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why does tangiers from the retailers cost so much more

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  #26  
Old November 9th, 2009, 03:42 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by Hayter View Post
I also think it is a supply and demand thing with the hookah tobacco as well. Look at the price differnces for just naklah at all the different sites. I completely understand wanting to make a profit. It keeps you are your family fed as well as the roof over your home and business. If Eric sells it at 10 bucks per 250g, the vendors i am sure buy it close to that, maybe a little lower depending on the amount that they buy. So say they buy it at 10 bucks. Sell it for 15. Thats 5 bucks a 250g bag. Hardly a large profit.

I can see if you are buying like 8 kilos a week, ok fine give you a great price to keep you coming back. Only buying 3 kilos every few months or so. In reality, not that great of an idea for a place to cut their profit by that much for you.

If you want to pay the lowest possible prices, go down to see Eric, and buy 3 or more kilos. My buddy goes down there and buys 3+ kilos every 2 weeks. He gets them for about 30 bucks a kilo. Again though, he goes there every couple of weeks. lol. . Let the vendors make thier money, and if you dont like the price, dont buy it. This is just my 2 cents on the situation.
After combos and discounts from my favorite vendor I only spend about 11.50 per 250g pack before shipping. that's even less than estimated. frankly I find that to be pretty nice of the vendor considering that what they pay is most likely not much less than what we pay from Eric.
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  #27  
Old November 9th, 2009, 03:44 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by kalutika View Post
After combos and discounts from my favorite vendor I only spend about 11.50 per 250g pack before shipping. that's even less than estimated. frankly I find that to be pretty nice of the vendor considering that what they pay is most likely not much less than what we pay from Eric.
Exactly my point. Although you are going to have to teach me this trick.. LMAO
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  #28  
Old November 9th, 2009, 03:55 PM
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Default Re: why does tangiers from the retailers cost so much more

if i may chime in aon a couple of points. eric will give you just about the same prices he gives vendors if you make the trip to his store. i used to think this was unfair but only 1% of tangiers smokers are able to do this. I talke to Eric about if he would ship to any consumer if they called him directly for an order and his response is rarely, under certain extreme circumstances.
now somewhere in this post i read doubling a price in retail is a rippoff. whoever said that can you please give me your business resume? how many companies have you run? let's do this, let's say a retailer buys a product for $50, marks it to $100, that's double, offers 15% promocodes, and between credi card charges and packaging loses another 5%, so now the retailer is at $80, meaning $30 net profit. What about time? What about rent? What about employees. I find the "ripoff" comment offensive and naive. Retailers don't set up shop just to make the consumers life easier, they do it for a profit, all of them, even though they may act like they are not making $$$.
If Eric charges you the same as he charges me it doesn't mean I will change my prices to sell it at cost, and I definately will not sell it to you to make $1 per 250g. That's what Nakhla is for...volume.
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  #29  
Old November 9th, 2009, 04:01 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by ************* View Post
if i may chime in aon a couple of points. eric will give you just about the same prices he gives vendors if you make the trip to his store. i used to think this was unfair but only 1% of tangiers smokers are able to do this. I talke to Eric about if he would ship to any consumer if they called him directly for an order and his response is rarely, under certain extreme circumstances.
now somewhere in this post i read doubling a price in retail is a rippoff. whoever said that can you please give me your business resume? how many companies have you run? let's do this, let's say a retailer buys a product for $50, marks it to $100, that's double, offers 15% promocodes, and between credi card charges and packaging loses another 5%, so now the retailer is at $80, meaning $30 net profit. What about time? What about rent? What about employees. I find the "ripoff" comment offensive and naive. Retailers don't set up shop just to make the consumers life easier, they do it for a profit, all of them, even though they may act like they are not making $$$.
If Eric charges you the same as he charges me it doesn't mean I will change my prices to sell it at cost, and I definately will not sell it to you to make $1 per 250g. That's what Nakhla is for...volume.
Thank you John. I continue with my belief of how much ass you kick.
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  #30  
Old November 9th, 2009, 04:06 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by kalutika View Post
Thank you John. I continue with my belief of how much ass you kick.

+1, and this is why i only deal with John. well ok, I may take a trip down to tangiers, but HIGHLY unlikely. Im lazy.. HAHAHAHAHA..
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  #31  
Old November 9th, 2009, 04:06 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by armenakadino View Post
I can understand the mark up has to be done to keep the businesses running but double the price is crazy. The mark up is enough that if I spend 100 dollars online for tangiers vs the store id save enough money to have enough money to drive down to tangiers from la and have enough for a round of hookah, rental car and gas
How do u expect to keep a business running with no profit. He charges that because its a special price for visiting his lounge. you cant order online directly from him so he must sell his products to reatilers like HC and HJ. They need to pay rent, website fees, workers, etc. 10 for 250g to 14 for 250g is not that big of a deal.

