Sonthert Posted August 20, 2009 Share Posted August 20, 2009 Company A, who is a trade partner with Brand X, sells a number of brands, including Brand X and Tangiers. They view Tangiers as a threat to their market share and whatnot. So they tie up large amounts of Tangiers, buying it and and selling it for 20% above cost. To Tangiers, initially, this isn't a problem, because they are still pulling their prices. Tangiers other retailers see sales plummet (since they are selling it at a much higher price than Company A). They get annoyed and believe Tangiers sales are flagging and chop orders on Tangiers. Tangiers still doesn't see the writing on the wall and keep selling to Company A. Sales continue to fall as Tangiers sales increasingly go through Company A. Maybe Tangiers sees A's sales as positive and lower the wholesale price to Company A since they are moving so much product. At the same time, Company A, is using the success of Tangiers sales to push their product and try to steal customers from Tangiers. Perhaps customers stop buying Tangiers and buy Brand X. Anyways, Tangiers retailers are disgusted and drop the line. When Company A sees that they are the only ones selling Tangiers, they then tell Tangiers to go fly a kite. Tangiers says "I don't need you guys anyways." But finds a chilly reception because the other retailers believe Tangiers won't move units. Tangiers is fucked. This is as opposed to burning a brand. Burning a brand is where a company badmouths another brand to sell theirs. It may take the form of buying Tangiers (maybe even getting the suckers at Tangiers to sell it on a consignment basis) and then complaining it doesn;t sell because they are trying not to sell it. A customer walks in and wants to buy tobacco. The salesman says you could buy Brand X, its the best of all. Tangiers is sitting there. The custoemr asks "what about this Tangiers?" "Its terrible, don't buy it. I don't know why they bought that stuff to sell here." Then the company complains that it doesn't sell and start telling everybody else in the industry that it didn;t move, the customers hated it, complained about it endlessly. A form of this is where operatives of Brand X go into a store, and complain that they bought Tangiers and it was awful. I see that dirty trick a lot. One brand being the biggest offender...Another one is where people who are friends of Brand X go into stores that don't sell Brand X and say they want to buy Brand X and/or they don't like Tangiers. Once the store orders Brand X, they never show up to buy it, of course. Another shifty trick is a vendor or salesperson walks into a store and says "I sell the greatest hookahs there are." They have already cased the store (and they do it for tobacco, too...) and determined what the markups are. If they see a tin of Starbuzz for $22 at Store B, they know Store B is using a 100% markup. If the tin of Starbuzz is $33 at Store C, they know Store C is marking up 200% (or any type of markup in between, based on the prices of known items). They know they want the store to sell their hookahs for $60. So they offer them to store B for $30 (with a 100% markup), which prices them at $60. At store C, they wholesale it at $20, knowing the store will mark it and sell it for $60 again. This is why there is a huge drive for cheap junky hookahs to be imported...if a hookah wholesales at $60, the wholeseller has to throw it out at around $75. Which is fine for the store with the 200% markups. They will sell it at $225. If they hit a store with a 100% markup, they would have to sell it at $113 or so to protect their retail price...Store B is a lot less likely to buy them...they're too expensive. Also, there is a lot more obvious difference between a hookah with a proper wholesale price of $75 and one with a proper wholesale price of $113 than there is between a hookah priced at $20 and one priced at $40. Buyers and managers tend to be more educated and are more likely to tell the seller to shove it when good merchandise is involved. Some of the cheap pipes out there literally are being sold for 500% markups. The other ramification of this last trick is that its far more likely that a 200% markup store will do better than a 100% markup store...since the 100% markup store is paying more for their product and making less money. So, this would create a trend (if a sufficiently large percentage of wholesale agents used this trick in relation to the sales of the store). It would tend to squash the stores that have lower markups, more squashing, the lower the markups, and make the high markup stores thrive. Why does this matter? If there aren't any low-priced stores left, you will have to pay 200% markups. From my experience, some guys don't play these games at all. They're square shooters. Some guys play these games if they people they're dealing with do, but play square if the other guys does. Some guys are just shifty all the time.Thats why Tangiers sells tobacco unlike any other hookah tobacco. I have a set of policies in place to protect low-markup retailers, protect their margins and only sell to companies that really want to sell Tangiers. I don't consign or cut deals based on volume and don't work with distributors. All the retailers compete on an even playing field.It would be hard for somebody to burn the price on Tangiers. The companies that sell Tangiers know that nobody's getting a better price and they are secure in their margins. As such, I keep an eye out to protect their margins. I support them more than most manufacturers because I don't have distributors pimping (or burning) the name of Tangiers. That's why I'm curious. Link to comment Share on other sites More sharing options...
Arcane Posted August 20, 2009 Share Posted August 20, 2009 no idea what half of that said, but the last part garnered a lot more respect from me. Eric. you rock. hard.can't wait to hang out with you. Link to comment Share on other sites More sharing options...
r1v3th3ad Posted August 20, 2009 Author Share Posted August 20, 2009 I can tell you that the place its coming from isn't using any of these tactics and actually has it retail around $15 a 250g...and you do know this place personally Link to comment Share on other sites More sharing options...
