Establishing pricing

[Habanos2000]

Rob, et al....

I always wondered, what is the basis for HSA establishing the "market price" for a certain cigar? For example, Cohiba's are expensive because they're triple fermented, DC's are more expensive because they utilize larger leaves. EL's are more expensive because they're better (just kidding).

How much comes down to brand, quality of tobacco used, size of cigar, popularity, or??

Gracias!

[Guest rob]

I'm neither Rob, nor Et Al... but I believe factors like brand "tier" comes into a lot of the pricing. Different tiers utilise leaf from different parts of Cuba. The premium areas growing leaf that goes to the 'premium' brands etc...

But I'm probably wrong so don't read to much into it.

[PigFish]

The last time I saw a distributors price list was years ago. Things might have changed since but cigars were priced per gram of tobacco. It was that straight forward and simple. Did I say cheap... the cigars were cheap too???

Don't ask me for the list!

How H SA prices tobacco to the various distributors today is beyond my knowledge. I would not be at all surprised if they are still sold at a price based on weight for normal production.

- Piggy

[Guest rob]

Again, I'm no expert... but if it were priced by weight, then that would make a PSD4 and RASS cost the same as a Trinidad T and CoRO (or vise versa).

[PigFish]

I would have to find the list but as I recall all cigars like dress boxed PC's were the same price. You are right on here Rob. The price breaks came down to packaging. Yep... More expensive boxes means a more expensive cigars!

Like I have said. I believe that H SA has become a cigar box company more than a cigar company! -Piggy

[Colt45]

Hey, those extra bands add weight! (sorry H2K )

[Habanos2000]

are you guys telling me a company would just dress the same product up and charge exponentially more for it? That's unheard of, but good for the bottom line.

starting price $32,000

starting price $62,000

I was wondering/hoping that there might be a strong correlation between the quality and quantity of the tobacco and the price. I guess that's true in some cases like the GR, but just curious to figure out if typically better and more expensive tobacco is used for the high end brands with the avg to below avg tobacco automatically dropped to the less popular brands?