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Profit on a pack of cigarettes

  • 23-01-2014 10:42AM
    #1
    Registered Users, Registered Users 2 Posts: 22


    Hey,

    Does anyone know how much profit there is on a pack of cigs please?

    LuvinLunch


«1

Comments

  • Registered Users, Registered Users 2 Posts: 28,734 ✭✭✭✭murpho999


    On Henry St it's about 100%


  • Registered Users, Registered Users 2 Posts: 15,257 ✭✭✭✭Rabies


    prob feck all to the retailer


  • Registered Users, Registered Users 2 Posts: 594 ✭✭✭The_Pretender


    Most of it is going to the government.


  • Registered Users, Registered Users 2 Posts: 494 ✭✭vinnie13


    LuvinLunch wrote: »
    Hey,

    Does anyone know how much profit there is on a pack of cigs please?

    LuvinLunch

    I don't know exactly but 2euro at the most
    Probably around 1.50


  • Moderators, Computer Games Moderators, Social & Fun Moderators Posts: 18,856 Mod ✭✭✭✭Kimbot




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  • Closed Accounts Posts: 1,345 ✭✭✭The Dagda


    For who?

    The manufacturers?

    The distributors?

    The wholesalers?

    The retailers?

    The undertakers?

    The government?

    Or all of the above?


  • Moderators, Computer Games Moderators, Social & Fun Moderators Posts: 18,856 Mod ✭✭✭✭Kimbot


    78.1% goes to the Government in the form of taxes and the remaining is split between the manufacturer etc.


  • Registered Users, Registered Users 2 Posts: 1,489 ✭✭✭Irish Halo


    According to Irish Tobacco Manufacturers' Advisory Committee:
    http://www.itmac.ie/wp-content/uploads/2013/07/Homepage-Who-Gets-What.png

    78.1% = Tax

    21.9% = Cost to retailer + his profit ~€2.06

    So at most they make €2 but guess they pay at least €1 for every pack.


  • Registered Users, Registered Users 2 Posts: 20,763 ✭✭✭✭kneemos


    You have to factor in the cost of the flight to Spain,extra suitcases and the cost of the embarrassment when the customs officials see you coming.


  • Registered Users, Registered Users 2 Posts: 15,257 ✭✭✭✭Rabies


    The Dagda wrote: »
    For who?

    The manufacturers?

    The distributors?

    The wholesalers?

    The retailers?

    The undertakers?

    The government?

    Or all of the above?
    Would you like someone to spell it out or draw pictures?

    You can colour it in later. Don't worry about going outside the lines.


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  • Closed Accounts Posts: 1,345 ✭✭✭The Dagda


    Rabies wrote: »
    Would you like someone to spell it out or draw pictures?

    You can colour it in later. Don't worry about going outside the lines.

    Yeah, draw pics please hun. Ktnxbai.


  • Closed Accounts Posts: 4,180 ✭✭✭hfallada


    kneemos wrote: »
    You have to factor in the cost of the flight to Spain,extra suitcases and the cost of the embarrassment when the customs officials see you coming.

    I have never heard or seen anyone getting done for bringing in cigarettes into Dublin Airport. I have seen the flights off Eastern Europe getting their bags checked, but not the spainish ones. Its because you are allowed 800 from within in the EU http://www.revenue.ie/en/customs/leaflets/pn1878.html

    But some women from customs said they will take upto 3200 duty paid cigarettes from within in the EU.


  • Registered Users, Registered Users 2 Posts: 3,576 ✭✭✭pajor


    hfallada wrote: »
    I have never heard or seen anyone getting done for bringing in cigarettes into Dublin Airport. I have seen the flights off Eastern Europe getting their bags checked, but not the spainish ones. Its because you are allowed 800 from within in the EU http://www.revenue.ie/en/customs/leaflets/pn1878.html

    But some women from customs said they will take upto 3200 duty paid cigarettes from within in the EU.

    The Canary Islands are excluded from the EU though.. for some reason.

    I think my uncle (owns a shop in Kilkenny) said he gets between 7 and 11% for a pack of smokes.


  • Posts: 0 [Deleted User]


    You're not contemplating joining those idiots on Moore Street, are you?


  • Registered Users, Registered Users 2 Posts: 3,324 ✭✭✭BillyMitchel


    About three fiddy


  • Registered Users, Registered Users 2 Posts: 4,236 ✭✭✭Dannyboy83


    hfallada wrote: »
    I have never heard or seen anyone getting done for bringing in cigarettes into Dublin Airport. I have seen the flights off Eastern Europe getting their bags checked, but not the spainish ones. Its because you are allowed 800 from within in the EU http://www.revenue.ie/en/customs/leaflets/pn1878.html

    But some women from customs said they will take upto 3200 duty paid cigarettes from within in the EU.

    If you're ever on a flight back from Lithuania or Poland, you will see it.
    I've seen entire suitcases confiscated.

