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Old November 9th, 2009, 08:02 PM
Status: Offline
Join Date: Mar 2008
Location: South OC
Posts: 3,291
Default Re: why does tangiers from the retailers cost so much more

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 View Post
You make a LOT more than $1.00 per box of Nakhla.
If 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.
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