Input needed.

[hooligan]

Hi All,

I would aprecciate your input and maybe get ppl talking. I live in a small city with 1 cigar shop and a few cig/tobacco shops spread out. I'm thinking of opening a small shop dedicated to pipes/tobacco. Now for the question. If you were a customer what would you like to see in the shop? If you're lucky enough to have a shop in your area, then what are your like/dislikes?

Thanks.

 

[ghost45]

Samuel Gawith Blends.

Peterson Blends

And Mac Baren and Rattray blends at a cheap price.
Dr. Grabow pipes and A wide selection of Corn Cobs most of my tobacco shops only sell one style of Cob.

 

[cacooper]

Greetings,
Sorry to be the turd in the punchbowl, but speaking from 10 years of retail tobacconist experience, a pipe and tobacco only store will never turn a profit. Unless you stock and sell a large variety of cigars, there's just not enough local volume in pipe and tobacco sales to meet expenses. Cigars are the "bread and butter" of the tobacco business today.
If you own the building and have absolutely NO overhead, you might make it. Your best bet is to try an internet based business. Low overhead, low up-front costs, minimal inventory, and a worldwide customer base.
Retail brick and mortar tobacconists are fast becoming a thing of the past. Cherish and patronize the few that remain.
Good luck.
CACooper

 

[pipegangster]

Hello friend,
I have to agree with Mr. Cooper above. In my store, about 75% of my business comes from the sales of cigars. You would have to sell cigars in order to survive and make any kind of profit. Before I owned a brick and motar, I sold cigars and pipe tobacco out of my house on the internet. There was no overhead and it was a nice little side project. I suggest that you start out this way as well to see if (1) you would like the business and (2) if you could make any profit.
Hope this helps out and good luck with whatever you decide to do.

 

[dunendain]

Out here in California, the most popular B&Ms are the ones that have a small smoking lounge. Because the more that customers hang out, the more products they will buy. Also, you need a good bulk brand, like Stokkebye or Lane. The closest B&M to me, which I rarely patronize carries too many expensive tinned brands. It helps to have a good selection of the lower priced brands like S. Gawith and Dan. Hope this helps.

 

[sinistertopiary]

It's mighty brave to consider opening a tobacco shop in this day and age. The advice from cacooper and pipegangster seem very prudent to me.
If you're intent on opening a B&M dunendain's observation about a smoking lounge should be considered. There's a tobacconist in upstate New York I visit (whenever I'm in town to visit family) that has almost no pipe stuff except for a selection of Peterson & Ashton tins. But it has one thing that I expect will make it thrive in a declining industry, and that's its smoking lounge. It has two, in fact, a very nice public one with half a dozen or so big comfy leather chairs & TV; and a member's only area complete with locker rooms, huge TV lounge, a quiet room, and private meeting rooms. It's like a neo-men's club, a real haven for people (primarily men, to be honest) to have a place of their own to smoke & relax in. It's like a mini-country club for the tobacco set. And business seems to be very good & growing for them. It seems that businesses must appeal more and more to creating an experience if they want to differentiate themselves and have a chance of survival.
Kudos to you if you decide to go through with it, and the very best of luck!
(Oh, and as far as stocking stuff: quality tobacco like McClelland, SG, GLP, Esoterica; a good selection of pipes including Italians like Savinelli, as well as a few unusual ones just to keep it interesting; accessories like pipe racks, tobacco jars, lighters that actually work, humidifier dots & pipe cleaners.)

 

[ghost45]

Every time I go to McCranies the same guys are in there, and all of them are always in the same seat.

 

[hooligan]

I knew I came to the right place. Well the lounge is a great idea but out of my range for now I think.
Cooper&Ganster> Thanks for your input. I'm gonna mual over that internet idea. Sounds like the money would be put to better use there.
I appreciate everyones honesty and will keep you all in the loop.

