Ty Murphy

Like, what is really doing that?

Well, what we found out was we have disrupted an entire distribution chain.

So the way cigars get over here and make it to a golf course is they come through Miami, usually.

You're welcome.

They come through an importer.

The importer sells to a distributor.

The distributor sells to a wholesaler.

And then all that money gets trickled back down the line.

So it's like at each stop, a little piece of margin is being held.

And then the golf course finally buys it.

And they're usually only seeing 20%, 30% margins.

So what do they have to do?

They want to make 40%, 50% margins.

They're going to want to carry it.

So they mark it up.

Well, you also have these distribution chains who say, yeah, I'll sell it to wholesalers, but if I could sell it to a wholesaler for 30% off, why can't I just mark it on my website at 20% off and keep the same percentage as I'm keeping over there and always sell it online to a bigger audience, direct to consumer.

So what that done is that that undercuts the course.

So now the course can't sell that cigar for even at MSRP because they're always being sold online for cheaper.

Well, we're the only ones that decided to build our own cigars.

And because nobody would carry us, we had to build our own distribution channel.