Last edited by annual; November 9th, 2009 at 05:21 PM.
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  #32  
Old November 9th, 2009, 04:09 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by Bogalu View Post
No the profit is closer to 20. Shipping is not as much as you'd think it would be. Did you know you can ship 150 pounds worth of merchandise for under 70 bucks if you go through the correct shippers? Second, websites and advertising is an associated cost of running a business, you don't take it out on the customers, you take it out of your profit. If I buy 3 kilos of tobacco 6 times a year then thats close to 110 bucks in profit for little bit of effort. If thats not enough then fine, because to eric, that is MORE than enough.
I think its laughable to think that just because you purchase a large quantity that you should be given special treatment?
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  #33  
Old November 9th, 2009, 04:09 PM
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Default Re: why does tangiers from the retailers cost so much more

maybe if you knew how a business was actually run and the costs involved in running a business you would understand what a mark up is.

the firm that makes the product usually wholesales it out to vendors to sell their product. their sole concern is making the product. if they are spending time selling the product to consumers it lowers their efficiency and productivity. thats why tangiers wholesales their product out to vendors who branch out to consumers to sell their product.

the vendors calculate their costs and the consumer demand to MAXIMIZE their profit in most cases. they are going to sell a certain quantity at a certain price that will yield them the highest gains. not too many people are going to get into a business for fun to make a few bucks.

go to school and learn something.

Last edited by wesclrg; November 9th, 2009 at 04:12 PM.
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  #34  
Old November 9th, 2009, 04:14 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by BIGPOPPA View Post
I think its laughable to think that just because you purchase a large quantity that you should be given special treatment?

Not to flame on the OP, but to thinkthat 3 kilos is a large order is funny to me. Yeah i wouldnt have 3 kilos around myself. To a person 3 kilos is a lot. To a business 3 kilos is nothing, when they have vendors like john that go there and buy 6,7,8 or more kilos at a time. Go see johns last vid he posted up on you tube. You will see a large order.. lol
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  #35  
Old November 9th, 2009, 04:15 PM
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Default Re: why does tangiers from the retailers cost so much more

i would expect vendors to charge 50% more than what they get the items for. they need to make a living. it is not acctually that cheap to run a bussines. eg rent, storage, advertising ect and alot of vendors give 10-20% off.
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  #36  
Old November 9th, 2009, 04:19 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by Hayter View Post
Not to flame on the OP, but to thinkthat 3 kilos is a large order is funny to me. Yeah i wouldnt have 3 kilos around myself. To a person 3 kilos is a lot. To a business 3 kilos is nothing, when they have vendors like john that go there and buy 6,7,8 or more kilos at a time. Go see johns last vid he posted up on you tube. You will see a large order.. lol
I am a frugal person and when I order my minimum order is around a kilo at a time. Usually once every couple months. I know people that order far more than that on a regular basis. I would order probably twice that if i did not have sponsorship that gives me tobacco monthly lol.
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  #37  
Old November 9th, 2009, 04:22 PM
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Default Re: why does tangiers from the retailers cost so much more

also Eric owns a shisha lounge. he probably makes about 200% profit for what the actual cost of the hookah is. he is making money form other place to cover the cost to sell the tobacco to customers at wholesale price. i dont know how much it is to smoke but it cant be more than a few bucks for that much tobacco and 3/4 rounds of coal.
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  #38  
Old November 9th, 2009, 04:51 PM
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Default Re: why does tangiers from the retailers cost so much more

I order rarely and buy from local shops. When I order, I order 250g usually. not much. But larger orders shouldn't get a discount. I want to say this, there were some pretty snide comments. Let's keep this a respectful discussion. The OP had an opinion and I don't think it's fair to badmouth them. Hookah Pro is all about intelligent discussion and help for people in need, not to bash.
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  #39  
Old November 9th, 2009, 05:57 PM
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Default Re: why does tangiers from the retailers cost so much more

i'm a consumer just like anyone else and i would like to think that i can save as much as i can on purchases by finding the best deal. most of what i consume is from costco just because of the quality, selection and how far my $$$ go. i am definately not 1 sided about this, but things need to make sense on both sides. also, i am not attacking anyone, i do like having these open discussions where i can take and give.
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  #40  
Old November 9th, 2009, 06:01 PM
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Default Re: why does tangiers from the retailers cost so much more

we have costco in the UK
i like the foil from there. you get a huge amout for about 10.00 its lasted me over a year and i smoke every day some times more
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  #41  
Old November 9th, 2009, 06:53 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by abzy786 View Post
also Eric owns a shisha lounge. he probably makes about 200% profit for what the actual cost of the hookah is. he is making money form other place to cover the cost to sell the tobacco to customers at wholesale price. i dont know how much it is to smoke but it cant be more than a few bucks for that much tobacco and 3/4 rounds of coal.

You may want to consider how much it actually costs him to make the tobacco as well. I can promise it's a minuscule amount of money compared to how much it actually sells for. So the amount he charges for a bowl at the lounge is probably far beyond the 200% mark. Nothing wrong with that. just making a point.
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  #42  
Old November 9th, 2009, 07:01 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by Bogalu View Post
Thats why I said $1.50 ****AFTER**** cost and shipping, in other words, after all costs involved with the product. It means I'm offering 1.50 of pure profit per bag in excess of 12 bags at a time.

You say make a $1.50 profit per pack, but you arent considering the rent rates( basically overheads), packaging cost, the actual shipping cost that most vendors discount, the various discounts given, the time it takes to package every order, the workers, etc etc.

