The taxes and regulations are killing B&Ms. Another possibility would be to open a smoking lounge and charge membership. Sort of the "Costco model": most of their profit comes from the sale of memberships.
What Would It Take?
- Thread starter texmexpipe
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Here in the mighty WA, our tax rate is 95%(!!) of MSRP. So if a tin of tobacco has an MSRP of $10, you can find it online for... oh $6.50-$7.50. But in the wonderland of WA, the taxes on that tin alone here at a B&M is $9.50 before they even assess the real cost and profit margin (small).
WA then decided to protect their businesses by making it a felony to mail tobacco from a business to a customer. So to the uniformed, they walk in and pay $23 for that $6.50 tin of tobacco. Luckily, the Tinderbox in Tacoma has been around forever and sells a shit ton of cigars to cover their costs.
WA then decided to protect their businesses by making it a felony to mail tobacco from a business to a customer. So to the uniformed, they walk in and pay $23 for that $6.50 tin of tobacco. Luckily, the Tinderbox in Tacoma has been around forever and sells a shit ton of cigars to cover their costs.
Oh Yes, WYfBane your State tobacco policies are identically similar to ours here in scandinavia,governement doing all that any B&W are forced to shut down in years to came,thats their main plan.
Since I started smoking I have dreamt of opening up a b & m. But as others have said I'll wait till I already have a fortune. It will probably be more like a barn in my back yard with couches and ashtrays with tobaccos to buy. Like a speakeasy. I'd just like to have a place guys can get away out of the weather and smoke away.
Having owned a shop during the boom years from 1995 to 2005, I've toyed with the idea of opening another shop. That is until Obama signed the FDA regulations into law. That put an end to any plans I had. Back during the cigar boom, it was tough enough to make profit dealing with internet and local competition, but it was do-able. Now, you have to deal with all the above plus crippling FDA regulations. No thanks. I'll be damned if I'm going to invest upwards of a $1,000,000 (stand alone building, fixtures, inventory, insurance, property taxes, corporate taxes, building maintenance, employees, licenses, etc.) to have it all wiped out by a stroke of a pen.
If all you're looking for is a place to relax with a few friends, better to construct a Man Cave, then fix it up the way you like. Fireplace, comfy furniture, fridge full of beer, card table, satellite or cable TV, HVAC, etc. Also a place to cellar your tobacco. Perhaps a tobacco bar with a scale for blending tobacco, since that will be illegal at B&M's soon. A nice humidor for cigars would be nice. Basically your own private tobacco shop without the worries, stress and hassles of owning a business, demanding that you make a profit. Which will be increasingly difficult in the future. My heart goes out to anyone remaining in the business. God bless them.
A similar situation exists in the UK with the banning of smoking in pubs. Folks have converted outbuildings, garages and spare rooms into private pubs, complete with bars, draft beer and dart boards. And, of course, ashtrays. They meet there after work and enjoy a pint and a smoke, unmolested by government nannies.
I enjoyed my decade in the business and wish things were different so I could continue working at my preferred vocation. But Fundamental Transformation takes many forms, the FDA tobacco regulations being just a small part of it. I've had to adjust to it and pursue another less satisfying and rewarding line of work. Real Estate may not be my passion, but it is less stressful, and far more profitable.
Good luck in your pursuits.
If all you're looking for is a place to relax with a few friends, better to construct a Man Cave, then fix it up the way you like. Fireplace, comfy furniture, fridge full of beer, card table, satellite or cable TV, HVAC, etc. Also a place to cellar your tobacco. Perhaps a tobacco bar with a scale for blending tobacco, since that will be illegal at B&M's soon. A nice humidor for cigars would be nice. Basically your own private tobacco shop without the worries, stress and hassles of owning a business, demanding that you make a profit. Which will be increasingly difficult in the future. My heart goes out to anyone remaining in the business. God bless them.
