A couple of questions about selling cigars

[Texan_n_hell]

Hi all. This is only my second post, but I have been lurking for awhile now and find this to be the most informative cigar site out there. Which leads me to ask a few questions.

A friend of mine who owns a few taverns here in town wants me to set him up with a display humidor and cigars. The good part of the deal is that I get ½ of the profits for selecting and maintaining the cigars. The bad part is that I have no idea on where to start. Actually I did find some display humidors but that’s as far as I got. So here are my questions:

1.) Does anyone know any wholesalers/distributors? I could buy from my local shop but I would really like to charge a fair price and still earn some beer money.

2.) Also any suggestions on the selection would be awesome. I prefer a full-bodied smoke and I’m not really to familiar with light medium bodied smokes. I think the typical name brands (Macs, Cohiba, Montes et. Al) would be best simply because of name recognition.

That’s all I have for now. Thanks in advance for all of your help.

 

[TheBeast]

How big is the display humidor? Are you stocking boxes or singles? How much inventory will you be needing and working with? ???

 

[Texan_n_hell]

Sorry bout that.

I was Looking at a 120ct humidor. And selling about6-8 different types of singles.
I'll be starting out with 3 bars. So probaly about 3-4 boxes of each.

 

[TheBeast]

I guess you could find the cheapest source on the web...maybe JR's and buy from them. The prices are far less than they would be from your local tobacconist. You should beable to work in a reasonable mark up that wouldn't look to high to the customer and you guys can make a little profit. (Just thinking off the top of my)

 

[Lumberg]

I think the typical name brands (Macs, Cohiba, Montes et. Al) would be best simply because of name recognition.

I agree. I woudl go about 3/4 recognizable stuff and 1/4 stuff you like or interesting/non-recognizable stuff.

I agree with the JRs idea too. You can buy them at 60% of retail and simply sell them at retail.

 

[CoventryCat86]

I think the typical name brands (Macs, Cohiba, Montes et. Al) would be best simply because of name recognition.

Sounds like a pretty good plan. This is the type of venture where you won't have to lay out tons of money to try it and see how it goes.

As Lumby pointed out, you can get lots of cigars by the box from the big internet discounters, sell them at retail and you should do okay.

Good luck :thumbs:

 

[Monte]

Is you buddy able / permitted to sell cigar on site? Or is this under the table so to speak.

 

[ShadMan]

That's what I was going to ask...Do you have to have a permit to sell tobacco products? I know a couple establishments I could get a humidor into around the Houston area if a permit is not required.

 

[Tony Bones]

Here's my two cents:

In a bar, you're often selling cigars to people who don't normally smoke them...or do so very rarely. That said, pick sticks that are mild and smooth. Although I love strong, spicey stuff...Joe Average McSixpackenstein doesn't generally dig an ass woopin' from his smoke. He just wants to be the "cool" guy who is smoking a cigar

For what it's worth, I worked in an upscale bar/club that did this very thing for my last two yr.'s of college. In fact, ask Moki about this bar. He puked on the deck there once...maybe twice :sign:

 

[moki]

For what it's worth, I worked in an upscale bar/club that did this very thing for my last two yr.'s of college. In fact, ask Moki about this bar. He puked on the deck there once...maybe twice :sign:

Erm... I deny everything... since I don't remember it, it never happened.

 

[mhn]

For what it's worth, I worked in an upscale bar/club that did this very thing for my last two yr.'s of college. In fact, ask Moki about this bar. He puked on the deck there once...maybe twice :sign:

Erm... I deny everything... since I don't remember it, it never happened.

how come that excuse never flys with my wife??

:sign: :sign: :sign:

DETAILS...WE WANT DETAILS!!!!!

 

[Texan_n_hell]

Well it looks like the internet is the way to go for now. Also the tax issue doesn't look to bad with cigars($.09-.30 per ten sticks, not sure how that works) and a tobacco license in Oklahoma is only $5 plus a $500 bond.

And last night I was downtown at a pub and I told the owner of that place about my venture and he ask me if I could do the same for him. So now I'm up to 4 bars now. Who knows this might be very feasable.

 

[sir-smokes-a-lot]

For what it's worth, I worked in an upscale bar/club that did this very thing for my last two yr.'s of college.  In fact, ask Moki about this bar.  He puked on the deck there once...maybe twice  :sign:

Erm... I deny everything... since I don't remember it, it never happened.

how come that excuse never flys with my wife??

:sign: :sign: :sign:

DETAILS...WE WANT DETAILS!!!!!

it's like a rule dude,

if you do not 'remember it', then it didn't happen.
:sign:

 

[sir-smokes-a-lot]

Here's my two cents:

In a bar, you're often selling cigars to people who don't normally smoke them...or do so very rarely. That said, pick sticks that are mild and smooth. Although I love strong, spicey stuff...Joe Average McSixpackenstein doesn't generally dig an ass woopin' from his smoke. He just wants to be the "cool" guy who is smoking a cigar

For what it's worth, I worked in an upscale bar/club that did this very thing for my last two yr.'s of college. In fact, ask Moki about this bar. He puked on the deck there once...maybe twice :sign:

Have to agree with this.
My guess would be:

Cohiba
Montecrisro
Partagas
Macanudo
and then maybe another one or two.

all of these brands are pretty well known to people so if they go to the bar and see Cohibas, they'll grab 'em up. happened at the club/bar I worked at this summer. the occasional cigar smokers always came in with one of a few brands.

 

[Allofus123]

The $5 permit you are talking about refers to handlers who buy untaxed tobacco directly from the manufacturer. You will not be able to buy from the Manufacturers with the setup you're describing.

I'd strongly advise you to talk with a lawyer who deals in business law before attempting this.

 

[Monte]

If you have a good friend that happens to own a cigar store or the owner is willing to do this....

you could operate under their license.

If not, talk to a cigar whole seller and see what requirements they have to sell to you as a "vendor". The permit should let you by from a whole sell company like Famous Smoke Shop and many others.

 

[Allofus123]

If you have a good friend that happens to own a cigar store or the owner is willing to do this.... you could operate under their license.

The permit should let you by from a whole sell company like Famous Smoke Shop and many others.

Monte, do you know what the legality consequences would be of using someone elses license in this state? I'll be the first one to say I don't know. Since the sale of tobacco involves both State and Federal regulations any advice more than contacting a business lawyer to cover your a$$ first, IMO, would be bad advice.

I'm sure everyone means well with their advice.....

BTW, Famous Smoke Shop is not a whole seller.

 

[benjiev]

I agree with Allofus TnH you need to call the State and do some inquirying with people from licensing and revenue. Generally they are very helpful if you explain your situation and ask them what you will need to do bidnez.

If there is one thing any state hates it loosing revenue :0

Major fines and who knows what else in that great state of yours ???

Your buddy who owns the bar may be able to help but it is you whos neck is on the line so do your homework first. Who knows if it works for him you can expand the biz to other bars in the area

BenjieV

 

[TheBeast]

I'm sure everyone means well with their advice.....

Hey, my advice was assuming any individual would check with there local regulations prior to starting any business. That seemed logical anyway. ???

 

[Texan_n_hell]

Thanks guys, I did leave a message with an attorney friend hopefully he'll get back to me soon. Staying within the letter of the law is my number 1 priority. I hope dealing with all the forms and fees , tax issues etc.. will still keep this a positive idea after all is said and done. I mean I just wanted to make an extra cnote a week. But who knows? This may be the beginning of something life profitable, or an example of how the government makes it too difficult to start a business. Time will tell