Unethical Pricing

[joshhooper7]

At what % of a markup would pricing be considered, "unethical."

I'm on deployment right now and we just pulled in to Dubai. There is a USO Duty Free on the base where the ship is moored and it has a small walk in humidor of Cuban cigars.

Boxes of Montecristo No. 4 for sale for $575. $575!!!!! Siglo VI 10ers for $725. That is off the wall and should be illegal.

There's 3000+ people on a carrier type ship and 98% of them don't know anything about Cuban cigars, they just know of the allure to them because they're the forbidden fruit. That is where they make their money. If predatory lending is black listed, how is a cigar shop like this allowed... on base!

Worst part, all the boxes are sealed and there is a sign that says, "Do not open boxes." I didn't take a look at the box codes because I was so blown away by pricing and policy.

Is it unethical for a business to be selling cigars to unknowing service members at a 250% markup? I think so. What are your thoughts?

Side note: People today paid $525 for a box of Montecristo No. 4 and if they knew of this playpen they could've had a box of tacos!

[JR Kipling]

Information is readily available on market prices for just about anything. Personal freedom comes with personal responsibility.

Bottomline: Do your homework. Let the buyer beware. As long as they’re not sticking a gun to your head forcing you to buy (a strategy of the Mafia & governments) just walk away if you don’t like the deal.

[MD Puffer]

I don't think the term "unethical" can be applied to cigars and other luxury items.  The price will be what the market dictates.  Sounds like there's a lot of buyers who don't know any better and they're taking advantage of that.  If a widget had an acquisition cost of $1 and I could sell it with equal ease for $100 or for $50, I'll gladly take the Franklin any day of the week. 

Have you tried haggling?

When I think of "unethical" pricing the image that comes to mind is price gouging during natural disasters.  Someone marking up 1L bottles of water to 10 bucks each or something along those lines.  

[Derboesekoenig]

Yeah, no such thing on luxury items. Difference scenario when it comes to things like fuel or drinking water. Plenty of other establishments in Dubai to visit for cigars my friend.

[nKostyan]

Two billionaires meet. And suddenly they notice they're wearing the same tie. One says,"I bought mine for$50,000." The second one says, " my tie is much cooler because I bought it for$100,000."

[ChanceSchmerr]

Mate, i'll be pulling up to Dubai on my frigate next year too. Point taken on the USO - but you and I know better and will go to the LCDH instead. I agree with the shittiness of predatory merchants, but dont forget - there is lots of businesses that do that to foreign navy sailors all around the world in every port, for many different products (don't get me started on the outright fraud the Spanish and Italian port services foist on the ship!) . As said above - do your research and understand that there will always be people that pay more and dont know it. Just be sure that isnt you.

[Derboesekoenig]

USO duty free shouldn't even be selling goods from Cuba--it's an American organization after all. Was it AAFES or USO? Either/or though shouldn't be selling goods from Cuba 

[JR Kipling]

You’ll occasionally see eBay listings at 10x or more of the market price. Those items at the regular market price are also available on eBay. I’ve wondered ‘Why bother to list it at such a ridiculous price ?’  But apparently there are those dumb enough or lazy enough to pay that.

If onboard ship, I’d mention it to some of the chiefs to pass on to the crew. And I’d warn other guys & ask them to pass it on. 

[bpm32]

40 minutes ago, Derboesekoenig said:

USO duty free shouldn't even be selling goods from Cuba--it's an American organization after all. Was it AAFES or USO? Either/or though shouldn't be selling goods from Cuba 

One of the Exchanges in Kuwait sold CCs until a do-gooder/hall monitor raised a stink and put a stop to it. This would have been in 2003-2004.

[BrightonCorgi]

Considering it's the USO, not a regular B&M retailer I would say those prices are unpatriotic.  I consider predatory when the consumer is in a must buy situation and retailer dramatically increases prices.

