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BOTL UPCOMING MAINTENANCE
Hi Everyone, as mentioned in my introduction post, BOTL needs quite a bit of updating, patching and whatever else I might come across. Over the next few weekends BOTL may be unreachable on occasion as I do migrations or updates, etc. Just be patient - we'll be back! I'll generally try to keep these maintenances until later in the evenings.
**NEED ADVICE** Shop Owners Please Read
- Thread starter TraderCigarCo.
- Start date
I have owned a couple of building supply businesses that were pretty successful and I did it because I was good at it, not that I loved my business. I wanted my next business to be something I had a passion for. That is why I am not only building a cigar shop but I am building my vision. Huge walk in, barber area, private club, and all the things that I think will make this place awesome. Hopefully my vision will lead to success.
Mr.Draned
The Grey Rooster
When do you hope to open your "shop," if it's safe to call something this great a mere shop?
I'm in Philly and would definitely drive over to purchase a cigar and hang out for a bit!
StogieNinja
Derek | BoM June 2014
I could never, ever put it all on the line to pursue a passion. I'm too risk averse, and I have a family to think about. I'll take the sure thing 100% of the time.
But I do envy those of you with the moxy to go out and pursue a dream! I hope it works out for you, and that you listen to the wisdom already present in this thread. Have plenty of capital to begin with, and have financing secured above that before anything else. I've seen countless small businesses fail because the owners were in it for the dream, but went about things with their heads in the clouds thinking "If you build it, they will come." That's not how it works. And make sure, make really, really sure, you have the cash flow to make it all work. A lot of successful, profitable businesses fold because of cash flow issues.
But I do envy those of you with the moxy to go out and pursue a dream! I hope it works out for you, and that you listen to the wisdom already present in this thread. Have plenty of capital to begin with, and have financing secured above that before anything else. I've seen countless small businesses fail because the owners were in it for the dream, but went about things with their heads in the clouds thinking "If you build it, they will come." That's not how it works. And make sure, make really, really sure, you have the cash flow to make it all work. A lot of successful, profitable businesses fold because of cash flow issues.
This past Saturday was the first day of construction. All the walls from the former tenant came down. Tomorrow they take down the drop ceiling and pull up the old hardwood floor.
Now the fun is beginning!!!!
Now the fun is beginning!!!!
TraderCigarCo.
Alex
Keep us updated throughout the process!! I bet it's going to look amazing. haha.
TraderCigarCo.
Alex
Looks great!!
As I ponder this question, not as a cigar store owner but a customer, although another type of business owner, I would say that your biggest competition is gonna be the Interweb...there's just no way you're gonna be able to compete with some of the prices out there. How does a B&M overcome that? With superior service. As simple as that. Engendering customer loyalty.
Tell ya a true story...when I moved to my current address, I was excited cuz there was a 24-hour B&M combination cigar store and newsstand just a mile from home. I was paying somewhere in the $10-12 range for cigars, I'd pick up 3-4 a week, no need for humidor. About a year ago, I discovered a few of the on-line major sellers, and found out that I could pay $2-4 a stick! Well, hell, the heck with the B&M...I had really never felt that they reached out to emphasize customer loyalty...never saw the owner there, just his minions, and they couldn't care less. Then I began to notice that the magazines that I like weren't getting restocked timely, and lately, I've noticed many empty boxes in the humidor. Ooooopsie! Not a good sign...either that the store's management is particularly solvent, or that anybody cares to keep things restocked.
Some businesses don't compete with the Interweb...your proposed business will go head to head. Be prepared to overcome that, somehow. I'll leave you to figure that out. One of the better ideas is several years ago where a young man rented a very small space from the City, my hometown...this space was adjacent to the downtown theater, and was like 20'X10' max....VERY small, but ideal for a humidor, but the proprietor had to sit outside. He was open limited hours, but that was okay...as long as you could depend on that. He was a member of the volunteer fire department, as well, and before too long, he'd open up, get bored, and go down the street and around the corner to the fire department instead of minding the store. You'd go to the store, find a note that he'd be back in a few, you'd wait a few, no show. So, off ya go! Didn't take too long before his business failed.
