different states have differnt tax laws for tobacco. not accusing HS of this but nakhla is the most black marketed product on the shisha market, meaning, taxes are avoided. I pay $6.25 (more for cans, jars, sherezade, mizo etc)for it and sell it for $9.50, i think, take of 20% or $2 and I'm at $7.50, ok so I make $1.25 per box. (not advertising, just making this point for argument's sake)
Again, states vary regarding what's built into that price, CA has about 45% tobacco tax factored into it. Some states have little or none, meaning their costs of Nak can me in the $4 range. Not sure again of HS.
Also, supermarkets are great places to buy shisha, they only mark up about 20%, hence the $7.99 price tag.
I get asked alot to put together a package deal for Nakhla like other brands, the reason is there is no margin in it. From a business standpoint I only carry Nakhla for 2 reasons, becasue you guys like it and it sells pretty good. However from a business point of view it's not worth stocking up one. I would rather sell SB all day but thats not the way it is. Mind you I smoke Nak 50 bowls at least to 1 bowl of SB.
Originally Posted by MichaelMassacre
You make a LOT more than $1.00 per box of Nakhla.
If HookahSet.com can sell it for $7 bucks a 250g, my local shop sells Nakhla for $7.99 & nazar can sell it for 9.99 I am sure you COULD lower your prices
But I am not complaining because I DO go through them. You have more advertising costs than them I am sure & are obviously making enough profit. BUT you are making more than a dollar a box... Unless you have some absurd dealer you get it from.
Just to throw it out there.