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Cigar Store as Business

K

kevpriest

Clueless Noob
Joined
Mar 14, 2005
Messages
490
I've done a search on the site, but couldn't find another thread that seemed to address this. What is your opinion of retail cigar stores as a business venture? It seems a lot of the excess has been worked off since the boom, and most of those still standing are making a little money.

Is product availability an issue still? Can you get on board with the big distributors, or are they still locking new guys out?

Is there still a local market, or has the Internet killed the margins?

Are the anti-smoking laws hurting things enough that there's too much risk to open new outlets?

I'm not talking about an online merchant here, I'm talking about a good, old-fashioned cigar store, with repeat customers and knowledgable staff. I've read some of the Tinder Box franchise info, but I was thinking more of an independent store. Is it a silly idea?

Thanks for any and all opinions,

KevPriest
 
I'd have a problem taking a hobby and making it a business. Just me though.

If I were you, I'd talk w/ Ian from billboardtobacco.
 
Every bit of this depends on your location. I could never live the way I do now owning a cigar store. Product is not a problem anymore, but tax rates, smoking bans and high lease rates in good locations has killed the tobacco retail industry. The internet hasn't helped a lot, in most cases, either.
 
With all of the smoking bans in effect across the country you would probably need to also have a smoking lounge in the store..... I actually tried to buy an established business a couple of months ago andthe deal fell thru. I think alot of the money you could make is in the lounge area... ;)
 
The comments regarding "don't make a hobby your business" seem to fly in the face of the other generally accepted wisdom "do what you love". What about the local tobacco stores you frequent? Don't they enjoy cigars with you and make solid recommendations based on their experience?

I'm with you on the "can't see living the way I do now" comment, so I gotta think that part over. ;)

Thanks!

KevPriest
 
My business started out as a hobbie, then turned to a business for me. I was working as an engineer when I started, so I had a pretty good cash flow to start. Inventory is expensive.. so be prepaired to dump a little cash in to the venture.

Nobody locks out retailers, Vendors are happy to work with you. You may be thinking about Fuente, they are ones who will want you to spend a boatload with JC Newman before giving you a fuente account. as for the rest, its no problem. We have accounts with all the major playors. Join the RTDA and you will be in with everybody.
Its a great business, and most the the people in it are great guys..
There are a few snakes though! :)
 
kevpriest said:
The comments regarding "don't make a hobby your business" seem to fly in the face of the other generally accepted wisdom "do what you love". What about the local tobacco stores you frequent? Don't they enjoy cigars with you and make solid recommendations based on their experience?
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Yep, it works for some. It would just be hard if it ever became a pain in the as* to keep the store up and running. That's when the hobby would become a nightmare for me.
 
bfreebern said:
Yep, it works for some. It would just be hard if it ever became a pain in the as* to keep the store up and running. That's when the hobby would become a nightmare for me.
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Alot of people really don't have an idea of what goes into running a store. Would it be an internet store or real store. Also, do you need a tobacco liscence in your state. Where do you live? What would be your competition?

If you really want to get into the business, I suggest checking out getting a Tinderbox Franchise. They've been in it for years, and can get you started on the right path. Plus, you don't have to do the nick-nack thing, just tobacco only. ;) :thumbs:
 
Yeah, I'm not too crazy about the German Figurine business. ;)

As I mentioned, I'm talking local, non-Internet business, and yes, I'd definitely need a tobacco license. The area I'm thinking of is kind of interesting, as there are probably half a million affluent males within 4 square miles, with a high-end golf course and a high end wine store, but no cigar store for 12 miles.

I'm just thinking about it, however, not saying I'm about to jump in. And I really appreciate the different info you guys have been willing to share.

KevPriest
 
OK, i don't know alot, but I'll chime in...

If you really have an interest; go for it!

Something to consider on location. I am under the impression that certain companies only give accounts to shops that are X miles away from another shop with an existing account. I may be wrong, but you would hate to get a place and have Padron or CAO say "sorry, but you are too close to 'XXXX Tobacco Shop'".


mdman said:
You may be thinking about Fuente, they are ones who will want you to spend a boatload with JC Newman before giving you a fuente account. 
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I am also under the impression the Fuente is currently not opening new accounts and so new shops must go through the distributers....
 
I would not go with a Tinderbox Franchise, I checked them out before and they want a boatload of money, plus they make all the decisions.. from design, paint and products. so you end up being an employee of them. for the money they want, you can open your own business and do it your way.

Fuente is always saying they are not opening up new accounts.. or (Your next on the list) of course when they opened up Casa Fuente they are stocked with everything! Its all about who you know when them. Padrons are a great account to have, they only require that you have a retail shop.

Just get an Ashton account and you will be fine. We have a JC Newman account also, but that stuff just does not move like other products, so I dont see any reason to persue it.

Im not buying a bunch of crap just to sell a few hemi's.

Then there is CAO. I will never sell another CAO as they tried to Price Fix with us.. so F**k them. LOL
 
"I would not go with a Tinderbox Franchise, I checked them out before and they want a boatload of money, plus they make all the decisions.. from design, paint and products."
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That's completely different than what I've seen ;)

And for the fuente thing, you order with a newman account, I don't know of ANY shop that has a "fuente" account, except maybe Casa Fuente.
 
Thanks guys, for all the great info. I'll keep looking into it. Right now it's just sort of a day dream, but you never know. I've got a few properties I could sell, and then, maybe...
 
I will say this and yes it has too do with location. Where I work there was a brother's cigar bar which was nice and the prices were ok. They decided to move across town about a year ago. Now they have a large cigar shop going in across the street from them with better prices, more selection, and better attitudes. I dont see them being open much longer than a year.
 
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