Cheap Cigarettes Thanks To Duty Free Shopping
It is not possible for everyone to buy stuff at high prices
. It is very importantto 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.
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