Size Matters

2nd August, 2011: Posted by glpease in Editorial

“Matters. Is that the intransitive verb form of the word, or the noun form?” It’s both. I need to rant. Just a little. Sometimes, I’m told, it’s good for the soul, and I’m hoping this will be one of those times.

See, I made the decision early in my business to package my tobaccos in 2oz quantities, and later in 8oz, which is 13% more tobacco than the much more common 50g and 200g tins. I’ve stuck to my Imperial Avoirdupois guns ever since, despite some not insignificant pressure to change to Metric measures to more easily accommodate export sales. (Truthfully, internally, I’m all metric anyway, but have to convert to English measures for manufacture. It would actually be easier to just stay metric through the whole process, but that’s another story.)

The gripe, for me, comes when people start comparing prices, without actually doing the arithmetic. While a 2oz tin of one of mine might cost a bit more than a 50g tin of someone else’s, the price per gram, or per ounce, or per bowl, is often actually lower for mine. But, it’s hard to overcome perception. They’re both tins, and look to be the same size. People have become accustomed to tobacco sold in 50g, 100g and 200g quantities, so they internally assume all tobaccos are sold that way. This is borne out by the fact that I frequently see people on the net talking about “a 50g tin” of one of my blends, and, really, it drives me just a little batty. Even some retailers have advertised them as 50g, despite the fact that they are a full 2oz, and they should know better.

The fact is, packaging costs in materials and labour are the same for a 50g tin as they are for a 2oz tin, and since this is actually a significant percentage of the overall manufactured cost, I figure, why not put the extra tobacco in, and give the consumer a little better value? It actually makes sense. But, people don’t do the calculation, and then squawk because my price point is higher than some of the competition. Maybe I should just change to 50g, leave the price the same, and pocket the difference. At the end of the month, it might buy me a pound of coffee or something.

Lately, I’m seeing more 40g and 1.5oz tins showing up on the market, which will further confuse the market. Some of these end up being significantly more expensive per ounce, despite the fact that the price of the tin may appear competitive. Math shatters illusions, but people are probably just too busy, or perhaps too uninterested to take the time.

Really, when you look at it on a per bowl basis, the differences are pretty insignificant, so this is all likely academic. But, I am left to wonder, how many actually think about the price per ounce or per gram, or per bowl, and how many consider only the price of the tin when comparing? What do you think about when considering “value?” Is price, at least within reason, a consideration in your buying decision, or do you just buy what you like, and not worry about the cost? (And, don’t worry. This is not the harbinger of some impending skyrocketing of prices. As we always have, we’ll continue to hold them where they are as long as we possibly can.)

-glp

11 Responses

  1. Bruno Says:
    August 2nd, 2011 at 14:29

    These considerations of yours are actually very well exploited by the marketeers. I’ve noticed quite a few brands placing similar products with similar, alas fancier, packaging with substantially less quantity in and a slightly lower price than that of its competitors. It turns out that the inconspicuous customer will be driven to the fact that the price is lower, and thus proceed to buy the more expensive product. That is why, in many grocery stores, you’re presented with the price per unit. I, as a consumer, tend to look at it, when I need to decide between two items.
    Perhaps you could enhance your tins design by placing the quantity both in oz and grams. Not sure if it would solve the problem, but it sure would help us europeans have a better sense of what we’re dealing with.

    [Thanks for the comments, Bruno, and I think you’re quite correct. In fact, the tins do have both gram and ounce measurements on them! -glp]

  2. Mike Says:
    August 2nd, 2011 at 19:08

    Hello Greg

    Every so often a quote request comes across my desk and the dimensions on the print are metric. And the request came from an American company. Yes it is mildly irritating but I use the 25.4 conversion and figure it out. When I submit my quote back to the customer I spec the size out in English to 3 places past the decimal point. Proving a point whether anyone notices or not I’ll never know.

    Ultimately I guess the market will dictate how we present our product. As long as I operate an American company I will use the standard system of measurement.

    The good news for GLP is I will continue to stock my shelf with your fine blends regardless of the unit of measure. But for now the 2 oz can gets my vote.

  3. david form OZ Says:
    August 3rd, 2011 at 5:09

    Greg,
    For every dolt out there who sees 2oz’s the same as 50 grams, i’m sure there are as many that understand they are getting more.

    As others have commented; marketers love using size creep (downwards) and price creep (upwards) to rip of unsuspecting consumers. I assumed that it was a deliberate marketing ploy by GLP inc to use 2oz’s instead of 50 grams to differentiate itself in the market place (it works).

    I for one, appreciate the extra 6.69 grams that i get in a GLP tin for both pleasurable and financial reasons. Something that may amuse you is that on the occasions my imported parcels of tobacco are stopped by customs, they treat 2oz tins the same as 50 gram tins, thereby saving me 13% tax. When you live in a country where they charge you a mercenary $430 per kg ($210US per lb) tabacco tax, you appreciate the difference.

