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why the major price difference?

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  #1  
Old March 19th, 2010, 06:49 PM
zeoalex
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Default why the major price difference?

I just had a chance to shop in a local store the other day when visiting family in new jersey (major middle eastern population in clifton, and one hookah only shop, and a bunch of other shops with hookahs in the windows), and noticed that the prices were way lower in store than online, and the tax was maybe a buck or two a $20 order. they had nak for 6.99 nak mizo for 7.99 and AF for 10 (IIRC, didn't buy any) and SB for around 15. My question is why are the prices in a brick and mortar store so much less expensive that online? I didn't get a shot to look at the prices on the KM's in the shop, but i would imagine they're less expensive that online. Why does the hookah industry not follow most other industries where online is WAY less expensive than in store? It makes no sense that the product is more expensive then shipping is added on top. I would almost rather drive the 40 minutes to clifton to get my shopping done.
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  #2  
Old March 19th, 2010, 06:54 PM
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Default Re: why the major price difference?

Speculation:
1 Expensive to set up the website
2 Don't get all the money paid to the website (charge to process orders from a third party)
3 Less hassle (Don't have to ship the boxes)
4 Try to help out their fellow friends that live around them and share their culture
5 Shipping is not an exact science, some cost more, so the prices are artificially inflated for the case when it costs more to ship
6 Packing it isn't instant to ship an item and you have to buy the items that you are going to pack with
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  #3  
Old March 19th, 2010, 07:00 PM
zeoalex
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Default Re: why the major price difference?

the points you give are good. with that said, if you look at a lot of other industries, the reason that online prices are so much lower is because the online vendors buy a greater volume of product thus bringing the price per piece down, most smaller shops can't afford to keep that sort of stock because it won't sell quick enough. Shipping should not have any sort of effect on the price of the product itself. if the shipping needs to be inflated, then do that on the shipping costs. Boxes and packing supplies cost almost nothing, for a while I worked for a shipping department and a single box is maybe a dollar, two if it's a huge one...and packing peanuts are also very very inexpensive.
the point you bring up with the costs of a website is moot because look at the price of a website and what it costs to run it and the cart services, and then compare that the overhead of a B&M store, and the fees they deal with in terms of card services.
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  #4  
Old March 19th, 2010, 08:06 PM
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Default Re: why the major price difference?

All that is true for a large online vendor but from what I gathered it wasn't a well known website. With that said the website has a large fixed component and they have to have large volume to bring that cost down and it didn't appear to have large volume, thus bringing the price up
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  #5  
Old March 19th, 2010, 08:09 PM
zeoalex
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Default Re: why the major price difference?

true, but i'd figure that the volume of a bigger site (lets say for H-S, a pretty major vendor from what I would assume) would have a higher volume than a smaller B&M shop, plus the site fees would be minimal compared to rent for a halfway decent shop location.
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  #6  
Old March 19th, 2010, 08:09 PM
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Default Re: why the major price difference?

I imagine the local guys have much fiercer competition. I can go to a dozen places within five miles of my house. I stick with three of them because of the prices and the service. Even though I could order online, I like the personal interaction, and have gotten to know my favorite local vendors quite well.
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  #7  
Old March 19th, 2010, 08:20 PM
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Default Re: why the major price difference?

I don't know of any local dealers that are worth anything here, hookah lounges are competitive but for buying things there isn't anything worthwhile I have discovered
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  #8  
Old March 19th, 2010, 08:48 PM
zeoalex
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Default Re: why the major price difference?

well honestly even if the stuff at a local shop was a couple bucks more, i'd rather go there for the support, and when you get to know a vendor well enough it definitely helps
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  #9  
Old March 19th, 2010, 09:13 PM
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Default Re: why the major price difference?

Well, the main reason is this: Most of their customers are from the Middle East and they know the actual price of these items becasue of where they grew up or lived. For example they were used to pay $2-3 for 250g Nakhla or $5 for Alfakher so no way they will pay 11 or 15 let alone $25 for Starbuzz and the same go for the pipes. In my opinion online stores are aimed mainly at the American consumer and they use marketing or whatever to overcharge you. So if there is a local shop near by then you are better off buying from them and save yourself the high prices and the shipping cost not to mention you can physically touch and smell the item before you decide.
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  #10  
Old March 19th, 2010, 09:21 PM
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Default Re: why the major price difference?

Would anyone know of a local shop owned by a middle easterner in Tampa, Gainesville, or Orlando then?
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  #11  
Old March 19th, 2010, 09:24 PM
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Default Re: why the major price difference?

Cause hookah paradise in Clifton rocks!
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  #12  
Old March 19th, 2010, 09:38 PM
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Default Re: why the major price difference?

Quote:
Originally Posted by chewymatingcall View Post
Would anyone know of a local shop owned by a middle easterner in Tampa, Gainesville, or Orlando then?
Every major US city has some Middle Eastern population, some large and some not so large hence a ME neighborhood. Thats where I would start. A quick Google search should yield a few places so you can strat there.
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  #13  
Old March 19th, 2010, 09:56 PM
zeoalex
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Default Re: why the major price difference?

Quote:
Originally Posted by iMaD View Post
Well, the main reason is this: Most of their customers are from the Middle East and they know the actual price of these items becasue of where they grew up or lived. For example they were used to pay $2-3 for 250g Nakhla or $5 for Alfakher so no way they will pay 11 or 15 let alone $25 for Starbuzz and the same go for the pipes. In my opinion online stores are aimed mainly at the American consumer and they use marketing or whatever to overcharge you. So if there is a local shop near by then you are better off buying from them and save yourself the high prices and the shipping cost not to mention you can physically touch and smell the item before you decide.
that's a very good point, never thought about that one. sad part is the closest ME neighborhoods are in NYC or NJ

Quote:
Originally Posted by ariberns View Post
Cause hookah paradise in Clifton rocks!
yes it does! i will be going back there when I can, way easier than ordering online! i don't think they have an AF solid though...otherwise I'd get it there lol
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  #14  
Old March 19th, 2010, 10:12 PM
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Default Re: why the major price difference?