 

[cacooper]

Greetings,
A little backround:
I closed my store, the Village Smoke Shop in Scottsdale, AZ in 2005 after a 10 year run. I stocked over 10,000 cigars, nearly 400 pipes, and around 100 different pipe tobaccos. I spent over $100,000 on the build-out and fixturing, plus inventory. All toll, about $350,000 invested. In reality, a fairly small sum to open a retail store. Most cigar store/lounge operations today run about $500,000 to 1 mil+ for start-up.
Deteriorating location, encroaching local competition, combined with an un-cooperative landlord, led to my decision to call it quits.
The tobacco business is tough, and getting tougher every day, due to increased regulation and taxation. Add the difficulties running any small, retail business day to day, and things can get overwhelming. Rent, utilities, insurance, inventory, payroll, license fees, tobacco tax paperwork, sales tax paperwork, advertising costs, shoplifting, etc. can kill off even the most determined entrepreneur.
My plans were to open a store/lounge here in Parker, CO. There is no other tobacco store within 20 miles. But the un-certainty of SCHIP and FDA has completely cancelled my plans. I'm just not going to invest hundreds of thousands of hard earned dollars into a business that, at the stroke of a pen, can be eliminated. I'm more than a little bitter about the situation, and the way the government has ruined my livelihood. I truly love the tobacco business, and I'll never have the chance to persue it again. I'm glad I at least had the chance for a little while.
I'm now making pipes and selling them via my website: www.PipeandPouch.com. My overhead is nearly zero, and I set my own hours. One thing I don't miss about retail is the 12-14 hour days, 6-7 days a week, with NO vacations.
A website is a good way to enter the business without a huge investment or time commitment. Just be sure to do your research regarding collecting tobacco taxes and reporting out-of-state sales of tobacco. The various state tax agencies can get VERY nasty when it comes to collecting "sin" taxes. Trust me on this one. The fines, for even honest mistakes, can be quite punishing. Again, trust me.
Best of luck, should you give it a go!
CACooper

Cooper Pipes

PipeandPouch.com

 

[dunendain]

A lounge can be a sofa, 2 chairs, and a television. Nothing fancy.

 

[sinistertopiary]

Dunendain is right. The incomparable Cup O Joes in upstate New York has a tiny little lounge you get to by walking through stacks of shelving. It's a nice little oasis with a few chairs, a TV, and nice lighting.

 

[hooligan]

Thanks for the lounge ideas. The cigar shop in my area has a small one. No tv, just some small chairs. I'm spending the weekend doing research. Tax costs, licensing, local tobacco laws, etc.

 

[atfan]

I not too long ago explored the concept of a small cigar/pipe shop that was going to be called "The root beer and checkers club" the plan was for a wood stove ,wide plank wood floors - there would be checkers/chess,wireless internet access ,homemade root beer and good coffee and BS knee deep but the hoops to jump thru regarding any business involving tobacco products and on-premise smoking were ridiculous-basically impossible....can always dream ,I guess.

 

[sapo59]

As sad as it seems the Internet seems to be the way to go. Taxes and all the other political nonsenses is making opening a B&M almost impossible. I'm in the same boat as many of you when it comes to going to a B&M. The closest one to me is an hours drive. The thought of opening one in my small town has crossed my mind, but with the Internet I think a online shop would be much better.

 

[sinistertopiary]

It may not be as personally rewarding, but I think you'll make your life a lot easier and more financially rewarding to go the internet route if you're determined to make a go of it. And who knows, if you're really successful you might find you'll have enough money and time to jump through all the hoops to open up that B&M after all. But the internet is definitely the horse to put before the B&M cart.
4noggins, one of the advertisers here, started out not too long ago and in seemingly no time has created quite a name for themselves in our community. Follow their example and you're bound to do well.

 

[dunendain]

Excellent example.

 

[hooligan]

Thanks again for the continued help. The internet idea is definitely something I'm looking into. Just don't know if I can be as competitive on the internet. I do know I can put more money into the internet than a B&M. Will keep you posted on how things go.