Expert: James Yee - 8/18/2007

Question
James how much would you say was an acceptable dollar amount for a box of cuban cigars to very from standard. So if the LCDH lists a cigar box @ 300.00 us and someone else is selling the same one @ 250.00 is that enough to be concerned?

Answer
Jim,

This may sound complicated but I’ll try my best to explain it so bear with me.

A slight dip in prices doesn’t necessarily mean that one business is definitely selling fakes because the business with the lower price could simply be having a sale.  You should be suspicious if the regular price – at an UNAUTHORIZED (or questionable) retailer – is extremely low when compared to an authorized retailer in the same area.  For example, if a legitimate store (such as LCDH) is selling a box of cigars for $400 USD and another store in town (unauthorized Habanos SA retailer) is selling the same box for $250-$300 (their regular price), then you should be concerned.  

However, keep in mind that this only applies to cigar stores in the same province/state/region because of the applicable tobacco taxes.  For example, because tobacco taxes vary between provinces in Canada, a box of Cuban cigars that costs $500 CDN in Ontario may cost slightly more or less in another province such as British Columbia or Quebec.  Even LCDH prices will vary within Canada because the shops are each in a different province and tobacco and sales tax are different in each province.  Also, if you visit a LCDH shop in Canada and see a box of cigars for about $400 USD and then see the same box of cigars on a European website for $300 USD, it doesn’t necessarily mean that the website is selling fakes.  Instead the European website may just be paying less tobacco taxes for their cigars.

When comparing prices, be sure to compare retailers in the same country, province/state or region.

Hopes this answers your question.

Regards,
James