Quote:
Originally Posted by zeoalex View Post
that's a very good point, never thought about that one. sad part is the closest ME neighborhoods are in NYC or NJ



yes it does! i will be going back there when I can, way easier than ordering online! i don't think they have an AF solid though...otherwise I'd get it there lol
where do you live? What's the closest "Big" city? every city has a Middeastern neighborhood so try some google search and you will come up with something.
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  #15  
Old March 19th, 2010, 10:16 PM
zeoalex
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Default Re: why the major price difference?

i'm in westchester, NY, about an hour outside of NYC, so that's the closest, but an hour in and an hour back can be a lot for a trip to get hookah stuff, clifton is actually a little clsoer, but is still a little ways for just shisha.
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  #16  
Old March 19th, 2010, 10:26 PM
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Default Re: why the major price difference?

i'm in westchester, NY

Hehehehe...Bill Clinton neighborhood I live about 45 min from Chicago and we have a couple of store close by but they are rippoffs so it is worth it for me to drive to the city and stock up. I only do it every 3 months or so and on the weekend so traffic is not an issue. Just don't drive there for a 50g then it becomes VERY expensive
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  #17  
Old March 19th, 2010, 10:58 PM
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Default Re: why the major price difference?

haha yeah, i'm about 20 minutes from the clinton's...maybe a little more? I'll go to NYC or clifton when i'm home to stock up...but with the frequency that i'm home, and the time i'd have to invest to stock up when i'm supposed to be working or skiing make it difficult (during winter break i was home for a while, but worked every day during the week and was skiing every weekend...so no time!)...this summer will be different though
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  #18  
Old March 20th, 2010, 08:50 AM
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Default Re: why the major price difference?

Maybe you an good old Bill can cet together for a hookah sometimes Oh, wait he is a CIGAR man
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  #19  
Old March 20th, 2010, 12:23 PM
zeoalex
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Default Re: why the major price difference?

it took me a second to realize what you were saying LOL. that would be hysterical.
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  #20  
Old March 20th, 2010, 04:07 PM
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Default Re: why the major price difference?

Quote:
Originally Posted by chewymatingcall View Post
Speculation:
1 Expensive to set up the website
2 Don't get all the money paid to the website (charge to process orders from a third party)
3 Less hassle (Don't have to ship the boxes)
4 Try to help out their fellow friends that live around them and share their culture
5 Shipping is not an exact science, some cost more, so the prices are artificially inflated for the case when it costs more to ship
6 Packing it isn't instant to ship an item and you have to buy the items that you are going to pack with
1. Expensive to set up stock in a store and hire workers
3. You got to stock the store and make sure everything is looking perfect
5. Customer covers the shipping, so why does it matter about the price of the initial product being higher? (ex: Starbuzz being $22 online and paying money to ship it. SB is $17 in store and no shipping)

So I wonder, why is stuff more expensive online?
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  #21  
Old March 20th, 2010, 04:22 PM
zeoalex
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Default Re: why the major price difference?

Quote:
Originally Posted by Jride View Post
1. Expensive to set up stock in a store and hire workers
3. You got to stock the store and make sure everything is looking perfect
5. Customer covers the shipping, so why does it matter about the price of the initial product being higher? (ex: Starbuzz being $22 online and paying money to ship it. SB is $17 in store and no shipping)

So I wonder, why is stuff more expensive online?
and don't forget, the overhead for a brick and mortar store is WAY higher than a wesbsite. unless you have to have a huge warehouse, then it may be a little different, but a warehouse space is less expensive than a storefront in even a halfway decent location.

i think the point of the people used to a lower price is very interesting, and makes a lot of sense...i think another point is that there are a lot of people who don't have a local shop to go to, so the online vendors have their nuts in a vice for stuff...they can charge what they want.
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  #22  
Old March 20th, 2010, 04:29 PM
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Default Re: why the major price difference?

Some stores around my area are MORE expensive than the places I order from online. I once went into my local shop (Who boast the largest selection of hookah tobacco in the country, but yet they don't carry Desi Murli, Nakhla, Al Fakher...) and they wanted 200 bucks for an AF Large Light. I looked them up on my phone and showed them it was only 85 on HJ's site and they said "Well, then go order it there then." Yeah, but I will bet my bottom dollar that some guy went in there and dropped the dime, got home and went "WTS?"
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  #23  
Old March 20th, 2010, 04:43 PM
zeoalex
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Default Re: why the major price difference?

wow, now is that in a major middle eastern community? that's crazy...200 for a large light
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  #24  
Old March 20th, 2010, 04:43 PM
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Default Re: why the major price difference?

You would think the prices would be lower online then they would be in store because look at all the online vendors and competition.

Just dont understand it.

mind=blown
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  #25  
Old March 20th, 2010, 04:52 PM
zeoalex
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Default Re: why the major price difference?

that's exactly right Jride. I'm looking at the paintball industry (cause it's a big thing for me), and the prices online are often a hundred...two hundred less online for a high end marker than in any of the local stores around me, and that's because they get a much higher volume than any of the local stores, which brings down the costs per piece of product, which is what i thought most industries would follow
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