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Last post 9 years ago by bassman45. 36 replies replies.
Opus X accounts
Ndill Offline
#1 Posted:
Joined: 07-29-2011
Posts: 1,525
From my understanding when a B&M gets an account (opus,LP,Tat,etc) they are required to sign a contract. These contracts state that they will buy so much of the product and have some other requirements also. I have heard that Opus/anejo accounts have stipulations that state that you must make the cigars open to the public and not sell privately. I have also heard things like you can only sell so many per customer (which I have seen), must sell at this price or only x% above, and no blatant selling to other companies for 3rd party selling. Anyone have any factual knowledge of this or the stipulations of the contracts?

The reason I ask is this. I live in a town of around 35k people. It is a university town and when all the kiddies are here add another 10kish. There are two places to get tobacco outside of just cigarette and chew. One is a place managed by a friend of mine. It mainly deals in RYO stuff, cigarette, chew, and a few pipe tobaccos. It also has a small walk in, which carries mostly lower end fuentes, bolivar, ashton, etc. Main sells are bundle cigars for the golfer and fisherman who just want something to smoke. My friend is a very well versed tobacco enthusiast. Not so up on the trends and the popular things that people are chasing but nonetheless knows a a lot about tobacco. There is another store that is a store that is more geared toward cigars and pipe tobacco sells. I have been in this store 3-4 times over the last few years. The walk in humidor is huge but only carries very low end lines like my friends store minus the bundle cigars. There are 5-6 feet of open shelve between each box and multiple empty boxes. Pipe tobacco is mainly bulk stuff that is along the lines of black cavendish, cherry cavendish, etc. A few blends of his own but no more that 7-8 total types of pipe baccy. Been in there a few times and just got the feeling from being around the owner that he isn't very friendly and kind of a tool. I have heard that he had a Opus account and it blew my mind. How the heck could he get that? I had also heard that he privately sells all the Opus/anejo he receives. Well, I went in today to look what pipe tobacco he has and stepped in the humidor. I noticed among the empty Montesino and partagas boxes three tins of Opus x (first time I have EVER seen any opus in there). When I walked out I asked the boy that was working (not the owner, he was not there) if he has an opus account and when are his shipments. The employee stated that he did have an account. I asked if he sells most of it privately and the employee replies "yes, most of the opus are sold and are never on the shelf for the public". I am not going to mess with the mans business but this sort of irritates me. Seems to be against everything I think cigars is about. My questions is, is this against the Opus contract?
rfenst Offline
#2 Posted:
Joined: 06-23-2007
Posts: 39,245
Very common that stores save their premium Fuentes for preferred customers or to charge above MSRP.
Ndill Offline
#3 Posted:
Joined: 07-29-2011
Posts: 1,525
rfenst wrote:
Very common that stores save their premium Fuentes for preferred customers or to charge above MSRP.

Wow that sucks. All the B&M that I have been to that actually had opus where priced about the same. Preferred customers is BS.....at least make some available to the public.
KingoftheCove Offline
#4 Posted:
Joined: 10-08-2011
Posts: 7,630
This is a grey, sticky area.
Many B&Ms have enough trouble simply trying to stay in business what with online sales taking over the industry.

They have a few services to offer, which can set them apart:
1) Smoking lounge
2) Taking care of preferred customers (my shpo protects me!!)
3) Instant gratification.....buy it, smoke it now.

So, if this guy is actually selling these to his preferred customers, at the proper price, well then more power to him. Would it be nice if he put some out for his occasional walkin clientele...............of course.
If on the other hand, he's selling them at OLH, or other similar venues, for inflated prices, or for resale, etc.............well, then he is a tool.
ZRX1200 Offline
#5 Posted:
Joined: 07-08-2007
Posts: 60,571
Does he have fake maduro double robusto Opus?
Abrignac Offline
#6 Posted:
Joined: 02-24-2012
Posts: 17,256
The shpo owner bears the risk of his business' success or failure as such that person owns that product and should be free to do what ever he wishes to do with it, within the confines of sensible regulation, including selling it for as much as he can in any forum available.

Since the OP regards a Fuente product, I'll take it a step further. Though I don't have a Fuente account, I've been told by more than one shpo owner that Fuente doesn't offer keystone pricing. As a result, the burden that shpo owners that are situated in high tobacco tax locals are at a highly competitive disadvantage from online shpo's in tax friendly locations. If true, the Fuente's aren't doing anything to help them.

