Ever wonder how some cigar stores stay in business?

[Coolhand]

The cigar business, anyway.

Just returned from visiting an ailing (dying, really) grandmother in Greenwood, MS. Found a store right by my hotel called "The Stogie Shoppe." Thought, why, what a deal!

Went in there and it's just a plain old tobacco and beer place, which was obviously doing a rip-roaring business selling chew and MGD.

Rather disappointed, I was about to leave, when I noticed a smallish cabinet humidor in the corner. Eagerly ran over and peered inside and noticed several nice brands. First box to catch my eye was the Oliva Serie G Cameroon -- a cigar I've heard nothing but good things about and was looking forward to trying, and here in this epitome of podunk town was a whole box of Toros. I'm envisioning myself packing the whole box home for pennies on the dollar ... until I looked at the price.

$7.95 a stick! Now, no, this isn't an exorbitant price for a good cigar, but the whole allure of the Serie G is that they're apparently considered one of the best "bang for the buck" cigars out there - you can get them for around $3.25 for a single online in many places. I can get them locally, just haven't gotten around to it yet.

Patel Sungrown Toros were $9.50!

I politely inquired about the prices they were charging and got rather pointedly told that those were the going rates "around here" and to take them or leave them, so I chose the latter and went back to the room to smoke something I brought with.

I don't understand how, in this day and age, anybody can expect to be able to get away with gouging folks that way. I know Greenwood isn't exactly the high-tech center of the universe, but I'm pretty sure they have internet in the homes the same way they do in the hotels ....

 

[Wasch_24]

My guess...most consumers are not savvy enough, or don't care enough, to know that they are over paying.

 

[Coolhand]

My guess...most consumers are not savvy enough, or don't care enough, to know that they are over paying.

I'm sure that's the truth, but it seems to me this strategy would be self-defeating since, if I know nothing about cigars, I'd balk completely at paying $9 or more on a single cigar.

I mean, hell, I do that now! I don't consider myself all that savvy at all, but good lord.

 

[RigilKent]

yeah locals there probably smoke one on occasion thats why the stogie shoppe only has a few boxes

 

[dpricenator]

You know back in theday before I started buying for the future, I would go in and buy 1 or 2 of whatever caught my eye. I didn't matter that they were 2-3-4 bucks more expensive than the Internet offered, because I was buying for that evening. I know the small liquor stores and such around here are way over priced, but when you buy anything at a liquor store here you expect to pay more, whether its a bag of chips or a bottle of scotch. If you wanted to save money, yoou would have gone to a grocery store with a coupon. If you had not brought your smokes with you and really wanted a cigar, you would have paid the premium. That is what these stores are counting on. IMPULSE BUYING.

 

[blessednxs65]

Things like this make this brotherhood all the more valuable. Between box splits and/or simply having someone purchase the sticks for you in a less tax-burdened state is the way to go. While I am all for helping California's economy shake off the doldrums, I cannot fathom funding the recovery based on the exhorbinant taxes applied to cigars.

As for the poor sap that smokes cigarettes... let him pay.

 

[jwintosh]

i feel bad fo the cigar shops in CA. after they're taxed beyond belief, they still have to markup if they're gonna survive!

 

[blessednxs65]

I too feel that way Jeff for the guys at my local B&M are genuinely great guys. Unfortunately, I can only drop in there for the onesy-twosey sticks and the carmraderie. As far as box purchases... too rich for my blood.

 

[dpricenator]

Yeah Jeff, do people really buy boxes of smokes in B&M shops in CA? You would think that if you were buying boxes of cigars you would be looking for the best deal and be informed about prices online. I would never, and it's unfortunate, because I would rather support the local economy.

 

[RigilKent]

yeah but the cost is so much more to buy local boxes. a few singles helps support but doesnt break the bank as badly.

 

[CWS]

Yeah Jeff, do people really buy boxes of smokes in B&M shops in CA? You would think that if you were buying boxes of cigars you would be looking for the best deal and be informed about prices online. I would never, and it's unfortunate, because I would rather support the local economy.

I am amazed by the number of people that buy boxes in CA.

 

[cvm4]

Shoulda told somebody!

