comprehensive range and not a patch on a full blown specialist range.

I suspect that its partly because duty free knocks off 20% VAT and the whatever proportion of CCT/ Excise duties and also possibly works on a lower profit margin due to volume. Again , I am guessing this is possible because they are owned by substantial corporations.

Conversely I would say that UK high street cigar specialists sell at RRP's ( some higher / Not my shops !) due to operating cost which in most cases is huge ( rent, rates, power, payroll merchant fees etc etc etc ) Most of these retailers are probably single site operators and they are likely just about making a decent living, so discounting is not really a viable option ( a Subway franchise is probably more profitable) I could never understand the economics of a single site operation.

Mail order cigar specialist like ourselves can operate on lower margins strangely enough not so much due to lower overhead but due to humungous volumes.

I guess there are advantages to using all 3 types of retailers, value buying a couple of boxes through Duty Free when travelling, the 'touchy/feely' and cigars sampling experience at a quality high street cigar specialists and finally the fullest range, convenience and pricing of a quality on-line cigar specialist.

Hope that makes sense

Best

Mitchell

Hi Mitchell

While we have you here -

The retail price of current production cigar's in the UK is about twice the retail price of cigars from duty free shops elsewhere. Is the large price difference up to the Government's silly taxes or the cost of EMS imports and or cost of operating in the UK - property costs, minimum wages compared to the rest of the world etc? (not to mention any profit

[smokeymo]

I think you are right Mike,

I remember some years ago negotiating for landside at Glasgow airport as well as meeting to discuss airside with London airports and the terms were an absolute impossibility to make an independent cigar/ whisky business viable.

From memory there was not only a huge rent but also an additional payment based on turnover.Impossible for the small independent


Mitchell

Not really. Duty free is retail, so they are already making profits on their sales as well as paying operating costs etc, just as a vendor here would do. I doubt that floor space in an airport would be cheaper than London. I believe it would in fact be more expensive.

[Emaresee]

Those buy/sell premiums are good compared to prime mayfair & global auctioneers. They also aren't bad value compared to regional auction houses either.

i sat in Christies reception once, waiting for a business meeting with someone there. I watched an impressionist auction live, and bids were going in 100,000 increments like the ticking if a clock.... Staggeringly exciting,meven when you arent involved.

So whats the pick of the catalogue Mitchell? If we reach down the back of the sofa and steal the kids uni fund etc. whats going to be the master lot?

[Mike72]

Hope that makes sense

Thanks Mitchell for the detailed explanation. Much appreciated.

I don't believe the duty free in Terminal 5 is as well priced as others. If I remember correctly, it looked as if it was about 20% (So maybe just VAT) cheaper than the UK "RRP's." I'll have to pay more attention on my next trip.

[Simon Bolivar]

Good explanation Mitch, appreciated.

[smokeymo]

Oh gosh, that puts me on the spot !

in terms of what looks like good value to me ( which is meaningless as these are just estimates) for smokes that I would enjoy :

151

154

156

163

131

128

55

94- 97

276- 279

Best

Mitchell

So whats the pick of the catalogue Mitchell? If we reach down the back of the sofa and steal the kids uni fund etc. whats going to be the master lot?[/QUOTE]

[Emaresee]

now thats drawn me in for a peek!