One may even wonder about the recent removal of Fuente product from online auctions. Again, I've been told by a shpo owner that the closing prices on some auctions are lower than their account price.
Ndill Offline
#7 Posted:
Joined: 07-29-2011
Posts: 1,525
Abrignac wrote:
The shpo owner bears the risk of his business' success or failure as such that person owns that product and should be free to do what ever he wishes to do with it, within the confines of sensible regulation, including selling it for as much as he can in any forum available.

Since the OP regards a Fuente product, I'll take it a step further. Though I don't have a Fuente account, I've been told by more than one shpo owner that Fuente doesn't offer keystone pricing. As a result, the burden that shpo owners that are situated in high tobacco tax locals are at a highly competitive disadvantage from online shpo's in tax friendly locations. If true, the Fuente's aren't doing anything to help them.

One may even wonder about the recent removal of Fuente product from online auctions. Again, I've been told by a shpo owner that the closing prices on some auctions are lower than their account price.


I usually agree with what I have read you post in the past but I am not in total agreement with this. Yes, he does have the business and himself to look out for. At what point though is a service business become a self serving business while you have a limited and controlled product that people want?
Thunder.Gerbil Offline
#8 Posted:
Joined: 11-02-2006
Posts: 121,359
I don't think there is anything in the agreement that prevents the shop from choosing who to sell the cigars to. And when you look at a place like Casa Fuente, the whole sell at MSRP thing goes out the window.

There are a few B&M's by me who will have Opus Xes and Anjeos, to my knowledge, only one of them is an Opus account, and he's been an Opus account since basically the beginning (95 or 96 iirc). He sells them at MSRP, typically to preferred customers off of a waiting list. The non-account B&Ms, these are the a-holes who make Fuente and the rest of them look bad. Who knows where they are getting their inventory from, but you can find it in their humidor at insanely high prices. One jackhole was charging $96 for the tin of three robustos.
Ndill Offline
#9 Posted:
Joined: 07-29-2011
Posts: 1,525
KingoftheCove wrote:
This is a grey, sticky area.
Many B&Ms have enough trouble simply trying to stay in business what with online sales taking over the industry.

They have a few services to offer, which can set them apart:
1) Smoking lounge
2) Taking care of preferred customers (my shpo protects me!!)
3) Instant gratification.....buy it, smoke it now.


So, if this guy is actually selling these to his preferred customers, at the proper price, well then more power to him. Would it be nice if he put some out for his occasional walkin clientele...............of course.
If on the other hand, he's selling them at OLH, or other similar venues, for inflated prices, or for resale, etc.............well, then he is a tool.


Yes to all of those. I have had business owner do the same for me as well. I think what bothers me is that he will only sell these opus to friends and won't make them available to other people as well, no matter how much you can strive to be "preferred". I would bet that I spend more money on cigars that 75% of people who smoke and won't have access.



The more I think about it I am just pissed about it and not thinking logically from a business mindset.
Plowboy221 Offline
#10 Posted:
Joined: 03-03-2013
Posts: 5,140
You wouldnt happen to be talking about the one with yester in it Would you?
Abrignac Offline
#11 Posted:
Joined: 02-24-2012
Posts: 17,256
Ndill wrote:
I usually agree with what I have read you post in the past but I am not in total agreement with this. Yes, he does have the business and himself to look out for. At what point though is a service business become a self serving business while you have a limited and controlled product that people want?


It really comes down to civil rights. My far-left leaning mother taught me that my rights end where another person's begin. That's about the only thing we agree on.

With that in mind, I see no right to anything by a consumer until that person has actually completed a mutially agreeable transaction. Consider it a property rights issue. As long as one's use of their property doesn't cause harm to another, then their rights reign.

That's not to say that I wouldn't be pissed if I couldn't obtain something I desired due to unfavorable conditions. But, you're going to have a hard time making a case you were "harmed" because someone will sell you 98.5% of his inventory, but reserves the other 1.5% for his best customers.

As far as a business becoming self-serving. If the point comes where the customer's feel that way, then that situation will take care of itself.

All that being said, my shpo's protect me. I can usually get hard to find Fuente product at MSRP. If there is something you want, I'd be glad to pick it up and send it your way. IIRC one of the B&M's I frequent has Anejo's in stock, the other one has Anejo's and xXx Belicoso's in stock. One even has an unopened box of sungrown 8-9-8's. But, I think the manager is hoarding that for herself.
Ndill Offline
#12 Posted:
Joined: 07-29-2011
Posts: 1,525
Plowboy221 wrote:
You wouldnt happen to be talking about the one with yester in it Would you?