    I flew back to Cork from Vilnius last Monday 13th.
    There was a flight from France came in at the same time as us.

    Everyone coming from the French flight was allowed to cruise through the lane with no X-ray machine.
    Everyone coming off the Lithuanian flight was forced through the x-ray lane and if you broke off the Lithuanian queue to try go through the French queue, there was a security guard there checking passports and sending people back into the Lithuanian queue.

    So in future, buy your cigarettes in Eastern Europe, then drive to France and fly in from there:D


  • Registered Users, Registered Users 2 Posts: 22 LuvinLunch


    Thanks for the answers. I'm wondering if I was a shop keeper, how much profit would I make by selling one packet of cigarettes. Irish halo, you're my favourite although the rest of you did amuse me. Thanks again for the help.


  • Registered Users, Registered Users 2 Posts: 22 LuvinLunch


    Don't suppose there's a shop keeper who could tell me how much of the measly 2.09 that is shared between manufacturers and retailers actually goes to the retailer?


  • Registered Users, Registered Users 2 Posts: 33 Dinny76


    approx 9% of sale price ex vat.

    Say B&H sale price €9.5-23% vat =€7.72
    €7.72*0.09= €0.6948

    Not big money when you consider you must pay a bond to the supplier and also the cost of carrying stock

    You could get a vending type machine in meaning no bond or stock but margin will be 4%


  • Registered Users, Registered Users 2 Posts: 1,667 ✭✭✭Frynge


    I will post up some prices in a while. But be aware it is very small. We also add on a premium for the cigarettes we sell from the machines but not in the shop.


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  • Registered Users, Registered Users 2 Posts: 7,058 ✭✭✭conorhal


    jonny24ie wrote: »
    78.1% goes to the Government in the form of taxes and the remaining is split between the manufacturer etc.

    That's pretty shocking isn't it.

    I loathe 'lifestyle taxation hikes' in general because I tend to percieve them as either the petty meddling of your 'betters' who think that you need to be treated like a child, or as often as not, a thinly disguised, lazy and unscruplulous revenue generating excercise from people that the government percieve as easy targets from whom they can gouge a few quid from to top up their pensions.
    Come budget day you have Reilly at one end of the cabinet table muttering 'that'll teach em', and Noonan at the other end rubbing his hands in glee because he knows nobody really minds if you mug a smoker for a few quid.

    I don't care what product you are legally buying, if more then 50% of the cost of that product comes in taxes or charges then it is frankly immoral.


  • Registered Users, Registered Users 2 Posts: 3,023 ✭✭✭Fukuyama


    Used to work in retail.

    Shops make feck all per pack in comparison to the price. Around 30-50c depending on the brand - those stupid cigarettes aimed at women have a good margin of over 70c (Vogue I think they're called). If the shop has a machine behind the counter, then they don't actually own the cigarettes, the suppliers does, and they earn a per-pack commission.

    However, the amount of people that smoke is insane. I was genuinely surprised when I went into working in a shop just how much we sold. At least 15 packs an hour. So, that 50c a pack would pay for a good bulk of the wages of the person on the till. So, in one way, shops couldn't do without them.

    But if you get them from a guy and sell them yourself.... well... you could make a mint.

    A lot of people switched to rolling tobacco recently, which don't go in the machines. Those pouches actually have a higher margin on them at retail price. For a 25g pouch of Amber Leaf we were making over a euro. But, people generally roll thinner cigarettes with them and buy less. However, they also buy Rizlas and filters which again have a high margin. We were selling the skins for 40c a pack (compared to the local competition who were charging 80c!!) in order to get the customers in the door. Once in, they'd buy their tobaccos as well along with the milk, bread etc... It's amazing how smokers will go out of their way to save an extra 40c and give their custom to a shop that isn't ripping them off.


  • Registered Users, Registered Users 2 Posts: 12,318 ✭✭✭✭Grandeeod


    hfallada wrote: »
    I have never heard or seen anyone getting done for bringing in cigarettes into Dublin Airport. I have seen the flights off Eastern Europe getting their bags checked, but not the spainish ones. Its because you are allowed 800 from within in the EU http://www.revenue.ie/en/customs/leaflets/pn1878.html

    But some women from customs said they will take upto 3200 duty paid cigarettes from within in the EU.

    I live in the Canary Islands and travel back to Dublin regularly. On my last three visits I only had hand luggage. At customs they ask what flight I came off and then search my bag. You can buy 200 cigs out here for as low as 15 euro and it is a very well known destination for smuggling tobacco back into Ireland. Parts of eastern Europe are the same.


  • Registered Users, Registered Users 2 Posts: 7,058 ✭✭✭conorhal


    Dean0088 wrote: »
    Used to work in retail.

    Shops make feck all per pack in comparison to the price. Around 30-50c depending on the brand. If the shop has a machine behind the counter, then they don't actually own the cigarettes, the suppliers does, and they earn a per-pack commission.

