Found 11th Feb 2011
I was working on the cigarette kiosk the other day at work and I was overwhelmed at how many cigarettes we actually sell!
In terms of profit, how much do bigger chain super
Supermarkets make on cigarettes?
If anything at all?
Jack

20 Comments

Banned

What do you mean "if anything atall"? They don't stock them for a giggle.

Banned

whatsThePoint

but they would sell them at cost or even a small loss to attract trade



But for small news agents they wouldn't be able to sell at a loss as their revenue is marginal anyway. He is asking about stores like tesco, imagine the quantity they buy in. Of corse there's going to be profit.

Shops don't make alot on cigerettes. Most of the cost goes to the government as tax. I got told by my corner shop that they only make about 15 - 20p on a box of 20 fags. Like other posters have said they do it to attract customers. Its the same with the 3 for £16 boxes of beers the supermarkets sell. they sell them very close to cost because they know that whilst people are there they will probably do their weekly shop there

Original Poster

Actually mate, often the supermarkets lose out on deals like that.
They're called 'loss leaders'
Hence why most supermarkets have other promotions next to the 3 for £16 or around them.

jonny619447

Shops don't make alot on cigerettes. Most of the cost goes to the … Shops don't make alot on cigerettes. Most of the cost goes to the government as tax. I got told by my corner shop that they only make about 15 - 20p on a box of 20 fags. Like other posters have said they do it to attract customers. Its the same with the 3 for £16 boxes of beers the supermarkets sell. they sell them very close to cost because they know that whilst people are there they will probably do their weekly shop there



Im pretty sure your wrong about the beer offers. I used to work on beers wines and spirits in asda and the supermarkets can pretty much dictact how much stock they want, what size packaging (i.e 15 cans, 18 cans etc). Apparently for every 2 paid pallet of beer the third was basically free.
The major supermarkets make alot more on those deals than you think.

I dunno how people can afford to smoke these days, I've never smoked, not even tried it, but one of my mates & his wife smoke & they spend a fortune !

one word "TAX"

Toasthduk

one word "TAX"



which is why dodgy dave can sell his eastern european pack with no stamps for £2 for a pack of 20 lol

dh058977

Im pretty sure your wrong about the beer offers. I used to work on beers … Im pretty sure your wrong about the beer offers. I used to work on beers wines and spirits in asda and the supermarkets can pretty much dictact how much stock they want, what size packaging (i.e 15 cans, 18 cans etc). Apparently for every 2 paid pallet of beer the third was basically free.The major supermarkets make alot more on those deals than you think.



ok its not as much as I first thought. Just text my mate working nights and he scanned some of the beers! lol its about 25/30% markup.

Banned

dh058977

ok its not as much as I first thought. Just text my mate working nights … ok its not as much as I first thought. Just text my mate working nights and he scanned some of the beers! lol its about 25/30% markup.



yeah, not much at all.

Banned

lot of factors involved with big companies, they also get extra discounts for paying their invoices within a certain timeframe between 5-10% when i dealt with them a few years bck

Banned

They should tax cigarettes more if they were selling like hot cakes

dh058977

ok its not as much as I first thought. Just text my mate working nights … ok its not as much as I first thought. Just text my mate working nights and he scanned some of the beers! lol its about 25/30% markup.



Yes on normal prices, but when you think of the duty to be paid on the beers and they are knocking out 3 cases of beer for £16 then it isn't anywhere near that. More like 2%

numptyj

which is why dodgy dave can sell his eastern european pack with no stamps … which is why dodgy dave can sell his eastern european pack with no stamps for £2 for a pack of 20 lol



Maybe 10 years ago, even dodgy fag prices have rocketed!

jonny619447

Yes on normal prices, but when you think of the duty to be paid on the … Yes on normal prices, but when you think of the duty to be paid on the beers and they are knocking out 3 cases of beer for £16 then it isn't anywhere near that. More like 2%



Nope your wrong, thats the profit per case.

spikeyjacko

Actually mate, often the supermarkets lose out on deals like that.They're … Actually mate, often the supermarkets lose out on deals like that.They're called 'loss leaders'Hence why most supermarkets have other promotions next to the 3 for £16 or around them.



Actually, the term isn't "loss leaders", but "draw items". The difference is subtle but, loss leaders lose money on every sale but are worth doing because they lead customers instore, while draw items are simply a necessity to draw customers in for essentials, while making little to no profit on the product. Newspapers are the same. There's a marginal profit to be made, but the real attraction in selling them is that they bring punters in every day, where they're likely to spend money on something with the usual 20% or so profit margin.

Banned

jonny619447

Maybe 10 years ago, even dodgy fag prices have rocketed!


£2.70 per pack for B&H is the going rate around here and £6.50 for 50g of golden virginia.

I dont know anyone who buys from legitimate sources as far too expensive

I read some time back they did a survey of fag packets after a birmingham city game and 60% of the fags were duty frees!

I reckon if tax was reduced, then the overall tax income would actually increase!

Banned

dh058977

Nope your wrong, thats the profit per case.



really? what is the cost price on them?
There might be 30% on a single case normal price but unlikely on a 3 for £16 deal

dh058977

Nope your wrong, thats the profit per case.



How can that be the profit per case when they sell a case for £10 AND the same profit per case when they sell 3 for £16! Obviously the profit per case has to be different when they run that deal!

Think about it (_;)
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