A similar situation exists in the UK with the banning of smoking in pubs. Folks have converted outbuildings, garages and spare rooms into private pubs, complete with bars, draft beer and dart boards. And, of course, ashtrays. They meet there after work and enjoy a pint and a smoke, unmolested by government nannies.
I enjoyed my decade in the business and wish things were different so I could continue working at my preferred vocation. But Fundamental Transformation takes many forms, the FDA tobacco regulations being just a small part of it. I've had to adjust to it and pursue another less satisfying and rewarding line of work. Real Estate may not be my passion, but it is less stressful, and far more profitable.
Good luck in your pursuits.
On the plus side, as predicted by yours truly, the dot-com boom 3.0 is heading for the pavement:
https://news.slashdot.org/story/16/10/14/1613238/2016-has-been-an-ugly-year-for-tech-layoffs-and-its-going-to-get-worse-says-analyst
The warning signs were always strong, but now they are much stronger. I do not think it is simply because of a move to the cloud, but more ominously, that high-value consumers are moving away from the internet and its ad revenue model is collapsing.
Let the herd in, and what you have becomes devalued.
https://news.slashdot.org/story/16/10/14/1613238/2016-has-been-an-ugly-year-for-tech-layoffs-and-its-going-to-get-worse-says-analyst
The warning signs were always strong, but now they are much stronger. I do not think it is simply because of a move to the cloud, but more ominously, that high-value consumers are moving away from the internet and its ad revenue model is collapsing.
Let the herd in, and what you have becomes devalued.
There are income tax free countries that would be very low cost to start up. and you would have zero competition.
I like the speakeasy idea too. Maybe run it by barter so that it is totally legal. Swap tobacco for ammo, then if you sell that, it is an unrelated transaction.
Very intresting topic, lots of information to take in, I have never owned a bussines, but this has open my eyes quite a bit, the only b&m that I see atound, are the old school ones, that has been opened up a long time ago, one way to start a B&M shop is to inherit the shop or know the owner and let him sell you the shop to you .
Check his books first, both sets :puffpipe:, to insure that there is enough money coming in to handle the note you will have to service. You'll no doubt have to increase the bottom line as you will have a higher overhead than the previous owner.
I like the idea of a pipe shop in another country, possibly a third world. Maybe Texas? Do they have taxes there? :wink:
Tall tree short rope.
My B&M has been there for 80 or more years, has a lounge, the whole taco. I have never asked but I get the idea the help is all part timers working for the discount smokes. Never seen the owner, may be out of state at this point. He has a goldmine in a young single guy who has grown up in the establishment and runs it out of love, I think, more than anything else. He cannot be making any real money. Everyone else has covered the liabilities so there you are. Back to the drawing board. "Starving artist" was a name originated out of fact.
My B&M has been there for 80 or more years, has a lounge, the whole taco. I have never asked but I get the idea the help is all part timers working for the discount smokes. Never seen the owner, may be out of state at this point. He has a goldmine in a young single guy who has grown up in the establishment and runs it out of love, I think, more than anything else. He cannot be making any real money. Everyone else has covered the liabilities so there you are. Back to the drawing board. "Starving artist" was a name originated out of fact.
Tall tree short rope.
My B&M has been there for 80 or more years, has a lounge, the whole taco. I have never asked but I get the idea the help is all part timers working for the discount smokes. Never seen the owner, may be out of state at this point. He has a goldmine in a young single guy who has grown up in the establishment and runs it out of love, I think, more than anything else. He cannot be making any real money. Everyone else has covered the liabilities so there you are. Back to the drawing board. "Starving artist" was a name originated out of fact.
My B&M has been there for 80 or more years, has a lounge, the whole taco. I have never asked but I get the idea the help is all part timers working for the discount smokes. Never seen the owner, may be out of state at this point. He has a goldmine in a young single guy who has grown up in the establishment and runs it out of love, I think, more than anything else. He cannot be making any real money. Everyone else has covered the liabilities so there you are. Back to the drawing board. "Starving artist" was a name originated out of fact.
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