[ac031898]

I tend to agree with most of the comments above on the idea that prices aren't too high if people are willing to pay them, and there's no duress. That being said, I would think that since this is an on-base establishment, the authority that manages the relationship with the retailer could/should have some influence on not charging exorbitantly high prices to its service members.

[Colt45]

2 hours ago, joshhooper7 said:

There's 3000+ people on a carrier type ship and 98% of them don't know anything about Cuban cigars, they just know of the allure to them because they're the forbidden fruit.

If you are willing and able, put together an averaged price list and make it available to anyone on the ship who might be interested. Then they can make more educated decisions.

[MD Puffer]

1 hour ago, Derboesekoenig said:

USO duty free shouldn't even be selling goods from Cuba--it's an American organization after all. Was it AAFES or USO? Either/or though shouldn't be selling goods from Cuba 

Perhaps because it's not US soil?

[Derboesekoenig]

1 minute ago, MD Puffer said:

Perhaps because it's not US soil?

Maybe, but it's still a US company. I would assume we aren't allowed to do business with any Cuban businesses or Cuban government entities.

[El Presidente]

4 hours ago, joshhooper7 said:

At what % of a markup would pricing be considered, "unethical."

As long as the person can walk away unharmed.....there is no such thing as "unethical".

we are not talking about food and water in a situation where people are desperate. 

They are just cigars.......

[Fuzz]

3 hours ago, ChanceSchmerr said:

Mate, i'll be pulling up to Dubai on my frigate next year too.

You have your own frigate?!

[ChanceSchmerr]

49 minutes ago, Fuzz said:

You have your own frigate?!

haha cheers mate. I'm the Engineer, so it doesn't go far without me!

[hedgeybaby]

What the vet charged my Mrs last night when she took the cat in could be considered unethical.  Christmas is now canceled in my house.

 

[pgwdaddy]

Since you’re in Dubai and I’d your schedule allows, head over to the LCDH at City Walk. You can trust those prices.


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[papatrips]

 

3 hours ago, Fuzz said:

You have your own frigate?!

2 hours ago, ChanceSchmerr said:

haha cheers mate. I'm the Engineer, so it doesn't go far without me!

Huh. I learn something new everyday. I thought engineers drove trains. 

[Ken Gargett]

6 hours ago, Derboesekoenig said:

USO duty free shouldn't even be selling goods from Cuba--it's an American organization after all. Was it AAFES or USO? Either/or though shouldn't be selling goods from Cuba 

yes, this is the bit i struggle with. surely this is illegal? 

now, if you think these prices unethical, do you report them? or do you let them continue at these hefty mark-ups? 

[joshhooper7]

2 hours ago, Ken Gargett said:

yes, this is the bit i struggle with. surely this is illegal? 

now, if you think these prices unethical, do you report them? or do you let them continue at these hefty mark-ups? 

I certainly passed the word to all of those who were in the area last night. There was a young kid in the Humidor about to buy a 10er of Monte No. 2's for $405 and I gave him a Monte 2 from my travel humidor to save him money.

I definitely agree that it's unpatriotic and maybe unethical was the wrong term, either way, it's wrong to charge a markup on base where the service members "best interest," is supposed to be paramount.

[prodigy]

What the vet charged my Mrs last night when she took the cat in could be considered unethical.  Christmas is now canceled in my house.
 

No cat is worth cancelling Christmas. Just my opinion of course.

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[bpm32]

2 hours ago, Ken Gargett said:

yes, this is the bit i struggle with. surely this is illegal? 

now, if you think these prices unethical, do you report them? or do you let them continue at these hefty mark-ups? 

Presumably vetted local businesses were selling the cigars, so most likely not illegal. Sort of like how there are a lot of kiosks in the “mall” part of the Exchanges selling, well, junk basically. It’s not the US military itself selling those ornate hookahs on the Middle East bases and velvet tiger art Stateside.

[Wushy]

Do your homework and if they willing to listen, inform them of better alternatives. Other than that, let capitalism do its thing.