Ecig prices are looking even better as Big Tobacco is at it again, reminding us that e cig brands are the way to go if you want to save money in addition to all the other benefits of ecigs. If you take even a cursory look around, you’ll see that e cigarette savings are everywhere and give smokers an opportunity to save hundreds, if not thousands of dollars a year. We’re used to ecig prices falling for the most part, as competition drives the cost for consumers down like it does in most industry. Well, traditional tobacco cigarettes are just not like any other industry. They have ultimate control over their consumers, and they like to use it.
This type of handcuffing of customers is something we have seen especially in the past several years. As Big Tobacco has seen smoking rates decline, they have had no other way to make more money but to raise prices. Now they are at it again, making for the third price increase in the last 12 months. The recent announcement by Philip Morris USA that they would raise their prices by 2% comes after a similar increase in November, and another in May of 2014. When on of the “big three” raises prices, the others always follow. So this means that even if you don’t smoke Marlboro, you’re likely to start paying more for your cigarettes soon.
This is something smokers need to get used to, because unlike e cig brands, tobacco cigarette brands have the power to squeeze ever last drop out of their customers. ecig prices are competitive because everyone is looking to bring in some customers to try their product, while Big Tobacco know they have theirs hooked. All they need to do is keep reeling in the dollars, because they assume their customers won’t leave. But with e cigarette savings so obvious for all to see, this is beginning to change as more smokers are making the switch. Maybe that’s just another reason for the price jumps, as these mammoth companies seek to get more money now from their customers, while they still can.
Ecig Prices Offer Alternative To Rising Tobacco Costs
Just to make it clear, this isn’t something that seems temporary and smokers shouldn’t expect any relief in the future. No, just the opposite is likely to occur.
As Wells Fargo tobacco analyst Bonnie Herzog explains, “This announcement supports our thesis of continued strong pricing power for the tobacco industry”.
Herzog further assessed the situation, writing, “Overall this price increase is positive and demonstrates the industry still has very strong pricing power—and this is coming on the heels of several quarters of very strong pricing. Basically, people addicted to cigarettes will pay more and more.
Given that underlying cigarette industry consumption will likely continue its long-term trend of declining, pricing remains a critical driver of revenue and remains necessary to drive top-line growth.” What all of that means to smokers is that they should expect to pay more money. That “pricing power” term just means that Big Tobacco feels they can take more of your dollars for the exact some product, just because you will pay it.
But smokers don’t have to do that anymore. They have an alternative to shelling out more each year out of necessity. Electronic cigarettes bring with them a great opportunity to save money because of low ecig prices, as well as showing Big Tobacco that they don’t control us. E cigarette savings can make a big impact on a household’s monthly budget, simply by trading out the cigarette brands you know for the e cig brands you may ultimately like better anyway. After all, besides the cost savings, ecigs don’t stink, can be used almost anywhere, and have become a lifestyle changing tool for millions of former smokers.
That’s why it truly is time to make the switch to ecigarettes. This additional price increase by Big Tobacco isn’t the reason to make the switch, it is just another affirmation as to why you should have done so already. Nobody wants to waste their money, but even more than that, nobody wants to be helpless to the whims of huge conglomerates that only want to suck you dry for more money. It’s time to take a stand and make your bank account feel better at the same time. If you haven’t already tried a quality ecigarette before, do so now. Any of our top rated e cig brands can help you on your way. What have you got to lose?