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THE PERFECT RETAILER, Part II |
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 More views from a Smoke-Filled Room
by Rich Perelman
Editor-in-Chief
Los Angeles, October 14 – Yesterday, we listed seven attributes we would look for in the “perfect” cigar retailer:
• Lots of cigar brands and sizes
• A one-page guide to what’s best (or new) in the humidor
• A calendar of cigars coming in
• An easy to use special-order or wait-list procedure
• A smoking area or lounge in the store or on the patio
• Once a month tastings or in-store promotions
• Special events programs (Super Bowl, etc.) at the store
Our last three:
• The “Cigar Club.” Many were started – and many were closed – during the Cigar Boom of the late 1990s. But some have survived and thrived, such as Club Macanudo in New York and the Grand Havana Rooms in Beverly Hills, New York and elsewhere.
Both of these combine fine dining with cigars, but have special accommodations for those wishing to obtain a higher level of service for their smoking needs. Of course, there is a fee involved.
At Club Macanudo, individual lockers – if available – are offered at $500 annually and at $700 annually for multi-user corporate lockers. At the Grand Havana Room in Beverly Hills, there’s a long waiting list and substantial initiation fee, plus a $200 per month charge, similar to the fee structure in most private clubs in the area.
What about in a cigar store? Whether modest or palatial, they need to offer:
> Reserved, humidified locker spaces with key or dial-lock access;
> First opportunity to buy at all sales events or special promotions on merchandise;
> First opportunity to buy hard-to-get cigars which come into the store;
> Charge accounts for purchases against a credit card on file;
> First opportunity to reserve places at all store samplings and events;
> Recognition – by name – in the store on a membership bulletin board.
There should be a fee for this and for many stores at which we have seen this program implemented, a typical monthly fee is in the $25-50 per month range, depending on location and amenities. The user will probably make this up just in free sampling cigars acquired during in-store events during the year.
• Availability of beverages in the lounge area, primarily coffee, water and soft drinks.
Some retailers hate this, noting that they are not a bar or restaurant. But there’s a reason bars serve salted snacks, to get their patrons to buy more drinks.
The same goes for cigar lounges, although drinks should be available to those who just want one and are not spending time in the lounge. Having coffee, water and soft drinks available – against a charge – gives people another reason to hang out, stay longer and buy more. And a reason to bring their friends.
One innovative store we saw in Los Angeles had the right idea, but no stomach for getting into the drinks business. The solution: vending machines! Provided by an outside company, the owner provided the service he wanted to his customers and got a piece of the action monthly without having to take any responsibility for stock or maintenance.
• Saved for last, a modest selection of accessories. This area can get crazy, but a top-flight store must carry at least some selection of:
> Ashtrays
> Cigar cases
> Cutters
> Humidors
> Lighters
and, of course, we suggest a modest book selection, including our Perelman’s Pocket Cyclopedia of Cigars and our Perelman’s Pocket Cyclopedia of Cigars. We would also suggest looking at Paul Garmirian’s excellent The Gourmet Guide to Cigars and Richard Hacker’s The Ultimate Cigar Book.
Many stores get carried away with accessories and stock too many and see an investment on the shelf or in the showcase which gathers dust instead of sales. Looking for a gauge on the popularity of accessories at various price points? Check the “Completed Items” section of any search on eBay and you can see which items sold for what price and how many bids they attracted.
That’s a lot of advice from someone who just shops in tobacco stores and doesn’t own one. Having been in retail myself, it’s an uphill battle to keep up with the rent, payroll, insurance, taxes on business and tobacco and so on. But the key is getting more customers and have them buy more cigars and accessories.
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