The most important hour of any business catering to walk-in business is the first half hour and the last half hour of the business day. Arrive ON TIME...or early...and close up ON TIME...or late. The outfit that supplies parts to my own business failed in that miserably...the proprietor would frequently close up an hour before normal closing time...no notice...and finally, a couple of weeks ago, I just totally started ordering parts on-line. Easy peasy. No wondering if they are gonna be open. Get home from my regular part time job, parts are waiting.
Word to the wise...you can't be lazy. And a business owner works 24/7/365.
Tell ya a true story...when I moved to my current address, I was excited cuz there was a 24-hour B&M combination cigar store and newsstand just a mile from home. I was paying somewhere in the $10-12 range for cigars, I'd pick up 3-4 a week, no need for humidor. About a year ago, I discovered a few of the on-line major sellers, and found out that I could pay $2-4 a stick! Well, hell, the heck with the B&M...I had really never felt that they reached out to emphasize customer loyalty...never saw the owner there, just his minions, and they couldn't care less. Then I began to notice that the magazines that I like weren't getting restocked timely, and lately, I've noticed many empty boxes in the humidor. Ooooopsie! Not a good sign...either that the store's management is particularly solvent, or that anybody cares to keep things restocked.
Some businesses don't compete with the Interweb...your proposed business will go head to head. Be prepared to overcome that, somehow. I'll leave you to figure that out. One of the better ideas is several years ago where a young man rented a very small space from the City, my hometown...this space was adjacent to the downtown theater, and was like 20'X10' max....VERY small, but ideal for a humidor, but the proprietor had to sit outside. He was open limited hours, but that was okay...as long as you could depend on that. He was a member of the volunteer fire department, as well, and before too long, he'd open up, get bored, and go down the street and around the corner to the fire department instead of minding the store. You'd go to the store, find a note that he'd be back in a few, you'd wait a few, no show. So, off ya go! Didn't take too long before his business failed.
The most important hour of any business catering to walk-in business is the first half hour and the last half hour of the business day. Arrive ON TIME...or early...and close up ON TIME...or late. The outfit that supplies parts to my own business failed in that miserably...the proprietor would frequently close up an hour before normal closing time...no notice...and finally, a couple of weeks ago, I just totally started ordering parts on-line. Easy peasy. No wondering if they are gonna be open. Get home from my regular part time job, parts are waiting.
Word to the wise...you can't be lazy. And a business owner works 24/7/365.
I've never worked on the retail side of the cigar business, but my job involves with B&M owners so I've learned a lot about the difficulties of opening a store. Ask yourself these questions, and it's a good place to start:
1) Will it just be a tobacco shop, or do you want customers sitting around and smoking? Do you want a real lounge? Alcohol or no alcohol lounge? If you want it just to be a grab-and-go B&M than you'll need less square footage, but lose certain types of customers.
2) Location is very important. The demographics of an area matter. It's preferable to be 5+ miles away from the nearest cigar store to limit your competition. Parking is also important. Bad parking can discourage people from coming.
3) How many facings do you want? Facings means how many SKUs you will have. I would recommend at least one back up box for each SKU. So, if you have 500 SKUs on the shelf you should have 1,000 boxes total at least. Some stores have more than one back-up box per SKU or depending on which SKU it is.
4) Make sure you have a good POS system as it allows you to manage inventory and monitor sales.
5) humidification and filtration are important.
6) The build out can be costly, so make sure you're efficient in using space. When designing the store you need to be smart about the space you have. The store I regularly go to has a wall with a TV, but surrounding the TV is unnecessary shelves with old magazines, a cappuccino machine (he doesn't charge for drinks), and junk. Nothing on that wall generates any revenue. Me and a couple regulars have finally talked him into putting lockers as he has the right demographics and demand. Those lockers can generate him $12k in revenue per year. He has been misusing that space around the TV for a long time.
