I think we need to look at the whole picture. How long has this place been in business? How many patrons does he have at any given time? Is it usually crowded, or are there plenty of empty seats? The op states he buys boxes, but what kind and how many? Keep in mind it takes volume to keep the lights on. A consistently half-filled room probably spells a losing proposition. The primary reason for their existence is to make money. If the public doesn't cooperate by buying enough to make it worthwhile, then it's time to cut costs.

I'm pretty lucky. There is cigar bar about 30 minutes away. I only go there once a month for his tasting events. Never draws a big crowd, and I've only been going to these events since March. I usually buy a box. He discounts, so it's only slightly above the online prices. But I think I'm the exception rather than the norm. Most of the other event patrons pay their 10 bucks, smoke the free stick, buy a drink or two, eat the food, taste the featured liquors, then leave. The staff, and now the regulars, treat me like one of their own. They know me because i consistently drop some cash before I leave, if not for the featuered cigars then something i smoke regularly (he knows what i prefer). But how he's able to do this is because this is simply a side business attached to his upscale restaurant.