Re: My store is opening a lounge but we need some help...
 

The shop is Tobaccos of Hawaii.
The biggest issue I'm worried about is that I remember the last lounge that recently closed on the island. They didn't charge to sit and smoke but their customers didn't buy anything. At times customers would even sell their own cigars in the store.
I know its a bit harsh but it is Hawaii and the weather is almost always nice. We are going to put in some outdoor seating that will be free but we have to charge for the lounge. I mean if we don't charge then its not going to happen at all and people will have to find another place to enjoy their cigars.

Also, I would like to thank every one for responding to this thread. It means a lot to get you input and ideas!

Re: My store is opening a lounge but we need some help...
 

Ok, that doesn't sound like a problem with not charging for lounge usage. That sounds like a problem with the management/ownership not enforcing some simple rules.

A Customer selling cigars on your premises is a HUGE no-no.

It's your store. Your property. Your livelihood. If you have a customer selling his own cigars on store premises then he needs to be asked to stop. If he refuses, then he needs to be asked to leave. If he refuses, you call the police and have him removed... trust me the law is on your side there.

Secondly, if he is selling any sort of illegal material in your store, you've created a liability that could cost you your tobacco license or even more severe penalties.

Thirdly, it needs to be understood what a customer is. A customer or a patron is someone who contributes to the vitality and profitability of your business, if said person is not doing so (or even detracting from it) then they are not a customer and should be asked to either contribute, if they continuously choose not to, then they must be asked to leave.

Re: My store is opening a lounge but we need some help...
 

Buy a cigar, you get to use the lounge. Don't buy a cigar, you don't get to don't use the lounge.

It's really pretty simple.

Re: My store is opening a lounge but we need some help...
 

Sam..very interesting thread. This topic has been beaten to death here in Hawaii. :bdh Its a fine line between what most have said here about just supporting the store by buying products and making sure it at least breaks even. Note to everyone: the lounge being planned is a separate room connected to their shop with air filtration and not just some chairs in the middle of the store. As mentioned earlier, it is a mgmt decision to enforce the rule of supporting the store and not letting people bring in their own. Which I know in the minimum ToH will do. I dont see you or Justin or Chris having any problem telling people about no outside tobacco.

I dont know if our mainland friends realize how expensive real estate is in hawaii vs other parts of the country. The profit margin remains the same on the cigars here as on the mainland yet Hawaii businesses have WAY more overhead especially when it comes to rent. There is no other lounge in Hawaii to smoke in after south pacific pipes and cigars went out of business. In fact, Tobaccos of Hawaii is one of only 2 stand alone tobacco stores on the island. There are only 4 in the whole state that I know of with Tobaccos of Hawaii being the most successful. Most of the cigar business is from wine and liquor retailers using cigars as additional business. With our high cost of business here in Hawaii and a 50% cigar tax which leads to lots of lost cigar sales to the internet, its easy to understand why there are so few tobacconists left. 15 years ago, there were close to 10 just on Oahu. South Pacific Pipes and Cigars went out of business in part due to some people abusing their lounge and not supporting the business but it was mostly poor mgmt by the owner. That being said Tobaccos of Hawaii has much better business practices.

Another problem is that there is homeless population in the area and they come into their shop, drop a handful of coins on the counter and buy a cheap cigar. I remember one time Justin had to light a cedar spill to get rid of the smell after a homeless guy bought a cheap cigar!:pu I dont know if I would want them hanging out in the lounge.

I have talked to a lot of the regulars on the cigar scene here and they cant wait for the lounge to open. I have mentioned to them the possibility of a fee and they seem to be fine with it. I think they appreciate just having a place to hang out. I would say that the fee should be reasonable. Im sure there is a portion of guys who wouldnt mind paying a modest membership but might not be able to afford or justify to their wives a steeper price! :r The tough part is getting it right on the first try..I dont envy the decision you folks have to make.

There has been some good suggestions about other ways of making the space profitable like offering drinks for sale (which you already have). I think some other things for the lounge that would be nice to have free if there is indeed a membership fee are free coffee, wifi, movies, etc. Might be able to have events in the lounge like pay per view mma, etc.

Also remember having the lounge space will allow you to have events which you currently dont have. I tried to get events going with South Pacific Pipes and Cigars. We did a couple and they made a nice chunk of money in the few hours of their events. The profits from the event could help offset the rent on the lounge. In fact, if you set up a monthly event on the same day the guys could plan around it and you would get even better participation. Also a great way to introduce new lines or cigar releases.

