Well when I worked for british american tobacco, it was based in australia, where tax on tobacco sales is around 95% of profit (thats where I was given the figure of a few cents per tailor made ciggarette).
Where I live, now, in new zealand, tax is now around 99% of profit, and set to increase every year for the next six years (until virtually no one can afford them).
What percentage of profit, tax, does america charge? Is it less than 95%? Perhaps the profit per ciggarette could be slightly higher, if the government is taking less tax?
Okay, thats a concrete figure. If we are talking 20's and 30's, and you take 95% out, that leaves up to 45cents, which is about right, based on the australian tax level (their currency is pretty similar in value to US dollars). So for the BT take to be higher, the tax in the US must be lower than 95%. If it was 80%, the 9 dollar profit would end up being 1.20 for BT, which assuming at least 20 ciggarettes is nine cents per ciggie.
What percentage goes to the govt in the US i suppose is really the question, as to how much BT actually makes per ciggie in the US?
Looks like its both state and federal level tax so it depends on where you are. Indeed looks it might be lower than alot of other western countries.
Wiki-
What we I guess need to figure out then, for US sales, is the sale value of that 9 dollar profit pack, and how many ciggies are in them (which you should know yes?), so we can figure out the production cost, to subtract that, as well as the 56.6% govt take (variable by state) and determine profit per ciggie.
Interesting really, as it does seem like your tobacco taxes are lower than many other places. But I am still curious to determine profit per ciggie. Its certainly more money in the govt pocket, like most places, than it is for BT.
And I think even with this potentially lower tax take, the originally quoted profit of "5-10 dollars per day per smoker on average" which I was responding to, seems way off the mark.
....
....
And how much is the mark-up on most e-juice? Its about 50% or more isnt it? Certainly DIY is much cheaper, and thats not even using bulk sources...
Smokeless images nicquid is 19.99 US for a 30ml. Which I think is probably more than 50% markup. At 3ml a day (many vapers say they use alot more than this), thats 1.99 retail per day, and probably over half of that is profit. Thats certainly more than tobacco companies are making per day per smoker in NZ or australia with our tax rates (and thats only liquid, not pre-filleds), but it could possibly be lower than tobacco smokers, at your potentially lower tax level in the US.
Thing is though, most vapers use pre-filled cartos - by _choice_, for "convenience" (like most smokers use tailors), which so far as I can figure would be equal to, or more profit per consumer in the US (rough as math). Assuming say 9 or 10 us bucks per pack of 5, 3mls a day still, and 50% markup (which may be less or more than actual mark up on pre-filled cartos).
In general I think its a good idea to do whatever actual math we can (even if its very rough like this post), rather than just assume profits would be lower. So far as I can figure, even with your possibly lower tobacco tax of 56.6% of total sale price, there could be higher profits from pre-filled carto sales per consumer than from tobacco sales.
We should also compare profit wise, tailors with pre-filleds, and roll your own with juices, as that makes more sense.
Last edited:
