Choosing Your Retail Price

Retail price is not something that should be decided after the cigar has already been developed. It should be considered before major product and packaging decisions are finalized. Why? Because the price paid by the consumer has to support an entire commercial structure—not just the cost of manufacturing the cigar. A product can be beautifully blended and packaged, yet still be commercially difficult if the intended retail price does not leave enough room for taxes, importation, distribution, retail margins, freight, and the brand owner's own profitability. That is why one of the most useful numbers you can bring to the beginning of a cigar project is: Your realistic target retail price range.