Will cigarette smokers have any money left for anything else? Altria Group (MO) says it will soon raise prices on Marlboro and other brands by 71 cents a pack. In less than a month, a federal excise tax will kick in to the tune of 61 cents per pack.
The Altria price hike -- the third in as many months -- is a reaction to the new federal tax. Altria thinks cigarette sales could drop a bit, so it's increasing prices to make up for the loss. Now, analysts at Credit Suisse expect Altria's revenue to grow this year instead of decline.
The average price for cigarettes will soon be above $5 a pack, according to Credit Suisse. That probably won't have much of an impact on smokers, the analysts said, since sales volume didn't really change in states where prices have already surpassed that mark.
I wonder, then, what is the price level that will finally turn off smokers?
I finally got fed up with how I felt all the time and paid for a Chantix prescription. I stopped smoking within a week and I'm coming up on 2 years smoke free this May 5th! My savings (apprx) is $ 2,760.00 based on $30 per carton (Marlboro Light Menthols) for 23 months. I'm not preaching, just saying.
The above article, without my final comments, was courtesy of MSN Money 06 Mar 2009.