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Anyone work at a B&M?

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2K views 14 replies 12 participants last post by  Matt1951 
#1 ·
I'm looking at an opportunity to run a cigar/beer store, but I've never been "in the biz". Can anyone give me the inside info? PM is ok if you don't want to make anything public.

Thanks for any help.


buk
 
#5 ·
I'm not a small business genius but it sounds like you need to hire a manager or rethink your strategy.
Abe is a genius. This industry, like a lot of ones, has plenty of opportunities to be taken advantage of quick. I'd go and work at a store for a year or so and get some grips on this industry.

Plenty have been in the same (or similar) position you have. They want to open up a store, start a brand, etc. Tons fail and the few that get lucky and survive, it takes them years and plenty of hardships before success.
 
#6 ·
If somebody came to me tomorrow and asked me to run a cigar shop I would do the following assuming the shop is already established as a business:

Call all vendors and ask them to come in for a conversation...inquire about events, volume discounts, turnaround times etc etc

Examine sales records and see what is moving and ensure it remains in stock

Analyze marketing budget to detail money available for increased advertising activities

Determine what community events may be attractive to attend

Actively seek out opportunities to supply liquor stores, clubs, etc

Identify staff that are worthy to keep, weed out the bad apples, and seek out better ones

Set sales goals, short and long term

Learn as much as you can about everything you have for sale in the shop

Set humidity levels in the walk in to 65 rh and 70 degrees

Discount slow moving product and make room for stuff that moves

Offer incentive programs to increase customer flow and repeat business

I am sure there are many other things I have not addressed but the above is where I would start.
 
#7 ·
FIRST

Location, location,location.
B&M's live on volume.
I too am looking into this
and have a couple "areas" in mind.
The market study and traffic studies will determine the
final spot.
If you have never worked in a B&M, hire someone who has.
I have found several manager level retired B&M workers, that would love a PT
job.
Be well capitalized
 
#8 ·
You need to attend the event, the IPCPR show, talk to the main vendors, set up accounts. You dont want to be purchasing through a distributor as you will have to mark up your cigars higher and might drive away some customers. But you HAVE to attend, not just for cigar business but every person who owns a business needs to attend those types of shows.

Good luck!
 
#9 ·
As you work through, feel free to pm me any specific questions. We have helped a couple shops open up and I love small business- so love watching places grow.

In a general sense, When we bought this store, my husband worked here for 4 years before we purchased it in order to learn the ins and outs, get to know the vendors etc. It made things much smoother. Even so, there were a number of unexpected expenses and information gaps as we actually started the day to day running of the place.

It sounds like you will be running an existing, not owning or starting fresh - is that correct? If so, I'd be happy to shoot you a pm with the specific questions you already have listed from that viewpoint
 
#10 ·
Thanks to everyone who responded (and sorry to those who got deleted for a misunderstanding).

I didn't make the situation clear enough. This is an existing cigar/beer store that has run for probably 15 years in the wealthiest county in Tennessee. It is connected to a liquor store, who I believe owns them. In Tennessee you can't legally sell alcohol with anything else, therefore there is one business with two entrances. I know, it makes no sense.

So a few years ago the liquor store expanded by taking about half the square footage of
the cigar shop. From that point to the present it seems like no one is running the place. The smoking lounge has been turned into an employee lounge. There is absolutely zero customer service. The humidor is about 10x16 and last Friday I counted 52 empty boxes, some of which had full boxes available, but no one was worried about it. Basically everyone is asleep at the wheel.

They are looking for someone to turn the place around, I just hope I can convince them that I'm the guy.

buk
 
#11 ·
I was at that cigar store last week im pretty sure. If its the one in franklin TN(smokes and brews) and they sold beer in that store.

Cant really help alot, but one thing i did notice in that store last was that they had several empty boxes with full on the above shelf. The employee was friendly when i came in and asked me if i needed help, i said no and looked around. After id looked around i asked him about some cigars and he told me what i needed to know and was very friendly.

I would say if i was close to a area with a BM i would like the following;
Good prices and lots of selections(not going to expect it to be like CI but fair prices)
Events and more events to get people in their.
Nice smoking lounge with WIFI and user friendly.

I know this isnt the exact questions you asked, but this is some of the things id like. If you get the place up and going let me know via PM and if im in the area ill swing by(im about a hour west of nashville)
 
#12 ·
Abe is a genius. This industry, like a lot of ones, has plenty of opportunities to be taken advantage of quick. I'd go and work at a store for a year or so and get some grips on this industry.

Plenty have been in the same (or similar) position you have. They want to open up a store, start a brand, etc. Tons fail and the few that get lucky and survive, it takes them years and plenty of hardships before success.
Charlie is right, I have worked in the industry as a Tobacconist for over 5 years. And it my passion. My advice is to get your foot in the door and work at a local shop to learn the industry.
 
#13 ·
If you have no experience in the industry, I would definitely get my foot in the door somewhere you could learn the ropes. This business is all about relationships and they are difficult to create without someone getting you in. Its a very tight knit industry and trust is everything
 
#15 ·
Retail with unrestricted competition is always going to be a tough dogfight. I agree with Bull, location location location. To make the business even more tricky, some cigar brands are on the way up, others are on the way down, nothing is static. The cigar stores I see doing the best also sell cigarettes, lottery tickets, pipe tobacco, pipes, and accessories. I have been told by people operating convenience stores/gas stations, that they lose money on gas sales, all their profit comes from their carwash. If you buy an existing business, you need to understand what is making money, what is losing money. If it is losing money overall, it is probably better to walk away. Find a better location and/or business model.
 
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