Hard on the heels of Market leader JTI, Imperial Tobacco foreshortened their customary 4 week advance notice to their customers, and in a letter to the trade dated March 1st, informed customers that last day for ordering at the old price is 12pm on Thursday 9th, any orders placed after that will be at the new (increased ) price, although as you are aware, as manufacturers are the sole determinator of the retail price, you are obliged not to increase your selling price until Monday 13th.
Such is their comfort in their State-appointed position, they were able to Headline their communication as “IMPORTANT CHANGES TO RECOMMENDED SELLING PRICES”, rather than noting the information as an increase in the wholesale price.
This is how margins are fixed, this is how a company elects to delay (and in some cases, withhold) increases in products they seek to gain an advantage from by holding the Selling Price of packs at a consumer- friendly price point while at the same time, artificially suppressing the margin vis-à-vis the 20’s equivalent.
If a company wants to hold a Big Box at an advantageous price point, why not do so without suppressing their customers margin? All they have to do is reduce the cost of the outer to reflect the Trade margin enjoyed by the 20’s outer. SIMPLE.
All new Selling prices will be on our website for members to access.