Pricing cigars correctly for your establishment depends on 3 variables: Business Type, Demographic, Cigar Cost. I will break down all three of these to give you a better idea.
- Convenience Stores: These are store where people generally expect a bargain so you should expect to markup cigars around 2-2.5x from what you paid.
- Liquor Stores: 2-3x
- Golf Pro Shop, Bars & Restaurants: 2.5-3.5x
- Steak Houses & Strip Clubs: 3-5x
DEMOGRAPHIC: If you cater to more budget conscious consumers then use the lesser markup above. So a restaurant for example, would markup their cigars 2.5x. And respectively, use the larger markup for more affluent areas.
CIGAR COST: Less expensive cigars can marked up higher than more expensive ones. For example use the larger markup on your less expensive cigars, and the smaller markup for your higher priced ones.
And if you still have questions you can always call us directly for more guidance toll free at 844-63CIGAR