subject: Cheap Cigarettes Thanks To Duty Free Shopping [print this page]

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It is not possible for everyone to buy stuff at high prices. It is very important

to do things at not so expensive rates. This is crucial and central to the natural

tendency of human beings. They all want to save money. But people cannot

always save money because they have to buy things and consume. They can


save money through tax free duty free cigarettes, for example. This is possible

because often the high quality, top priced luxury items are available at reduced

or discounted rates. This is made possible by several kinds of policies that exist

with the government. For example, foreign tourists can buy stuff from shops at

discounted rates.




Let us now see how the discount comes into effect. First of all, one may be

inclined to ask what the economics is that is at work behind the high pricing of

these luxury items. People must be interested in knowing how exactly such high

costs are given to these luxury items. If we closely analyze the cost or pricing

structure of these items, it would reveal that the major component that is

responsible for high pricing is the tax element. The taxation on general online

cigarettes is very high and hence the price is high on luxury items.




But even branded luxury items can be obtained at very cheap rates. There are

certain shops that are called tax free or duty free shops. These shops are ideally

meant to serve the people who cannot buy really costly items and yet do not

want to miss out on the best items out there. For example, they will be able to

buy duty free cigarettes or in other words, high quality cigars at rates which are

unbelievably low. So one must be wondering how this is possible. The fact is that

the government does not levy taxes on these shops, so they are able to sell at

much reduced rates.




But this does not mean that their business is in any way negatively affected. On

the contrary, their business is almost always going to be better because more

people will be attracted towards buying these products than when the price was

much higher. Such an online cigars shop will easily become the star attraction

of those who generally cannot afford to buy the top quality and often imported

cigars, like those of Cuba, or Cuban cigars.




Many people believe this is an important promotional strategy on part of the

companies also. By lowering prices, they are able to reach out to a new set

of target audience as well, people who were not interested before the price

lowering in the product. So, in that sense, this is actually an increase in the total

number of target customers or in other words, a vertical penetration in the

universal set of consumers or total market for that product category. So the

concept of shops having tax free duty free cigarettes is clearly going to resonate

with so many more people than today. Also, other luxury goods like perfumes and

alcoholic beverages will also be part of the scheme.

by: AlinaQuest

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