PMs
Thunder.Gerbil Offline
#13 Posted:
Joined: 11-02-2006
Posts: 121,359
Plowboy221 wrote:
You wouldnt happen to be talking about the one with yester in it Would you?


Me? No.
ZRX1200 Offline
#14 Posted:
Joined: 07-08-2007
Posts: 60,571
NDill I would tell him your "preferred" business will be conducted somewhere else if you don't get on the list. Then ask him if its because your part black and tell him the conversation is being recorded
ZRX1200 Offline
#15 Posted:
Joined: 07-08-2007
Posts: 60,571
Also the biggest obligation of having an account that I know of is buying a certain dollar number of their product every year. If this shop is as rinky-dink is you say I would but that he is buying them on the secondary markets and being the cool guy with his friends while making a buck
Abrignac Offline
#16 Posted:
Joined: 02-24-2012
Posts: 17,256
ZRX1200 wrote:
Also the biggest obligation of having an account that I know of is buying a certain dollar number of their product every year. If this shop is as rinky-dink is you say I would but that he is buying them on the secondary markets and being the cool guy with his friends while making a buck



Not so much minimum pricing, but surprise orders. I recall being at a shpo owned by a very good friend. One day when a box came in from Fuente. He looked at it and began cursing. It seems he'd gotten a shipment of cigars he hadn't ordered, but was assumed he'd want them anyway. Since he actually had an Opus account, he said he had to suck it up. When he went out of business, he had as many Fuente cigars as he had of all else combined.


IIRC he had about 10-20 different Opus vitolas in stock. Right before he shut his door, I remember him trying to work out a deal from an out of state buyer trying to bye out his remaining Opus stock. MSPR was about $8000 for all of them.

The running joke in the shpo was a take on Henry Ford's famous quote. It was "Boys you can have any cigar you want as long as it's a Fuente."
gryphonms Offline
#17 Posted:
Joined: 04-14-2013
Posts: 1,983
I am very fortunate that my local B&M has good business practices. He has also cultivated back channel relationships with the producers for lack of a better term. He sells 50% of his hard to get cigars to preferred customers. The other 50% go into the humidor. I think this is a fine set up which is good for his business.
bassman45 Offline
#18 Posted:
Joined: 07-05-2009
Posts: 4,087
ZRX1200 wrote:
Does he have fake maduro double robusto Opus?


I've still got 1 left from hereAnxious
victor809 Offline
#19 Posted:
Joined: 10-14-2011
Posts: 23,866
Abrignac wrote:
It really comes down to civil rights. My far-left leaning mother taught me that my rights end where another person's begin. That's about the only thing we agree on.

With that in mind, I see no right to anything by a consumer until that person has actually completed a mutially agreeable transaction. Consider it a property rights issue. As long as one's use of their property doesn't cause harm to another, then their rights reign.



An interesting wrinkle in the debate would be the rights of the manufacturer. One could argue they sold to him in good faith that he would redistribute, through a legitimate business, the goods.

Not disagreeing with you exactly, but when you discussed the rights of the business-owner vs consumer it occurred to me that there might be a 3rd party who has specific expectations of the deal. More importantly, these expectations may be built into a contracted sale.
Abrignac Offline
#20 Posted:
Joined: 02-24-2012
Posts: 17,256
victor809 wrote:
An interesting wrinkle in the debate would be the rights of the manufacturer. One could argue they sold to him in good faith that he would redistribute, through a legitimate business, the goods.

Not disagreeing with you exactly, but when you discussed the rights of the business-owner vs consumer it occurred to me that there might be a 3rd party who has specific expectations of the deal. More importantly, these expectations may be built into a contracted sale.


Valid point. But, as they say possession is 9/10's of the law. The shpo owner does risk the loss of his account if he doesn't follow the agreed upon rules.
Ndill Offline
#21 Posted:
Joined: 07-29-2011
Posts: 1,525
victor809 wrote:
An interesting wrinkle in the debate would be the rights of the manufacturer. One could argue they sold to him in good faith that he would redistribute, through a legitimate business, the goods.

Not disagreeing with you exactly, but when you discussed the rights of the business-owner vs consumer it occurred to me that there might be a 3rd party who has specific expectations of the deal. More importantly, these expectations may be built into a contracted sale.