They are a lot of cost involved when you have a shop even if it is online, like credit card transaction cost etc, that customers dont consider.

So on the whole we dont know how much vendors make it could be $2 per pack or $5, but if you check most website the prices are within 10% of each other and thats for a reason not to rip customers off, but because they are hidden cost that everyone doesn't see

So its unfair comparing a vendors cost to wholesalers cost, if everyone could get wholesale prices they would be no vendors left
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  #43  
Old November 9th, 2009, 07:05 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by ************* View Post
if i may chime in aon a couple of points. eric will give you just about the same prices he gives vendors if you make the trip to his store. i used to think this was unfair but only 1% of tangiers smokers are able to do this. I talke to Eric about if he would ship to any consumer if they called him directly for an order and his response is rarely, under certain extreme circumstances.
now somewhere in this post i read doubling a price in retail is a rippoff. whoever said that can you please give me your business resume? how many companies have you run? let's do this, let's say a retailer buys a product for $50, marks it to $100, that's double, offers 15% promocodes, and between credi card charges and packaging loses another 5%, so now the retailer is at $80, meaning $30 net profit. What about time? What about rent? What about employees. I find the "ripoff" comment offensive and naive. Retailers don't set up shop just to make the consumers life easier, they do it for a profit, all of them, even though they may act like they are not making $$$.
If Eric charges you the same as he charges me it doesn't mean I will change my prices to sell it at cost, and I definately will not sell it to you to make $1 per 250g. That's what Nakhla is for...volume.
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.
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  #44  
Old November 9th, 2009, 07:11 PM
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Default Re: why does tangiers from the retailers cost so much more

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Originally Posted by Bogalu View Post
If I'm placing a mass order, then take care of me.
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Originally Posted by Bogalu View Post
. If I buy 3 kilos of tobacco 6 times a year
So every 2 months you order 3 kilos of tangiers, personally i wouldnt call that a mass order, what would you consider "mass order" and to be given the discount rate, because i order at least 5 or 6 kilos a month and im by no means a "mass order"

Just today i picked up 9 kilos of al fakher and didnt get any cheaper rate, just got what i would if i bought 1 kilo
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  #45  
Old November 9th, 2009, 07:33 PM
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Default Re: why does tangiers from the retailers cost so much more

i think you get discount if you buy 10 or more KG or a carton which is normally 12 im not too sure.
but in the UK we pay 10.00 to smoke at a hookah bar and they use AF which is cheaper than tangiers and i am sure the bowl and cole costs about 2.00 at the most which is probably why eric can charge less and is willing to charge less if people smoke at his caf.
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  #46  
Old November 9th, 2009, 07:52 PM
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Default Re: why does tangiers from the retailers cost so much more

Ultimately, i think its a matter of what one persons perception of worth is. As well as Net cost. As well as Econ 101.. lol

Profit is a very good thing. Someone could buy something for 1 dollar, and sell it for 10. I have seen it. :::cough:: Home Depot::: cough::: I used to be a Department Supervisor. The cost and profit off a lot of things were seriously rediculous. However, people gladly pay the prices.

Anyway i am getting sidtracked. One person can look at something and think its worth a buck. While someone else looks at it and can think its work 20. If they can get someone to buy it for 20, guess who just made more money.

You take your cost, your mark up percentage, and the profit margin (sorry this is very simplified). This is where it fluctuates. What i am wondering, is if the tobacco and coals are considered a commodity. If they are, the price for them will fluctuate considerably. So the price to the consumer will as well.
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  #47  
Old November 9th, 2009, 08:02 PM
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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.
Quote:
Originally Posted by MichaelMassacre View Post
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.
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  #48  
Old November 9th, 2009, 08:05 PM
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Default Re: why does tangiers from the retailers cost so much more

Lol everybody has to make a living dude.
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  #49  
Old November 9th, 2009, 08:30 PM
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Default Re: why does tangiers from the retailers cost so much more

I wasn't trying to imply any vendor on here was ripping people off. In fact I wasn't implying anything I said TO a vendor participating on this site. I mean that sites, I'm not going to name all of them, and I will stress there are a LOT of sites selling at this rate, for instance the Hookahcompany.com has tangiers at regular price at 17 bucks! Not to forget the beloved F-line at 19 for regular price. Now granted they might have it cheaper if they have a sale but those are there regular prices. That is a HEFTY profit. I especially wasn't implying anything to you hookah john, after all I've ordered quite a bit from you, including tangiers on 1 or 2 occasions, including the KM hookah which is beyond beautiful and I thank you for. But the point of this story was to make awareness of the ongoing issues with the prices that many sites like the hookah company are selling items like tangiers for. I really don't appreciate how everyone was bashing me but I suppose I was asking for it by not explaining myself more thoroughly. Hopefully people will stop bashing me now. lol
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Old November 9th, 2009, 08:33 PM
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Default Re: why does tangiers from the retailers cost so much more

I dont think people were bashing you. I think people are jsut having a discussion. lol
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Last edited by Hayter; November 9th, 2009 at 08:38 PM.
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