How much smoke shops make?

Answer 1

6% on Cigarettes and 10% on Beer. Some stuff you must sell at a lost and earn rebate money which is provided by the manufacturer. Most of the business for tobacco stores are made from other convenient stores who buy the cigarettes from the tobacco store because they are sold at a lost and is cheaper than the wholesaler and they resale in their own store in order to cheat sales taxes. ie: Carton of cigarette "A" from the distributor is 50 dollars but there is a 10 dollar rebate from the manufacturer so the tobacco store will calculate the price to sell the ciggerette at 50$ - 10$ = 40$ X.06= 2.4$

so you take 2.4$ and add to 40$ to get $42.40 per carton. When you resale the cigarette to a customer it is cheaper than what you can get from the manufacturer so many convenient stores are tempted to go ahead and go to the tobacco store and buy a large volume and pay tax and then resale in their own store and cheat sales tax. ie: i own a convenient store and i buy from the tobacco store ciggerettes for $42.40+tax then i can take that carton of cigarettes which is cheaper than the wholesaler and resale in my own store with a 20% mark up plus the sales tax I'm cheating which could be anywhere from 6-7% tax rate for a total of a 26%-27% profit. Sales tax would be easy to cheat in this case because i have no invoice to show that i bought any cigerettes from the wholesaler.

Answer 2

it makes $20 a day