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Cigar Shop Owners

T

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Mar 18, 2005
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After being layed off a year ago and getting tired of unsuccessful job hunting, I have been thinking of opening my own business. My background is business finance and customer support.

What I was hoping to get here is some tips, advice, start up cost estimates (for build outs, etc) for a retail cigar shop and cigar lounge.

I am in the early stages of developing a business plan and, yes, I know this is a hard road, but any input would be appreciated.

Thanks!

Jim
 
Jim to give you an idea, you will need $200k to $300k for product. That does not include your build out. May manufacturers are not opening new accounts ie Fuente & Padron to name a few. You will find that other companies like General Cigars & Altadis cigars will open an account but will require that half your humidor is devoted to their products, some of which sell and some of which dont. Davidoff will require that you purchase all their other brands (avo, griffins, etc.) before making you a white label dealer. Ashton will also open you up but forget about VSG's & ESG's. There are many smaller companies that will definietly go out of their way for you (camacho, miami cigar, cao, la flor dominicana, puros indios, oliveros). I can go on & on. It you would like, give me a call and we can discuss in further detail. I am always open to helping out new store owners.
 
If you decide to go that route, make sure you let me know. Alpharetta's not far at all for me. :)

I've given it quite a bit of thought myself (intown, not burbs), but I think I've talked myself out of it for now.
 
Franchising might be an option available to you. Then you should be able to get in on the manufacturers that are not opening new accounts. One of the larger local companies here is dabbling in franchising in other areas. If you want their info I'll PM it to you.
 
gmiranda33 said:
Jim to give you an idea, you will need $200k to $300k for product. That does not include your build out. May manufacturers are not opening new accounts ie Fuente & Padron to name a few. You will find that other companies like General Cigars & Altadis cigars will open an account but will require that half your humidor is devoted to their products, some of which sell and some of which dont. Davidoff will require that you purchase all their other brands (avo, griffins, etc.) before making you a white label dealer. Ashton will also open you up but forget about VSG's & ESG's. There are many smaller companies that will definietly go out of their way for you (camacho, miami cigar, cao, la flor dominicana, puros indios, oliveros). I can go on & on. It you would like, give me a call and we can discuss in further detail. I am always open to helping out new store owners.
Click to expand...
some great info here.
 
I am aware of some of the vendor costs and issues, but what about the store itself. Looking at maybe 1400 sq ft.
-300 sq ft humi, 300 sq ft retail, 500 sq ft lounge, 300 sq ft office/storage???

Reasonable? Any idea what sort of costs for bulding the humi, humidification and air handling?


Thanks again!
Jim
 
Jim all of my stores in miami are entirely humidified, down here we dont need walk in humidors. My recommendation would be if you are going to be a cigar store and your main source of money is coming from the cigars you might want to go like 400 sq ft. for the humidor.
The humidification system we use is an Aprilaire, they come in different sizes. Hope this helps.
 
bmd34202 said:
Franchising might be an option available to you. Then you should be able to get in on the manufacturers that are not opening new accounts. One of the larger local companies here is dabbling in franchising in other areas. If you want their info I'll PM it to you.
Click to expand...

check tinderbox. :thumbs:
 
gmiranda33 said:
Jim to give you an idea, you will need $200k to $300k for product. That does not include your build out. May manufacturers are not opening new accounts ie Fuente & Padron to name a few. You will find that other companies like General Cigars & Altadis cigars will open an account but will require that half your humidor is devoted to their products, some of which sell and some of which dont. Davidoff will require that you purchase all their other brands (avo, griffins, etc.) before making you a white label dealer. Ashton will also open you up but forget about VSG's & ESG's. There are many smaller companies that will definietly go out of their way for you (camacho, miami cigar, cao, la flor dominicana, puros indios, oliveros). I can go on & on. It you would like, give me a call and we can discuss in further detail. I am always open to helping out new store owners.
Click to expand...

hey jim. i was excatly where you where you were about 6 weeks ago. today im halfway finishing out my store and have about 1/2 of my product in. gmiranda has some good points, but from my own dealings recently ive found his accounts pretty off base from my accounts. maybe its a regional thing. he has a shop so he obviously has more insight than me, but like i said ive gotten all those questions answered recently first hand myself. if you need anymore advice, just pm me.
 
Jim, call me. I'll tell you all about the pros and cons here in the ATL.

Al
770-908-9388
 
Local store here is francising and is a commercial contractor so he would be able to answer your construction questions. Is currently building a new store now in Indiana and has plans for one in Arizona. PM me if you are interested in a francise... Would have to be cheaper than Tinderbox.

Great walk in, VIP lounge, lockers, + pressure air system for the lounge.

you would order directly from them so the per stick would be cheaper than going it alone.

fyI, This is the best store I have seen and I have seen dozens in several states.

Note: I have no finacial stake in his business.
 
Thanks for the replies and PMs (keep 'em coming!).
Still a 50/50 chance on this.
Been estimating costs and, although it may be a little tight for me for a couple of years, I think I would be happier than going back to the corporate world.

Jim
 
Good luck to you on your venture.

Not wanting to go back to work in the corporate world is not a good reason to open your own business, although I can relate to that feeling. You better be the most passionate person about cigars around if you wish to succeed, and you better love what you are doing, and you better love dealing with people. It is going to be tough the first year or maybe two. Try real hard to get direct accounts with all of the vendors. You will not be able to live on the margins that wholesalers provide you. Open up a couple accounts with wholesalers, as you'll need them for picking up "a box of this and a box of that". As far as inventory levels to open, if you are basically going to be a Brick and Mortar, then $50000 will get you a great selection of cigars and accessories, and even some pipes and tobacco, and specialty cigarettes. If you are going to do alot of biz online, then you'll need alot more inventory than that.
 
Just thought I'd update ya'll...

I signed the lease this week and expect to open in August.
Details to come soon!

Jim
 
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