Retail profit margins and MSRP

As stated in the title, a place to discuss cigars and things related to them.
Ryan
Posts: 231
Joined: Sun Jun 22, 2008 4:36 am

Re: Retail profit margins and MSRP

Post by Ryan »

To me the whole thing would be a business to have because you love it, and to hopefully make a decent living.  I kind of liken it to the gym business to an extent.  You open a small one or even franchise a Golds or Powerhouses...and it's nice because you are in an environment you love and can make a living though you certainly aren't going to get rich.  My 2 cents.
WadeFillingame
Posts: 1530
Joined: Wed Apr 04, 2007 12:14 am

Re: Retail profit margins and MSRP

Post by WadeFillingame »

There is a contract requirement out there called Minimum Advertised Price or MAP.  It is the reason why you never see Oakley sunglasses, DuPont Lighters, Nightforce Scopes, or Fuente cigars advertised at huge discounts from contract dealers.  If you do see these items at deep discounts they are by grey market sellers who have picked them up from someone who needed to move something.  It's done to protect the brand value and to protect the distribution system.

I know of a guy who was discounting Premier Heritage scopes, other sellers complained to PH, they had someone call up and get the discount and he lost his acct.
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