Arcane Posted August 20, 2009 Share Posted August 20, 2009 maybe the company itself is taking a profit hit...in order to provide the tobacco to this reviewer. possibly in hopes of getting a good review and thus bringing in more sales? Link to comment Share on other sites More sharing options...
r1v3th3ad Posted August 20, 2009 Author Share Posted August 20, 2009 QUOTE (Arcane @ Aug 20 2009, 12:58 PM) <{POST_SNAPBACK}>maybe the company itself is taking a profit hit...in order to provide the tobacco to this reviewer. possibly in hopes of getting a good review and thus bringing in more sales?I think this is the case...I'll ask him how he's getting it cheaper than wholesale when I talk to him next in the next week or so...I think its plainly that he gives them viable reviews(good and bad reviews of shisha, not just spiffying everything up) and they are doing him these favors in return Link to comment Share on other sites More sharing options...
r1v3th3ad Posted August 20, 2009 Author Share Posted August 20, 2009 just got the word from my buddy that this is one time only this cheap...he is gettin it that cheap because a favor was owed to himhe wishes for me to keep him and the company a secret Link to comment Share on other sites More sharing options...
joytron Posted August 20, 2009 Share Posted August 20, 2009 okay, im sure you all guessed it the guy who gets the super awesome deal on all the tangiers is me Link to comment Share on other sites More sharing options...
delSol_si Posted August 20, 2009 Share Posted August 20, 2009 QUOTE (Arcane @ Aug 20 2009, 04:26 AM) <{POST_SNAPBACK}>the last part garnered a lot more respect from me. Eric. you rock. hard.can't wait to hang out with you.+1 in a major way.I am guessing that you have a specific, tight range of prices that you allow the vendors to charge then? I have notice all of them are generally the same, except one has it a dollar cheaper... Link to comment Share on other sites More sharing options...
Sonthert Posted August 21, 2009 Share Posted August 21, 2009 Nah. I don't have a MSRP. If your wholesale prices are set in stone, you don't need to. Some people drop their price below around $10, I make a call. Thats about it. Link to comment Share on other sites More sharing options...
Amn_sinclair Posted August 21, 2009 Share Posted August 21, 2009 hey eric just curious if u sell to any european vendors? I was thinking maybe it wouldnt take so long for my stuff in the mail if i bought it from a european vendor and had it sent to my home rather then an american vendor and had it sent via apo Link to comment Share on other sites More sharing options...
Sonthert Posted August 22, 2009 Share Posted August 22, 2009 Not really. European vendors don't like buying and paying the duties and taxes on the tobacco. They're uber-high. Link to comment Share on other sites More sharing options...
Amn_sinclair Posted August 22, 2009 Share Posted August 22, 2009 damn that sucks oh well i guess anytime i want more tangiers ill just have to wait up to a month for it in the mail Link to comment Share on other sites More sharing options...
r1v3th3ad Posted August 24, 2009 Author Share Posted August 24, 2009 well, the Khalil Mamon came in today...surpised to see that as the stamp on the tray...always saw it as Khalil Mamoontested it out and smokes great...thing is a monster, bigger than my MZweakens the flavor a little, I think its the distance the smoke is traveling, but dunno...this is awesomeheres some picshttp://img12.imageshack.us/gal.php?g=dscn0157b.jpg Link to comment Share on other sites More sharing options...
ilikemyusername Posted August 25, 2009 Share Posted August 25, 2009 QUOTE (fcbayern @ Aug 19 2009, 11:47 AM) <{POST_SNAPBACK}>What exactly qualifies someone as a "PROFESSIONAL" shisha reviewer?a professional is someone who is compensated for thier services, typically monitarily. Link to comment Share on other sites More sharing options...
r1v3th3ad Posted September 23, 2009 Author Share Posted September 23, 2009 so...four kilos just arrived...I'll post pics when I return from class Link to comment Share on other sites More sharing options...
Webbles Posted September 23, 2009 Share Posted September 23, 2009 QUOTE (r1v3th3ad @ Sep 23 2009, 10:06 AM) <{POST_SNAPBACK}>so...four kilos just arrived...I'll post pics when I return from classOhhh tangiers porn! I love my tobacco thick, heavy and juicy! Link to comment Share on other sites More sharing options...
NIGHTS OF BAGHDAD Posted September 23, 2009 Share Posted September 23, 2009 QUOTE (Webbles @ Sep 23 2009, 01:42 PM) <{POST_SNAPBACK}>QUOTE (r1v3th3ad @ Sep 23 2009, 10:06 AM) <{POST_SNAPBACK}>so...four kilos just arrived...I'll post pics when I return from classOhhh tangiers porn! I love my tobacco thick, heavy and juicy!you just described my date...lol Link to comment Share on other sites More sharing options...
r1v3th3ad Posted September 23, 2009 Author Share Posted September 23, 2009 blueberry, horchata, k-peach, and static starlight Link to comment Share on other sites More sharing options...
NIGHTS OF BAGHDAD Posted September 23, 2009 Share Posted September 23, 2009 QUOTE (r1v3th3ad @ Sep 23 2009, 04:57 PM) <{POST_SNAPBACK}> blueberry, horchata, k-peach, and static starlighthey man when can i come over...lol Link to comment Share on other sites More sharing options...
indian_villager Posted September 24, 2009 Share Posted September 24, 2009 QUOTE (r1v3th3ad @ Sep 23 2009, 04:57 PM) <{POST_SNAPBACK}> blueberry, horchata, k-peach, and static starlightK-Peach is sex. You enjoy it sir! Link to comment Share on other sites More sharing options...
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