    Lastly, the defining reason I buy GLP is because i like it, not the size of tin. I am in no doubt that superior products do not require gimmickry to sell and will stand on their own merits and succeed. To add another cliche to the topic…its what’s inside that counts…

  4. Jason Knott Says:
    August 8th, 2011 at 6:39

    Greg,

    This I part of the reason why I always count the number of smokes I get from a tin (usually use the same pipe rotation). Even with the same weights, differences in moisture level, at least, affect how much smokage you get. Some very good, and apparently low priced flakes only get me about 15 smokes per 50g tin. Your mixtures get 25 at least and sometimes upwards of 30. So I for one will never listen to those complaining about your prices.

  5. macuaig Says:
    August 9th, 2011 at 16:41

    I say you have an opportunity to not only set it right but help everybody enjoy the truth. If you’re selling “56 grams (2oz)”, say it on the tin, and say it big. It’s that baker’s dozen, that extra dollop, that licking the spoon, that extra special “Pease Puff: An Extra Evening in Every Tin”, because it’s so good a little tin can’t hold it. You know the value isn’t understood, and you’re the only one who can make everybody feel better about it.

    Geez, I’m getting all into this. Good luck with it, Greg.

  6. Patrick ValBlanc Says:
    August 16th, 2011 at 10:33

    Hi there Greg.
    From my perspective (one must understand that I’m canadian). With the tobacco taxes what they are, I’m quite used to paying for my hobby. Most tobacco products come at twice the price they go for just a few kilometers south of montreal. That being said, I’ve never seen a tin that sold at twice the price of another, and for the little difference in my pocket represented (and by no means am I any kind of well-off)by the difference between the cheaper tin and the pricyest tin on the shelf, I’ve never compromised on the quality of what I smoke for a peasely 5$. Basically, alls I’m trying to say here is… who even bothers to ask: oh, before I buy this excellent blend that will bring me hours of satisfaction, what does it cost? Whilst knowing that it all falls within five-ish dollars of difference? Such a person will spend his or her life missing out.

  7. Luca Chichizola Says:
    September 10th, 2011 at 8:59

    I love your tobaccos so much that I don’t care about the price, about the weight or such minor stuff. Hell, I’d buy your Latakia blends even at 20 EUR per 2oz tin.

    Problem is… that I can’t find them here in Italy, and import won’t work anymore since Customs have started seizing all parcels from outside EU. I am running out of stock, so please find a way to import your blends to Italy or at least Germany (and then I’ll think about getting them from there). :-)

  8. Michael Lankton Says:
    November 19th, 2011 at 5:47

    The only gripe I have with your blends is that more of them should be available in 16oz tins. If something is good I want more than 2oz, and stockpiling 2oz tins is not a cost effective way to cellar. My vote is for Charing Cross and Meridian to receive 16oz tin treatment. A 16oz offers substantial savings over buying 8oz tins at the current 8oz tin price.

  9. Bill MacLean Says:
    November 19th, 2011 at 20:45

    Just wanted to add my perspective. GL Pease tobacco is fabulous. For most things (e.g. cars, clothing, houses, schools, etc) the very best of any particular type is only within reach for the truly wealthy.

    As a regular guy, it’s pretty cool that I can shell out 10 or 12 bucks and get 56.6990463 grams of a genuinely fantastic product. I’m not just getting something that is good, or even excellent, but the very best of its type.

    Of course, I don’t smoke much (a two oz tin may last me 6 months or more), so the cost is pretty negligble in my case.

    I don’t know how much tobacco a normal smoker goes through in a year, but I would think the normal market pricing forces don’t result in a horrible expense.

    Taxes could be a different story. I was astounded to read that the guy from Oz has to pay a tax of over $200 / lb. Unfortunatly, there are people in the US who would probably like to impose similar taxes.

  10. Ed Duncan Says:
    January 7th, 2012 at 21:13

    as to request for larger size cans, smokingpipes.com has many of yours & C&D. Also, ‘tho a tad more expensive, I’ll buy direct from C&D. Craig will pretty much package anything they have anyway you want it. While here Greg, must ask your opinion(s) on what some say is the most diabolical latakia bomb out there….Hermit “10Russians”.

    Thanx & keep on keepin’ on
    Ed Duncan, Batavia, NY

  11. Tyler Hathaway Says:
    January 20th, 2013 at 11:59

    Price is not really a consideration for me with tobacco. It’s a luxury, and just a small one at any rate. I spend a multiple of a tin every time I fill up my car, so what’s the big deal about an extra buck or two? Seriously.
    I do like the fact that you’re sticking to the US measurements (I know that’s the same as “imperial” for weight, but not for other things, and the “empire” is long gone.) As you say, it’s a bit like getting the baker’s dozen. Stick to your proverbial guns. :)

    [Tyler, I like the way you think. I was talking with someone over the weekend who smokes cigarettes, spending on a single pack more than a tin of my pipe tobaccos, and getting a lot less enjoyment out of it. I’m not sure I convinced her to take up the pipe, but there’s always hope. From the perspective of economics, pipe tobaccos are actually quite a comparative bargain, whatever their price. -glp]

Share Your Thoughts

Please note: Comment moderation is enabled and may delay publication. There is no need to resubmit your comment.