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Nashville Cigar & Pipe Shop for sale

(33 posts)
  1. jacks6

    jacks6

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    https://nashville.craigslist.org/bfs/5549798436.html

    Elliston Place Pipe and Tobacco has put itself on the market for 50k. I've never been here but it looks like a place I would have loved to visit - seems like a good selection.

    Posted 3 years ago #
  2. texmexpipe

    texmexpipe

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    I would love to do this! I'm in no position to do so, but if I were a change of careers would come quickly.

    Procrastinate Later. - I'll say this one day!
    Posted 3 years ago #
  3. pylorns

    James Foster

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    Who wants to buy a shop in this environment?

    Posted 3 years ago #
  4. perdurabo

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    Why are they selling it.?

    It's not my position nor want to help another man. It's his responsibility to help himself, as where he can learn to dig down deep enough to save himself. -I. Kidd
    Posted 3 years ago #
  5. jacks6

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    My guess would be this new regulatory environment. Could be other reasons though. I don't know.

    If times were different I would have loved to do this.

    Posted 3 years ago #
  6. jefff

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    It's 50k PLUS inventory. That means 50k for "blue sky"

    Blue sky is what they call a brand in the auto bizz. They are looking to sell you all the stuff and throw 50 on top.

    Given the physical location, that may or may not be a fair deal.

    Posted 3 years ago #
  7. jmatt

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    Not necessarily "just" blue sky. If the distribution rights do in fact transfer to a new owner, those rights have some value. Maybe you call that "blue sky" as well? In any event, that might be worth it. But it really depends on their proven bottom line. And what they want to claim their inventory is worth. Because it's always worth less than wholesale. As by definition, the best of everything is already sold. What's usually left is the stuff people don't want to buy that should be marked down to 30%.

    Posted 3 years ago #
  8. shaintiques

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    I've been there. It's a decent shop because of the selection but the placement doesn't make it walk in friendly and there is no lounge.

    I know what I need, smoke, I can't recall the last time I tasted it....Gandalf in the mines of Moria.

    "we shall have to share pipes, as good friends must at a pinch'....'I keep a treasure or two near my skin, as precious as rings to me. Here's one: my old wooden pipe. And here's another an unused one...He held up a small pipe with a wide flattened bowl, and handed it to Gimli. 'Does that settle the score between us', said Merry. 'Most noble hobbit, it leaves me deep in your debt."
    Posted 3 years ago #
  9. phil67

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    Lounge, no lounge, and or however well the stock is. There is no way on earth I would ever invest money (if I had it) in a B&M tobacco store given the shaky grounds of the FDA sticking their noses and making laws where they have no right to do so. It's a terrible shame, but there it is like it or not.

    ~I started out with nothing, and still have most of it.~
    Go to Heaven for the climate, Hell for the company. Mark Twain
    Posted 3 years ago #
  10. mso489

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    The terms of the lease and any proposed or approved changes to the area would be big considerations. Plus the inventory would have to be negotiable in terms of prices. The lack of a lounge doesn't sound as problematical as the lack of walk-in traffic. This sounds like a big gamble, for someone who doesn't need to earn a living and could walk away, accept the loss, and live on other income. Not many could. The FDA action may not be a poison pill, but it's an unknown that could be.

    Posted 3 years ago #
  11. cosmicfolklore

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    In this world where we can buy tobaccos for the exact same price as the B&M has to (-retail markup), impending FDA regulations, and taxes, this would be like trying to sell your VCR repair business or fax machine services. Unfortunate I see very few B&M's starting up soon... by a smart person anyways. So, we should embrace and encourage our existing B&Ms even more to keep them around, IMO.

    Michael
    Posted 3 years ago #
  12. iamn8

    Nate

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    So buy it Cos!! I promise to buy at least two tins from you

    Nate @ Moody AL
    Posted 3 years ago #
  13. cosmicfolklore

    Cosmic

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    So, you're saying I'm an idiot? Ha ha. Maybe you are.
    No, I am in transition to retiring out of my current business. And, if I had it all to do again, I would never ever try to own my own business, especially retail.

    Posted 3 years ago #
  14. iamn8

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    Yeah I hear you!! I did it for five years and that was more than enough! It's insanely hard! And the pay is crap.