    However, the amount of people that smoke is insane. I was genuinely surprised when I went into working in a shop just how much we sold. At least 15 packs an hour. So, that 50c a pack would pay for a good bulk of the wages of the person on the till. So, in one way, shops couldn't do without them.

    But if you get them from a guy and sell them yourself.... well... you could make a mint.

    Well that would depend on where the shop is.
    I know a couple of retailers that will tell you they make nothing of cigarettes, it fact they see them as a potentially expensive liability. One retailer has been broken into on a couple of occasions by thieves that have smashed open and cleared out the machines.
    Often retailers sell them because they are a very low profit staple which gets customers to come into you shop several times a week, so they create footfall from customers who might buy something else also, and that's where the retailer might make a profit.


  • Closed Accounts Posts: 12,687 ✭✭✭✭Penny Tration


    hfallada wrote: »
    I have never heard or seen anyone getting done for bringing in cigarettes into Dublin Airport. I have seen the flights off Eastern Europe getting their bags checked, but not the spainish ones. Its because you are allowed 800 from within in the EU http://www.revenue.ie/en/customs/leaflets/pn1878.html

    But some women from customs said they will take upto 3200 duty paid cigarettes from within in the EU.

    Customs tried to seize cigarettes from me in Dublin when I came home from the seychelles in November. I brought 800 home, all the same brand, all for friends/family. Had a massive argument with the guy til hs colleague stepped in and told the guy I didn't bring enough to sell, so to let me go through. That was bloody embarrassing :o


  • Registered Users, Registered Users 2 Posts: 3,023 ✭✭✭Fukuyama


    conorhal wrote: »
    Well that would depend on where the shop is.
    I know a couple of retailers that will tell you they make nothing of cigarettes, it fact they see them as a potentially expensive liability. One retailer has been broken into on a couple of occasions by thieves that have smashed open and cleared out the machines.
    Often retailers sell them because they are a very low profit staple which gets customers to come into you shop several times a week, so they create footfall from customers who might buy something else also, and that's where the retailer might make a profit.

    Quite true - but the same can be said about many products that'd attract thieves.

    They definitely increase footfall. A lot of people have kind of a daily routine of walking to the shops for bread, milk, paper and a pack of smokes. In my experience the three biggest ways to increase your regular customers is to stock ciggs, have a coffee machine (and give a secret discounted rate to regular customers, builders/tradesmen in the area etc...) and never raise prices on the little things (matches, rizla, 2L milk etc...). And during the summer months stock dead cheap water and sell it for two bottles for a euro. You've never seen margin until you've seen margin on bottles of water. :eek:


  • Registered Users, Registered Users 2 Posts: 22 LuvinLunch


    Thanks a million for all your responses. Really helpful. Dinny76 that's exactly what I was looking for. ConorHal, hate to upset you but the reason I'm asking is because I'm working on a project to make Trinity College a tobacco free campus. That's no smoking inside or out. I'm sure you've something to say about that!


  • Registered Users, Registered Users 2 Posts: 22 LuvinLunch


    Dinny76, do you mind me asking how you know that information please? I can't find referenced information anywhere and I know I'll be asked to verify it.


  • Registered Users, Registered Users 2 Posts: 33 Dinny76


    My wife owns a shop. They are a foot fall driver and key for a small shops survival.
    Majority of buyers will at least buy chewing gum.


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  • Registered Users, Registered Users 2 Posts: 7,058 ✭✭✭conorhal


    LuvinLunch wrote: »
    Thanks a million for all your responses. Really helpful. Dinny76 that's exactly what I was looking for. ConorHal, hate to upset you but the reason I'm asking is because I'm working on a project to make Trinity College a tobacco free campus. That's no smoking inside or out. I'm sure you've something to say about that!

    You're damn right I do! :pac:

    As a smoker I was, like a majority of smokers, actually in favor of the smoking ban. I figured that it wasn't an unreasonable request by non-smokers that they not be subject to second hand smoke in an enclosed space.

    In hindsight, we should have fought against the ban tooth and nail, because we should have known that it would never stop there.
    When you give an inch to nanny statists they only smell blood, and drunk on their newfound power to tell everybody else exactly what they think they shoud do, they have become insatiable for more. I think the ability to order folk around gives them a right chubby.
    Suddenly it's not good enough that you don't have to breath it, now the mere sight of me offends you?
    This is the kind of creeping encroachment on an individual's personal liberties that I'd always imagined students would defend against? When did students start forming 'moral turpitude' committees to ostracize groups of people on the basis that they don't care for how they treat their own bodies (making their stance during the 80's and 90's on the ban on the sale of condoms on campus and the distribution of abortion information even more hypocritically laughable)

    There's something depressingly ironic about seeing students wearing legalize the weed T-Shirts on a slut march, chanting 'burn the witch!' when somebody suddenly lights up a fag.

    So tell me, when is Trinity getting itself a ducking stool?


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