Cigar price comparison – Pricewatch 2019
With plenty of extra margin available on cigars, Tamara Birch breaks down everything you need to know
Despite the challenges facing the tobacco market, retailers are still pricing cigars at a premium. Up to 60% of retailers across all 12 of this week’s lines are charging above the most common single price. In three charts, our cigar price comparison for 2019 will help you take advance.
Signature leads the trend, with up to 65% of retailers pricing higher. Signature Blue 10s is being sold at up to £5 higher than the most common price.
A third of retailers are playing it safe with Hamlet Fine 5s and Castella Classics by sticking to the most common price. However, with almost half charging a premium, these retailers could be missing out.
As cigars are exempt from many parts of the legislation shaping cigarettes and rolling tobacco, they can still be sold individually or in 10-packs.
To capitalise, introduce a core range of individual, five- and 10-packs to cater for every customer. With Christmas coming, offering a premium range of cigars could help you stand out.
Percentage of stores selling above, below and at the most common retail price:
Panama Thin Panatellas 6s
Store Best-one @ Brownlies
Location Biggar, South Lanarkshire
Size 4,500sq ft
“Our cigar range is based entirely on what customers have asked for, but it’s significantly decreased since vaping has become popular. I’ve learned that I need to be quite ruthless in what we stock as it’s quite a niche market. I started out stocking single packs and 10s, but I have now reduced this to packs of six because they weren’t selling. If someone new moves to the area and they request a specific cigar product, then it’s important we go out of our way to stock that product. This is to encourage them to become a regular customer.”
Moments Blue 10s
Signature Blue 10s
Hamlet Miniatures 10s
Store One Stop – The Prior Way
Size 1,800sq ft
“We don’t stock a massive range, but it’s important to tailor your range to customer demand. I have learned there’s a spike in cigar sales during the festive period and New Year, as our customers like to celebrate in style. Stocking a core range of known brands has worked well for us, and if a customer asks for a particular brand, then we will get it in for them. Cigars are difficult to sell because they are stocked in the gantry, so customers don’t really know we stock them. If a customer requests a product, I will get it in for them.”
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