Cheap Cigar Bundles And Price

Bundle Cigars

Bundle cigars are the backbone of the cigar industry without bundle cigars there will be no successful cigar companies out there today. The bundle cigars are sometimes called cigar seconds and are made from left over tobacco not used in the cigar factories top tier cigar line. The bundle tobacco shouldn't be looked down on in a negative way because it has the same taste and flavor as the regular premium line, and are still good enough to make great cigars out of it. In a cigar factory there is a lot of tobacco that is left over from production, so instead of wasting it or throwing it away, the cigar makers hand-roll cigars from the left overs. To get a low cost bundle now of days is extremely hard due to the new import tax on premium cigars which is .40 cents a premium cigar. It doesn't seem like a big deal right? Wrong - it is. The cigar import tax of .40 cents a cigar means it gets multiplied 4 times, so all the companies involved can make profit which in return makes you cigars increase in price around a extra $25 a bundle.

I'll try to keep this simple, also these are estimates on costs.

Example: (A) Cigar Manufacture Cost and Import Taxes:

Cigar manufacturers cost on each cigar depending on the brand is roughly around a $1.00 to make down in Dominican Republic or where-ever. Once their cigars arrive into US Customs the Manufacturer pays the US Government a additional .40 cents upfront on each cigar imported into the Country. The manufacturer then adds a additional 80%-100% increase on top of that to make a profit meaning every cigar is now a extra .72 /.80 cents on top of their cost to get the cigars into the Country, so the end result the cigar will be roughly $1.72 /$1.80 cost on each cigar to the manufacturer. Now the manufacturer needs to make a profit to stay in business usually the mark up on the manufactures end can be anywhere from 50% to 100% depending on the company, so with the mark up for profit the end result will be around $2.58 @ 50% / $3.60 @ 100%.

(B) Manufacture to Wholesaler to Retail Exchange:

The manufacturer now needs to sell their cigars to wholesalers at price range from $2.58 - $3.60 a cigar (from the numbers above) . Once the wholesalers buy the cigars they usually mark them up a additional 20%. Now that $2.58 - $3.60 a cigar turns into $3.10 - $4.32 at the wholesalers price to sell to retailers. Once the retailers purchase cigars from wholesalers then the retailer marks them up a additional 100% depending on the brand, so in the end result the cigar that started out as a $1.00 cigar is now in a range of anywhere from $5.16 - $7.20 without shipping costs added. So the bottom-line is that extra .40 cents has really screwed up the entire bundle cigar market. It is very difficult to get a cigar bundle for under $2 a cigar the only way a cigar retailer or cigar company can is have a direct relation to the factory down in the Dominican Rep like we do this is why our Organic House Blend Bundle cigars are so great and affordable. We at nhcigars.com have hands on with our Organic House Blend Bundle cigars with quality control and price because we purchase so much of them. If you never had one of our famous bundle cigars you are missing out, give them a shot; it can hurt it's only $1.59 a cigar. $39.95 for a bundle of 25 that's unheard of in the cigar business . 

 

The S-Chip Bill signed into law back in February 2009 pushed by Democrats as usual

 

Federal Excise Tax Increase and Floor Stocks Tax

The Act increases the Federal excise tax on all tobacco products and cigarette papers and cigarette tubes, effective April 1, 2009.  In addition, the Act imposes a floor stocks tax on all tobacco products (except large cigars), cigarette papers and cigarette tubes held for sale on April 1, 2009.  A floor stocks tax is a one-time excise tax placed on a commodity undergoing a tax increase.  The amount of the floor stocks tax is equal to the difference between the new tax rate and the one just previous to it.  Any person who holds tobacco products (except large cigars), cigarette papers, or cigarette tubes is liable for the floor stocks tax on April 1, 2009.  This includes, for example, wholesalers and retail dealers, as well as manufacturers and importers who are holding taxpaid or tax determined products.  Each person is allowed a credit against the tax of $500. Liability for the floor stocks tax must be established by inventory.  The Act stipulates that the floor stocks tax must be paid on or before August 1, 2009.  Because August 1 is a Saturday, the floor stocks tax must be paid on or before the preceding day, July 31, 2009, in accordance with 26 U.S.C. 5703(b)(2)(E). As noted above, more information related to the floor stocks tax will follow.  The tax rates in effect on April 1, 2009, and just previous to the increase, as well as the floor stocks tax, are shown in the table below.  

Product

Tax Rate effective March 31, 2009

Tax Rate effective
April 1, 2009

Floor Stocks Tax Rate

 (difference between
 the rates)

Small Cigarettes - Class A

(Weigh 3 lbs. or less per 1,000)

$19.50 per 1,000
equivalent to:
$3.90 per carton
$0.39 per pack

$50.33 per 1,000
equivalent to:
$10.066 per carton
$1.0066 per pack

$30.83 per 1,000
equivalent to:
$6.166 per carton               $0.6166 per pack

Large Cigarettes - Class B*

(Weigh more than 3 lbs. per 1,000)

$40.95 per 1,000

$105.69 per 1,000

$64.74 per 1,000

Small Cigars

(Weigh 3 lbs. or less per 1,000)

$1.828 per 1,000

$50.33 per 1,000

$48.502 per 1,000

Large Cigars

 

(Weigh more than 3 lbs. per 1,000)

20.719% of sales price but not to exceed $48.75 per 1,000

52.75% of sales price but not to exceed $0.4026 per cigar (or $402.60 per 1,000)

NOT PART OF FLOOR STOCKS TAX

Chewing Tobacco**

$0.195 per pound

$0.5033 per pound

$0.3083 per pound

Snuff**

$0.585 per pound

$1.51 per pound

$0.925 per pound

Pipe tobacco**

$1.0969 per pound

$2.8311 per pound

$1.7342 per pound

Roll-your-own tobacco**

$1.0969 per pound

$24.78 per pound

$23.6831 per pound

Cigarette papers***

$0.0122 per 50

$0.0315 per 50

$0.0193 per 50

Cigarette tubes***

$0.0244 per 50

$0.0630 per 50

$0.0386 per 50

 Here is a chart from TTB.gov - Federal Tobacco Tax Increases.