Another thing that needs to be addressed are the tourists. We always have visitors to the islands and there will always be that portion who like to sit down and have a smoke. With your proximity to Waikiki you will see a lot of that.

ToH is good people and I look forward to the new lounge and the great camaraderie that Im sure will follow!:tu

Re: My store is opening a lounge but we need some help...
 

Sam, I have some ideas and things that would help Chris out with this. Too much to type. I shot him an email and will hopefully be able to help him out with this project.

Re: My store is opening a lounge but we need some help...
 

I agree Jon, Chris and Justin are both good people that know how to run a successful business. When I was out on Oahu last year visiting accounts, I hung out with both of them for almost the whole day. Chris had mentioned that he eventually wanted to do something like this, glad to see it's finally happening. They are big supporters of the Oliva/Cain/Nub brands and I really hope they get this lounge up and running. With there being so few places to smoke on the island due to the crazy smoking ban, this will be huge for both locals and tourists.

Re: My store is opening a lounge but we need some help...
 

I can't believe somebody would bring their own cigar to a cigar lounge. Do you bring your own eggs and bacon to Denny's?

Re: My store is opening a lounge but we need some help...
 

Okay wait i have done this.. But when i do i make sure to buy a cigar from the owner. So i don't see why it would be a problem.

Re: My store is opening a lounge but we need some help...
 

I would bring my own too but if I did I more than make it up with the stupidly expensive scotch.

Re: My store is opening a lounge but we need some help...
 

I as well have done this. I have a lot of cigars i love to smoke which my B&M doesn't carry or can't keep on the shelves. I ALWAYS make sure to buy as many cigars from them as i smoke while i'm there and make sure they are ones that i will smoke again and not some cheap-o's. I personally don't see a problem with it and neither does the owner since he lets me continue to do so.

That makes sense but not every one has sense. Some guys would go into the shop that closed down with their zip log bag from Holts or CI and sit down and start smoking. They would even read the catalogs, planning their next purchase to boot. Had another guy that came in every day showing off his Cubans and smoking them but never buy from the store. Along those same lines they allowed pipe smokers to fill a bowl from their bulk blends for free to sample the different blends. There were some that "sample" every time they came in and never buy any pipe tobacco. Near the end of the business their inventory was so bad you couldn't blame someone for bringing their own. There was nothing decent to buy. If that happened when I was in there, I would buy a magazine or something. That's a bi reason why I would never subscribe to cigar or pipe magazines just so I could buy something from them.
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Re: My store is opening a lounge but we need some help...
 

I'm going to Starbucks tomorrow to use their wi-fi, think they'll mind if I bring a cup of coffee and a bagel from home?

See how silly that sounds?

Re: My store is opening a lounge but we need some help...
 

Most people have no concept of what it takes to run a business. It sounds like on both ends of this scenario. The owner should never have let it get to this. The main fault is theirs. Maybe they were at their wits end and felt like this is better than an empty place. Sounds like it is and was not easy place to run a biz of this sort in that location.
You can't always rely on peoples good nature to have a business do well. It's true that most people will "do the right thing" but some won't and they can bring friends...

Re: My store is opening a lounge but we need some help...
 

Lighting fee. I use to be opposed to it as I remember just going to any bar and smoking a cigar, but in most states that is a bye gone era. The rare occasion I do smoke in public, if they need a lighting fee, then that is gladly paid.

Re: My store is opening a lounge but we need some help...
 

I guess I see that. It's kind of like a corkage fee at a restaurant.

Re: My store is opening a lounge but we need some help...
 

Agreed!!!

Re: My store is opening a lounge but we need some help...
 

Wow how did I miss this thread? ToH opening a lounge? Awesome, count me in, I don't think anyone would mind a modest entry fee seeing as it would be the only place like it on island.

Re: My store is opening a lounge but we need some help...
 

Hopefully in the next month or so. I was there a few days ago checking it out. They are even installing a heavy duty industrial grade air filter!

Re: My store is opening a lounge but we need some help...
 

Awesome, I love that place, every time the wife and I are downtown we stop in and the guy behind the counter gives my son a box to play with while I try to remember what cigars I've been meaning to try.