    Posted 3 years ago #
  15. cosmicfolklore

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    Yeh, and everyone in the community thinks that because you own a business that you are rich, ha ha. And, with everyone buying more and more online, it's a boldly stupid move, IMO. It boils my blood when a customer comes in and wastes an hour of my time, getting sized, learning about stones and metals, and then tells me, "thanks, but I will just order it online to save money," as if I have an option to compete with online. I can imagine that tobacconists of B&M's get just as frustrated with the same thing, people thinking that online priced are the norm.

    Posted 3 years ago #
  16. briarcudgel

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    Online purchasing, as wonderful as it is, is killing the B&M retailer. Hair and nail salons being one of the exceptions. The Internet has changed the business model completely. Buying a retail only tobacco shop in this day and age is akin to burning your money. Going to miss these stores, though.

    Posted 3 years ago #
  17. cosmicfolklore

    Cosmic

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    Yep, and online shopping is killing jobs. Four guys and a warehouse now moves way more product than dozens of retail stores.

    Posted 3 years ago #
  18. briarcudgel

    briarcudgel

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    You are 100% correct.

    Posted 3 years ago #
  19. jefff

    jefff

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    Which is why I continue to support Iwan Reis. I split my purchases between them and online because I can afford to spend a little more and put my
    Money where my heart is.

    It's the same reason I will never shop at Walmart. I can afford to support what I feel are more worthy stores.

    Posted 3 years ago #
  20. iamn8

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    Yeah the only B&Ms that will survive are those with a very strong online presence. That's the perfect B&M, a mostly online seller that uses a storefront in a major city.

    Posted 3 years ago #
  21. cosmicfolklore

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    the only B&Ms that will survive are those with a very strong online presence

    Not true, exactly. For selling pipes, yes maybe. As long as the store finds its niche. But, how can any store offer prices for less than the original wholesaler on tobacco (unless they just choose to sell it at cost, no profit), when the wholesaler has chosen to compete with you? The main online venues that we go to to buy tobacco, are also the wholesale distributors for various blends. Plus, those strictly online venues don't have retails costs to pay. A storefront is way more expensive to maintain than a warehouse.

    The one thing that a B&M has to offer is location. I can go to The Briary on a day off and set and meet the most interesting people in Alabama. Various pipemakers will drop in. The owner is very entertaining. And, someone will invariably come in with something interesting with a lot of age on it to share. It's always a lot of fun. You get to meet new pipesmokers, show off pipes, and talk tobacco... in analog.

    Posted 3 years ago #
  22. mso489

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    The only way into pipes and tobacco would be to find a niche no one else occupies (there's a tall order); start out online; and if it catches on, and you want to do so, establish a very low-overhead physical location. Low exposure to loss. I'm hallucinating.

    Posted 3 years ago #
  23. pylorns

    James Foster

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    Retail stores that have more to offer, like an amazing lounge - you make the place an experience - where people can go and smoke, then they come back... I think thats the only way to open up a new B&M these days.

    Posted 3 years ago #
  24. pappymac

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    We have a small B&M cigar shop in town that carries some pipes by makers I've never heard off in the $50 - $90 range and about 20 different bulk pipe tobacco's from Scandinavian Tobacco. It started out with being 60 percent cigars but then it expanded and now the cigars and pipes make up about 15 percent of the floor space (15x15 square foot walkin humidor) and the rest is wine, liquor, craft beer, boutique type gifts and a small deli sandwich shop all rolled into one. At one time they did have a small smoking lounge area but the state nanny's put an end to that. Point is they will stay in business because they diversified. The place is always packed at lunchtime and I've seen a lot of women in there buying cigars for their husbands/boyfriends.

    My dream is to win the lottery and build two small shops connected by a covered open air patio. One shop would sell fresh roasted coffee beans, coffee and some donuts and pastries. The other shop would sell pipes and pipe tobacco and other manly type gifts including a small selection of cigars. Customers could take their purchases and sit in comfort on the covered patio rain or shine. Oh! This would be sort of off the beaten path so I wouldn't have to worry about dealing with people interrupting my pipe smoking.

    I am glad we have a good admin and responsible moderators.

