Greetings all,
Sad to hear that another tobacconist has closed. This seems to be a daily occurrence.
As the former owner of a tobacco shop, Village Smoke Shop in Scottsdale, AZ, I know the feeling. I shut my doors in 2005, after a 10 year run. I leased a space ($3200 mo. base rent), and after ever increasing rent and CAM fees, encroaching competition, and an uncooperative landlord, I finally decided to throw in the towel and close. I did learn a few things, though.
In this day and age, in order to have a chance at success in the tobacco business, you absolutely MUST OWN THE BUILDING! Preferably a stand alone structure. You must control your overhead expenses. Under my lease agreement, my rent automatically increased 5% per year. Maintainence, taxes, and insurance increased also. If I didn't grow the business by at least 5% a year, I would lose money, and I did.
Almost all successful tobacconists existing today own the real estate. Iwan Ries, McCranies, Edward's and Stag here in CO. All own their buildings.
The days of renting a space in a strip mall are over. Most landlords won't rent to a tobacco shop anymore because of odor complaints from other tenants.
Add all of the above, along with ever increasing taxes, smoking bans, and the coming FDA regulations, and it's amazing anyone is in the business anymore. Sad days, indeed.
The internet is the only affordable place to conduct business anymore, tobacco wise. For now. But that will change too, sorry to say.
Sorry to be a turd in the punchbowl, but this is the reality of the tobacco business in these "enlightened" times.
Stock up, and stack deep. And patronize your local tobacconist, while you still can.
CACooper