The product was initially launched at the heavily subsided price of €20.00 for 35 sticks. A per stick cost to the consumer of 57.14cent, which, when compared to the price per stick of the 20’s pack of 62.50 cent represented a substantial saving to the value-conscious smoker, with retailers foregoing almost .5% in margin.
Of course, your customer buying the Big Box 35 was frequenting the shop much less frequently. The 20-cigarettes a- day-person buys 30 packs in a 30-day month – 30 units. (600 sticks).
The 20 cigarettes-a-day-person buying the 35 pack will only come to a shop to buy cigarettes 17 days (595 sticks).
Big Boxes depress your potential to sell secondary and ancillary (and substantially more profitable) products – don’t be in any hurry to increase your overall range of tobacco offerings – it costs you money. (See Announcement)
Don’t forget that the Cigarette and Tobacco price list is always available on the CSNA website.