    Heave to you dark colored ship under sail! Prepare to be boarded!
    Posted 3 years ago #
  25. perdurabo

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    It's called competition, Online retailers are winning a competition. But, I still get my B&M to order Escudo and Royal Yacht.

    Posted 3 years ago #
  26. jacks6

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    Pappymac, I hope that you win the lottery. That's a B&M that I would visit!

    Posted 3 years ago #
  27. cosmicfolklore

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    Peradurabo, competition is good, but when the wholesale competes against their retailers, an unfair balance is set into place. There are still some blends that are not competing, by having distributors that do not sell online. But, this is not exclusive to pipe tobacco. My own distributors are undercutting me as well. Even a few artists compete with me on their own products. We already see a huge decline in many different types of B&Ms on main streets. As more and more people become more comfortable buying online, we'll see more empty buildings and less jobs.

    Posted 3 years ago #
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    If there's a viable B&M modus operandus, it would likely involve putting a cartel of pipe crafters together who would agree to wholesale only to the B&M (or B&M chain) to move the production they couldn't retail themselves, and a similar marketing agreement for tobacco manufacturers. Point being that they would turn down Walmart-style bulk orders @ steep discounts so if the big dogs would undercut the B&M(s) it would have to be at a loss.

    The kicker would be coming up with competitive offerings in both.

    Posted 3 years ago #
  29. cosmicfolklore

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    Bill, the problem there is that the majority of pipe shops don't carry high end or artisan pipes. Most that I go into just have bucket pipes on the wall like they're some kind of great pipe, and maybe a section of crappy Petersons from the early 90's that no one ever bought. However, there are a few pipe gallery type places. Besides, most pipemakers get started by dealing directly with customers, and they don't have a lick of business sense and no business plan to speak of. They charge cheap to make a quick sale, because of the thrill of the sale. So, when a retailer asks for a wholesale price from them, they can't go any lower. And, no B&M in their right minds is going to pay the artists retail price. They'd never make keystone because their customers would just buy dirrect and undercut the B&M, leaving them with unsalable dead weight. This is why you'll see more international artists in B&Ms. They know business, they have a business plan, and their names become branded more easily. Plus, it's harder for an American customer to buy dirrect from them. Most don't even talk to customers, except at events. They make more money, and the B&Ms make more money.

    But, the American pipe artists seem to be hanging on, even if it is at the detriment of the B&Ms.

    Posted 3 years ago #
  30. jefff

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    Reis has an absolutely wonderful selection of pipes. But with a 10% sales tax in the city of Chicago it makes a high end purchase even higher.

    They are competitively priced until they add the tax. Same thing with tobacco.

    I don't know how much longer they can stay in business.

    Posted 3 years ago #
  31. cosmicfolklore

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    There are places that don't charge a 10% sales tax? Everywhere here in Alabama charges 10%.

    Posted 3 years ago #
  32. deathmetal

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    Online purchasing, as wonderful as it is, is killing the B&M retailer.

    I think this is true. If I were a local or state authority, I would consider relaxing taxes so that local businesses can compete.

    Another problem here is market concentration. There are many small merchants, but only one Amazon, Wal-mart, Uber/Lyft, iTunes, App Store, or Facebook. If those companies collapse -- which is likely because their profit models are weak -- or raise their prices, the consumer is at least temporarily screwed.

    "My own experience has been that the tools I need for my trade are paper, tobacco, food, and a little whiskey." -- William Faulkner

    The Metal Mixtures
    Posted 3 years ago #
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    They'd never make keystone because their customers would just buy dirrect and undercut the B&M

    a two-way non-undercut agreement would necessarily assumed in that.

    Artisans ? Maybe. Probably. But where I'd envision the bulk of their sales coming from would be the kind of budget lines that are starting to appear that would challenge Peterson & Savinelli at their retail price levels. Classic shapes, no doodads between the shank and the stem, &c. Just solid, no-frills good smokers. That $75 - 200 range would be (I'd assume) most of the pipe sales are anyhow.

    Same philosophy with tobacco -- solid, good-enough bulks that the savings offset the marginal loss in perceived taste refinements.

    Expand from there if need be.

    Posted 3 years ago #

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