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Old 09-16-2014, 03:05 PM   #1
CigarNut
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Default Re: Wife asks, 'Why don't you open a cigar shop?'

All of this depends upon the local and state laws in your area. For example, in Oregon it would be difficult to open a new Cigar Store and near impossible to open a new Cigar Lounge.

Having said that, I think the following would be good:

- A good web presence -- you will probably not be able to compete against CI, Famous, etc., but it will give you additional business and lack of a web presence is aways a big negative
- A good lounge, with as much of a bar as you can have along with some TVs, and as Neil said, a Barista would be good too.
- Knowledgeable staff
- Decent selection of cigars (you don't have to carry everything, just a good variety)
- Once you get established, host some events -- leverage the manufacturers and distributors to help you
- Marketing. We have a local lounge that does OK, but they could do better if they advertised even a teeny bit. Not talking about color glossy ads, but a little something in the local paper.

Be prepared to work hard (long hours) for awhile.
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Old 09-18-2014, 12:07 PM   #2
ColdCuts
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Default Re: Wife asks, 'Why don't you open a cigar shop?'

Quote:
Originally Posted by CigarNut View Post
All of this depends upon the local and state laws in your area. For example, in Oregon it would be difficult to open a new Cigar Store and near impossible to open a new Cigar Lounge.
Quote:
Originally Posted by Robulous78 View Post
As others have stated, It really all comes down to what your local gov will allow, once you know that it is really all about knowing your clientele and and targeting your business toward them.
Quote:
Originally Posted by 357 View Post
I'm sure you'll do well, just do your homework on the current and pending legislation in your state/locality.

Right now, I'm trying to figure out exactly what the current laws in NYC are. I've found this:

Clean Indoor Air Act (CIAA)
Enacted in 1989 and last amended in 2013, the Clean Indoor Air Act (CIAA) prohibits smoking of tobacco (herbal cigarettes are exempted) in nearly all public and work places. Exemptions are allowed for cigar bars in existence prior to December 31, 2002 and for organizations that do not have employees.

I haven't yet found any info covering cigar shops which are not bars, but early indicators point to no smoking in new cigar shops. If that's true, my little project is probably dead in the water. I mean, I guess some folks manage to run shops in which smoking is prohibited, but I just don't see how I could compete with the heavy hitters online if I couldn't offer a comfortable smoking lounge. Unless, I was mainly a newsstand or something else. A lot of newsstands around here sell a few cigars. But, thing is, I don't want to run a newsstand.

I surely wouldn't be able to offer competitive pricing. In the state of New York, tax on cigars is 75% of wholesale value. I don't know wholesale cigar prices, and I'm a bartender not a mathematician, but I've heard it said this means a $20.00 cigar in NY retails for $27.50. If I expect a guy to pay my prices rather than shop online, I'd better be able to offer him something he can't get from the big-box stores. And if he can't smoke in my shop, well...

I will of course report back here if I discover that I'm wrong about new shops being unable to permit smoking.

Quote:
Originally Posted by jhedrick83 View Post
Being a small business owner, my suggestion is to try and get a job in a B&M for a while (if you have the time). It helps you get an idea of what it is actually like. What might be problems, what are realistic expectations, what aren't, etc.
You know, should I decide to pursue this thing much further, this is a great idea. Hell, if I don't pursue this thing much further this is a great idea.

Thank you, everyone, for all your thoughtful responses.
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