Very good point.
Ndill Offline
#22 Posted:
Joined: 07-29-2011
Posts: 1,525
ZRX1200 wrote:
NDill I would tell him your "preferred" business will be conducted somewhere else if you don't get on the list. Then ask him if its because your part black and tell him the conversation is being recorded


This seems to be the best solution to the problem honestly.Herfing
Puffnstuff79 Offline
#23 Posted:
Joined: 02-24-2014
Posts: 4,752
I saw some Lost City in a B&M. They were charging $40 and some change. I just couldn't figure on doing it. Which was probably why they sat there calling my name. With my wife with me all I could do was chuckle and act like I didn't even think about it
Ndill Offline
#24 Posted:
Joined: 07-29-2011
Posts: 1,525
^ good choice. Lost city (any vitola) are not as good as try line opus IMHO. The price at $40 is way off also.
rfenst Offline
#25 Posted:
Joined: 06-23-2007
Posts: 39,245
victor809 wrote:
An interesting wrinkle in the debate would be the rights of the manufacturer. One could argue they sold to him in good faith that he would redistribute, through a legitimate business, the goods.

Not disagreeing with you exactly, but when you discussed the rights of the business-owner vs consumer it occurred to me that there might be a 3rd party who has specific expectations of the deal. More importantly, these expectations may be built into a contracted sale.



Manufacturers have the right to set retail prices and can refuse to sell to a vendor who does not comply.

Your third party beneficiary theory is interesting, but doesn't fly because there is no vested right enuring to the entire public.
victor809 Offline
#26 Posted:
Joined: 10-14-2011
Posts: 23,866
rfenst wrote:
Manufacturers have the right to set retail prices and can refuse to sell to a vendor who does not comply.

Your third party beneficiary theory is interesting, but doesn't fly because there is no vested right enuring to the entire public.


Damn lawyers and their damn liberal vests.
Ndill Offline
#27 Posted:
Joined: 07-29-2011
Posts: 1,525
Nobody likes vests. Cept prep college kids
tonygraz Offline
#28 Posted:
Joined: 08-11-2008
Posts: 20,226
rfenst wrote:
Manufacturers have the right to set retail prices and can refuse to sell to a vendor who does not comply.

Your third party beneficiary theory is interesting, but doesn't fly because there is no vested right enuring to the entire public.



There was a legal case about that, someone vs Robinson Wholesale, where the Supreme Court said that manufacturers cannot enforce sales at a set price. That's why the the "S" is in MSRP.
gryphonms Offline
#29 Posted:
Joined: 04-14-2013
Posts: 1,983
Is a liberal vest green or pink?
Abrignac Offline
#30 Posted:
Joined: 02-24-2012
Posts: 17,256
tonygraz wrote:
There was a legal case about that, someone vs Robinson Wholesale, where the Supreme Court said that manufacturers cannot enforce sales at a set price. That's why the the "S" is in MSRP.



If you mean:

Bulova Watch Company v. Robinson Wholesale Co.
108 N.W.2d 365 (1961)

That is a state case and as such only pertains to Iowa.
Buckwheat Offline
#31 Posted:
Joined: 04-15-2004
Posts: 12,251
tonygraz wrote:
There was a legal case about that, someone vs Robinson Wholesale, where the Supreme Court said that manufacturers cannot enforce sales at a set price. That's why the the "S" is in MSRP.


Tell it to Apple.
Abrignac Offline
#32 Posted:
Joined: 02-24-2012
Posts: 17,256
Just to add, even if outlawing minimum pricing was the law of the land it could still be practiced. All a vendor has to do is cut off an account that is selling them below map is to audit then ban them because they owe $3.75.
ZRX1200 Offline
#33 Posted:
Joined: 07-08-2007
Posts: 60,571
True...........true


Mellow
DrafterX Offline
#34 Posted:
Joined: 10-18-2005
Posts: 98,534
Mellow
earthson Offline
#35 Posted:
Joined: 01-30-2010
Posts: 217
ZRX1200 wrote:
Does he have fake maduro double robusto Opus?


Yes, CI - please bring back the counterfeit Opus maduros! I just sold all my CCs so I can pay upwards of $35 per stick on merchandise that was definitely NOT gotten through Prometheus/Fuente!

On a side note, I hear the fake maduro Opus have lovely notes of substandard Honduran tobacco!
bassman45 Offline
#36 Posted:
Joined: 07-05-2009
Posts: 4,087
Well I remember getting mine for just under $30 each,you can have one for $25 lolBeer
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