7. How you buy can and will affect your bottom line. Buying properly is very tricky as it should often be determined based off the demand of your clientele. I've seen stores where owners buy cigars for illogical reasons, and then two years later they still have the same 12 boxes sitting on their shelves collecting dust and generating no revenue. You need product that can sell. Buying $1,000 DuPont lighters is only a good idea if you have the customers who can afford and are willing to buy it. So, know your customers, and buy accordingly.
Those are just some of the many things to consider. Opening a new store can be difficult and expensive. Talk to cigar reps and other store owners. Take notes.
1) Will it just be a tobacco shop, or do you want customers sitting around and smoking? Do you want a real lounge? Alcohol or no alcohol lounge? If you want it just to be a grab-and-go B&M than you'll need less square footage, but lose certain types of customers.
2) Location is very important. The demographics of an area matter. It's preferable to be 5+ miles away from the nearest cigar store to limit your competition. Parking is also important. Bad parking can discourage people from coming.
3) How many facings do you want? Facings means how many SKUs you will have. I would recommend at least one back up box for each SKU. So, if you have 500 SKUs on the shelf you should have 1,000 boxes total at least. Some stores have more than one back-up box per SKU or depending on which SKU it is.
4) Make sure you have a good POS system as it allows you to manage inventory and monitor sales.
5) humidification and filtration are important.
6) The build out can be costly, so make sure you're efficient in using space. When designing the store you need to be smart about the space you have. The store I regularly go to has a wall with a TV, but surrounding the TV is unnecessary shelves with old magazines, a cappuccino machine (he doesn't charge for drinks), and junk. Nothing on that wall generates any revenue. Me and a couple regulars have finally talked him into putting lockers as he has the right demographics and demand. Those lockers can generate him $12k in revenue per year. He has been misusing that space around the TV for a long time.
7. How you buy can and will affect your bottom line. Buying properly is very tricky as it should often be determined based off the demand of your clientele. I've seen stores where owners buy cigars for illogical reasons, and then two years later they still have the same 12 boxes sitting on their shelves collecting dust and generating no revenue. You need product that can sell. Buying $1,000 DuPont lighters is only a good idea if you have the customers who can afford and are willing to buy it. So, know your customers, and buy accordingly.
Those are just some of the many things to consider. Opening a new store can be difficult and expensive. Talk to cigar reps and other store owners. Take notes.
TraderCigarCo.
Alex
Thanks for the input! Some things on here I haven't thought about before.
I use to work for Tobacco Lane in Arlington when I was in college so I have a bit insight to the area and business...
Biggest issue we had was the lack of smoking allowed. Even the shopping center was technically a smoke free area but people did anyways...
2nd if you do this, hire some enthusiastic and knowledgeable... 90% of our customers were totally willing to try something new on top of their regular purchases but only if you spent a min to talk with them.. I'd tell them something like " Everyones tastes are different, but hey let me show you one of my favorites..." After awhile they'd come in asking what I'm smoking this week... Great way to open people up to stuff outside factory throw outs...
Hit me up if you have any specific questions
Biggest issue we had was the lack of smoking allowed. Even the shopping center was technically a smoke free area but people did anyways...
2nd if you do this, hire some enthusiastic and knowledgeable... 90% of our customers were totally willing to try something new on top of their regular purchases but only if you spent a min to talk with them.. I'd tell them something like " Everyones tastes are different, but hey let me show you one of my favorites..." After awhile they'd come in asking what I'm smoking this week... Great way to open people up to stuff outside factory throw outs...
Hit me up if you have any specific questions
Now the real fun begins!!!!
It was a lot of work but the place came out spectacular. I will post some intetior pictures later after the cleaning crew is done.
I am looking to hire a couple of people, so if anyone knows someone who is looking for some hours working in a cigar shop, shoot me an email.
I do have a couple of pics on my face book page. Check them out.
It was a lot of work but the place came out spectacular. I will post some intetior pictures later after the cleaning crew is done.
I am looking to hire a couple of people, so if anyone knows someone who is looking for some hours working in a cigar shop, shoot me an email.
I do have a couple of pics on my face book page. Check them out.
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I'd work there in a heartbeat if I was in Jersey lol congrats !
Best of luck! 
