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Getting Branded And High Quality Items Like Cigarettes At Reduced Rates
It is one thing to buy stuff that is very expensive and is of high quality. It is usual and understandable that people always expect to buy high quality stuff at expensive rates. This is what the conventional market system has done to us. We take things for granted. But there are indeed better things outside this convention. There are wonderful exceptions which are simply calling out to us to be used and enjoyed. One such great opportunity that people fail to take is that of the branded and top quality cheap cigarettes being available in certain online shops. These are also available physically, but there are some special cases. These shops are called the duty free shops. Such a Duty free store is meant to provide stuff which is branded and of the highest possible quality to people who cannot afford to pay the high prices meant for these products. Now, it must be kept in mind that most of the top branded products are directed towards the richest sections of the society.
Marketing is done very thoughtfully. There is no abrupt or guesswork kind of decision making involved, ...
... ever. It is always based on precision and calculated probabilistic analysis. That is why, even when they are actually providing the customer with the top quality and branded items, like Cheap cigarettes of top brands, they know exactly what they are doing. They are only penetrating the market base more vertically. In other words, they are increasing their demographic base. This is often done by companies because they want their product to get more exposure. It is also about a case of image and perception. If a company is having some legal problems and it wants to have a better image with the society, then also it is going to reduce the price of the products. However, the trick is that they are not really getting less.
So how are these companies getting a branded Cigars store to sell the stuff at reduced prices without having to bear the brunt themselves? How can they ensure that there are not cuts in their profits or revenues? The answer lies in the fact that there are broadly two components in the pricing of any product. One includes the part that is created due to the taxation or duties imposed on that particular product. People usually don’t have any idea about this as customers. When they buy stuff, it doesn’t matter to them if 10% of the $500 bill being landed by them is actually not gained by the company selling the product but by the government in the name of taxation or duty payment. But it does matter to them if they don’t have to pay that 10% extra, in other words, if they have to pay lesser.
So such a Free Tax store is beneficiary to both the consumer as well as the seller of the product. But does it mean that the government is losing out, by not charging the tax or duty. Absolutely not, there are diplomatic and political gains to be made from the same.
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