How Packaging Effects Price

PappyJ — Wed, 23 Jul 2008 17:23:00 GMT

Many brands have extravagant packaging, most of which are very expensive. So exactly how much does the packaging affect the cost of a cigar?

Well, when developing a price structure to sell a particular cigar, there are many factors that must be examined before a standard MSRP can be created. Some factors that attribute to the total MSRP include the price of tobacco, laborers, cost of running facilities, and packaging. Typically, the way each brand of cigars is packaged and presented does drastically affect the total outcome of the MSRP. Of course, the cost of the tobacco is the biggest expense, hands down, but any cigars that utilize special packaging will definitely be more expensive than others. Manufacturers producing more premium, higher end cigars tend to use more extravagant packaging simply because it makes the cigar look more credible while also providing the consumer with an elegant package that truly does make you feel good about your purchase. Plus, nice packaging looks fantastic and can sometimes be a collector's item. Regardless, cigar smoking is an art form and creating an expensive box is an art in itself. To some, paying the extra money for a cigar that comes packaged in ivory is exactly what completes the entire experience. For others, finding quality cigars in simple packaging at inexpensive prices is preferred.

Josh

How Packaging Effects Price