Anyway, places like that usually have a monopoly in small towns. So you either pay the price or drive a couple hours. I'm sure most will choose the former.

 

[Rich K]

Whoa whoa whoa...Greenwood is about the nicest darn place around here. What are you callin' podunk? :headroll:

But seriously, there's nothing as nice as Greenwood within an hours' drive from my house.

 

[Pendaboot]

The deals available on the internet have changed the retail cigar business into a place where one can go to get a taste, and once a new intriguing brand is discovered, we can go home and order a box. In the local supermarket where I live they have singles in a case for nothing less than twelve bucks and anything decent is pushing twenty. Yet I usually see some old codger buying a couple, even though a few miles away there are B&Ms that sell for half that price, and online half again, or better.

Go figure. I wonder if there is any future for B&Ms, especially in jurisdictions where smoking inside (or within 25 feet of the front door) is illegal.

 

[smokinghole]

I think the key would be to have a good selection not kill people on prices and also do some online sales. Location and store presentation has a lot to do with success as everyone knows. Where I come from in north east PA there's a shop called El Humidor. It's pretty big, has all cabinet display humidors not a walk-in which I actually like. You can tell no mistaking as soon as you walk in that you are in a cigar store. The ones I dealt with in north west FL were either really small with a closet sized walk-in, or it was a "novelty tobacco" store with a walk-in. Neither of the two appealed to me and you questioned if you were in a cigar store after being inside. So because of that I strictly bought online due to how the stores presented themselves.

I have a desire to work for myself and run a cigar shop combined with a coffee shop. That way I can capitalize on the morning commuters looking for a specialty cup of joe on the way to work, and on the guys on the way home looking for a smoke. I think where I'm moving to, which is outside of Harrisburg PA, would support a business of this nature. I will have to work for a little bit trying to line things up to get it started once I leave the USAF but it will definitely be in the back of my mind. Hell I forget what company, but they're out of Tampa, and they're opening a three store chain of my very concept. After reading it I felt good about my potential venture. It may not be original, and others have obviously had the idea, but I think it would be successful if local laws would support the combo of cigar shop/lounge and a coffee shop.

 

[Pendaboot]

I like that idea. Service is the key, since you would never be able to offer better price that online. You need to make a place that your customers want to go to, then price becomes secondary.

I think the key in any business is understanding and experience. Before opening a store, it would be prudent to have managed a store for a couple of years first, or have a trusted partner who has such experience. Absent that kind of experience, franchises offer a wealth of knowledge, or at least the better franchises do. Without any of these, your prospects are not as good as they might be. I once started a business in another industry, and thought that I did not need the franchise, but I had a partner with, I thought, experience as a manager. It turned out that he did not have experience in certain areas of the business, and purchasing that knowledge was a very expensive proposition, involving multiple reinventions of the wheel, and wasting over a year, and untold amounts of money, until the school of hard knocks had tutored us enough to straighten up and fly right.

There is always the possibility that the nanny state is not finished with us yet. That is a big concern. But, if that gamble is one you wish to undertake, it would be fabulous to work in an area that you really like. That is more important than money. But if you play your cards right, and get a little lucky, you could make plenty of money, too.

By the way, I just LOVE that Beer prayer.

 

[Coolhand]

Whoa whoa whoa...Greenwood is about the nicest darn place around here. What are you callin' podunk? :headroll:

But seriously, there's nothing as nice as Greenwood within an hours' drive from my house.

Heh, you have my condolences. :bouncetau

Actually, I *like* Greenwood ... I was raised on a very Southern kind of upbringing so it's alright - but man, parts of Greenwood have gone way downhill. They used to trade in cotton and catfish. Now you can add a third "C" - crack.

Jesus, parts of that town were third-world.

That said, around here, if anyone calls me 'sir' it's because they're an Air Force Academy cadet. You open a door for a woman and she looks at you like you're a rapist. :stickbeat

 

[TexaSmoke]

I am amazed by the number of people that buy boxes in CA.

I buy from CA, but I don't have to pay your taxes.

 

[CWS]

I buy from CA, but I don't have to pay your taxes.

This I can understand. The guys that walk into our local B&M and pay full boat plus the tax is what I can never understand.

 

[jmatkins]

CA taxes do suck.