Profit on a pack of cigarettes

LuvinLunch

Hey,

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

LuvinLunch

murpho999

On Henry St it's about 100%

Rabies

prob feck all to the retailer

The_Pretender

Most of it is going to the government.

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

Kimbot

http://www.itmac.ie/media-centre/facts-figures/who-gets-what/

The Dagda

For who?

The manufacturers?

The distributors?

The wholesalers?

The retailers?

The undertakers?

The government?

Or all of the above?

Kimbot

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

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.

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.

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.

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.

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.

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.

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

BillyMitchel

About three fiddy

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

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.

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?

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%

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.

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.

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.

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.

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.

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

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:

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!

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.

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.

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?

rubadub

murpho999 wrote: »

On Henry St it's about 100%

I can't remember all the figures but I remember thinking they made very little.

I had mates working in the canaries, getting people into bars, they knew others who would work doing the same, save up cash, buy smokes smuggle back to home and sell to the street dealers here.

This was about 15-17 years ago, for some reason shops are poorly policed over there, crackheads would steal 200 cartons from supermarkets, little protection as they are cheap. They would sell to these workers who brought them back.

I think a carton was £10-12 from the thieves & €15-16 to the moore street guys. I think they sold on moore street for £2 a 20 pack, so maybe 50p profit per pack. You could buy cheaper brands in shops but they were harder to shift so they stuck with thieves.

Smuggling dangerous counterfeit tobacco is still viewed as a fairly harmless crime here, so very enticing. While you hear of cannabis smugglers "devastating families & society", its like something off southpark.

I knew guys in newsagents here saying they only had them to get customers in.

Cee-Jay-Cee

I worked in an off licence years ago we done a stock check every month but never counted the cigarettes and when I asked why, I was told that the profit was so small on a packet that it wasn't worth including them in a stock take. They sold them purely as a convenience for people buying alcohol but made very little on them.

The Dagda

The Dagda wrote: »

The undertakers?

Eh? Non smokers get buried twice or what?

Rabies

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 - 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.

How does it work with bars and clubs that sell ciggs?

I know cigg companies pay bars over here to install machines or sell packets from the back of the bar. Usually its a $12k a year for an average size bar from what I hear, its paid monthly too.

Stavros Murphy

Grandeeod wrote: »

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.

I got that far, was consumed by jealousy and the rest was a green-eyed blur. You lucky sucker.

Stavros Murphy

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 a great Lad! You should go into Politics. There's loads of other people just like you in that game. You can ban other stuff too, like people walking without a hard-hat. Make safety goggles compulsory, stuff like that. You can bristle with righteous indignation at people drinking alcohol(I'm sure you don't) and tax the feck out of nail-polish remover due to the harmful effects of the fumes. We need more people like you

















to emigrate.

cloud493

78% tax :eek: daylight robbery.

sawdoubters

in the Philippians a pack of Marlboro are 15 cents

the_syco

LuvinLunch wrote: »

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!

It'll just mean the smokers will go en masse to certain entry points to smoke. Many will be reminded of their post-primary days, and find places to smoke on campus. It's a large campus, so there'll be a few chubby holes that people will be able to smoke.

Roger Hassenforder

Ive a win-win idea:
if all the smokers could **** off to some place, i dunno, like the Aran Islands, with the help of some new bye laws, allow you to smoke as much as you want, where you want.
You could also set VAT and tax rates that would pay for a health service to provide the appropriate care (without clogging up our health services for proper patients), so when youre lying in your hospital bed, aged 60, with your gangrenous legs rotting off you, you can think of how you stuck it to the man...

conorhal

Roger Hassenforder wrote: »

Ive a win-win idea:
if all the smokers could **** off to some place, i dunno, like the Aran Islands, with the help of some new bye laws, allow you to smoke as much as you want, where you want.
You could also set VAT and tax rates that would pay for a health service to provide the appropriate care (without clogging up our health services for proper patients), so when youre lying in your hospital bed, aged 60, with your gangrenous legs rotting off you, you can think of how you stuck it to the man...

Jesus the bang of sanctimony off this post is so strong that it's pushed me straight to a 'goodwin', given that it barely stops short of adding gas ovens to that island scenerio and a 'if they like smoke so much they may as well go up in it, goodenoughfor'em!'

conorhal

cloud493 wrote: »

78% tax :eek: daylight robbery.

And if you tolerate this, then your pint of beer will be next....

EuropeanSon

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!

Oh dear, you're one of those.

This is one resolution I'll be voting on, and I'll be voting no, as a non smoker who doesn't want a quarter (rough estimate) of the college population to be treated like criminals just because some people are mildly inconvenienced by the smell of smoke.

oceanman

Deleted User wrote: »

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

I know one or two of those 'idiots' on moore street and I can tell you they do quite nicely selling cigarettes!

ArmaniJeanss

LuvinLunch wrote: »

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!

Sure if you need anymore help with your project give us a shout and we'll see what we can do.

WilyCoyote

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!

Why on earth do that? I mean Trinity already benefits from government dosh ...... it's like biting the hand that feeds etc.

Could ye not ban something else instead. Like farts. I find these repugnant (except my own, of course). This whole PC thing is gone crazy. I wonder what an old alumni like Oliver Goldsmith would have thought?

Next you'll be saying is that the mild euphoric feeling that you get while engaged in a long philosophic discussion with a bunch of Ming adherents is dangerous to the nostrils.

Roll a big one, light up and chill!

rubadub

EuropeanSon wrote: »

just because some people are mildly inconvenienced by the smell of smoke.

"just?" do you really think this is the sole reason people want it banned?!?

The_Pretender

rubadub wrote: »

"just?" do you really think this is the sole reason people want it banned?!?

I'd imagine it's the main reason, so they don't have to walk through clouds of smoke going in and out of buildings. Unless it's the health of the smokers they're concerned about as well?

the_syco

Roger Hassenforder wrote: »

if all the smokers could **** off to some place, i dunno, like the Aran Islands, with the help of some new bye laws, allow you to smoke as much as you want, where you want.

Ireland would end up with a lot less doctors, and a couple of high stress jobs shall find themselves wanting to be filled. And before someone chimes in that there are thousands unemployed, most wouldn't be qualified for them, and those that are know that they're stressful jobs...

runawaybishop

The_Pretender wrote: »

I'd imagine it's the main reason, so they don't have to walk through clouds of smoke going in and out of buildings. Unless it's the health of the smokers they're concerned about as well?

Right, they want to be able to inhale the clean air of the city.