Starting a brick and mortar

[Subvet642]

Risk is the moral justification for profit. If the rewards are worth the risk, then go for it. But, like everyone else has basically said: do your homework and study your demographic. Personally, I like your idea, I'd practically live there.

[CRIMPS]

Whoever makes a Mad Men reference first wins.

[Crusader]

I appoligize if I hurt some feelings, it was not the intentions. My reference is to understand our type of shop we are looking for. We live in a town of about 50k and the only place to buy "premiums" is at a Smoker Friendly that is in the seedy part of town.
Yes, I absolutely think there has been a de-emphasis of the gentleman in our American culture, especially in I'm ok you're ok groups. Hey, I wear T-shirts and cargos too, but, they should not be your first choice out to eat and especially to church.
Why would I want to do a business deal with someone who does not care about appearance in any way.
Anywho, the guys I know will not even go to the one place in town due to the clientele that hang out there and my buddy and I do go go there minimum once a week in the winter for a mini herf because they do have a decent lounge that no one really uses.
Our idea would be to reach the other half that are missing out. The sticks would be our enjoyment and the others stuff to suplement.

And on the rvs. Heartland rv is probably the most solid manufacturer with Open Range / Highland ridge being a close second. Otherwise they are mostly the same using the same parts. 95% of owning an rv is your dealer you buy it from and how well they stand behind the product they sell. As the Warranty Manager I can tell you those two company's I mentioned back their product and what they don't we do as long as it's not absurd neglect. I pay a lot of claims for people on things that are not covered and that's what keeps us in business. Hell, we even do a lot of other dealerships warranty because they suck and won't help out their own.

[ApexAZ]

Originally Posted by Crusader

I appoligize if I hurt some feelings, it was not the intentions. My reference is to understand our type of shop we are looking for. We live in a town of about 50k and the only place to buy "premiums" is at a Smoker Friendly that is in the seedy part of town.
Yes, I absolutely think there has been a de-emphasis of the gentleman in our American culture, especially in I'm ok you're ok groups. Hey, I wear T-shirts and cargos too, but, they should not be your first choice out to eat and especially to church.
Why would I want to do a business deal with someone who does not care about appearance in any way.
Anywho, the guys I know will not even go to the one place in town due to the clientele that hang out there and my buddy and I do go go there minimum once a week in the winter for a mini herf because they do have a decent lounge that no one really uses.
Our idea would be to reach the other half that are missing out. The sticks would be our enjoyment and the others stuff to suplement.

And on the rvs. Heartland rv is probably the most solid manufacturer with Open Range / Highland ridge being a close second. Otherwise they are mostly the same using the same parts. 95% of owning an rv is your dealer you buy it from and how well they stand behind the product they sell. As the Warranty Manager I can tell you those two company's I mentioned back their product and what they don't we do as long as it's not absurd neglect. I pay a lot of claims for people on things that are not covered and that's what keeps us in business. Hell, we even do a lot of other dealerships warranty because they suck and won't help out their own.

Thanks! I am actually looking very hard at Heartland Sundance and Elkridge models. The difficulty I'm having is trying to determine MSRP I suspect the dealers inflate the MSRP, but I have no way of knowing for sure. They have a few 32-35' with floorplans I like in the $40k range, but I'm really trying to be out the door for 35k or less.

As far as the cigar shop, a town of 50k isn't a lot of people. Can a town that size actually support more than one? Is the demographic you are seeking out actually large enough to support you? You said there is a nicer lounge that rarely gets used, why is that? Is it because the current clientele runs off the others, or is it because there simply aren't enough others? In such a small town I would be wary of opening something unless I was certain I could dominate. I'm from a town that size and unless yours is very different, the ratio of what you might call sophisticated affluent versus every day people is pretty small.

[Crusader]

Here is our website you could compare with. Again we go way beyond what most dealers do. Ask your dealer to show you the entire dealership and have them explain how they will take care of you after the sale. We automatically set up 60 day and ten month inspections to help hammer out problems while in warranty.
As the saying goes , "People forget a cheap price log before a cheap service"
http://richsonsrv.com/

[ApexAZ]

Originally Posted by Crusader

Here is our website you could compare with. Again we go way beyond what most dealers do. Ask your dealer to show you the entire dealership and have them explain how they will take care of you after the sale. We automatically set up 60 day and ten month inspections to help hammer out problems while in warranty.
As the saying goes , "People forget a cheap price log before a cheap service"
http://richsonsrv.com/

Since this is beginning to stray off the topic of cigars, would it be okay if I PM you?

[Crusader]

Originally Posted by ApexAZ

Since this is beginning to stray off the topic of cigars, would it be okay if I PM you?

Sure

[Chimneyfish]

location location location!
developers, developers, developers!

Subways, Subways, Subways!!

[kydsid]

My opinion after visiting stores from one end of the country top to bottom left to right. Customer service first, lounge quality second, retail selection third. I will revisit a great lounge with good amenities and little to no cigars before a place with every cigar made and a folding chair in front of a b&w TV.

Next I don't think a town, any town, of 50k people can support cigar b&m.

[Crusader]

Originally Posted by ApexAZ

Since this is beginning to stray off the topic of cigars, would it be okay if I PM you?

Originally Posted by kydsid

My opinion after visiting stores from one end of the country top to bottom left to right. Customer service first, lounge quality second, retail selection third. I will revisit a great lounge with good amenities and little to no cigars before a place with every cigar made and a folding chair in front of a b&w TV.

Next I don't think a town, any town, of 50k people can support cigar b&m.

Maybe, we are more of a tri cities area with a town of 20k 15 mi away and a college town of 40k about 35 mi. That's why would be more of what I call an executive type of business specializing in finer but affordable things for men

[mosesbotbol]

A barbershop with cigars would be a nice combo. Good way to kill time while in queue.

[Crusader]

Originally Posted by mosesbotbol

A barbershop with cigars would be a nice combo. Good way to kill time while in queue.

I'm on board. Cigars, lounge, suites, straight razors and a barber. BOOM

[RandJCigars]

I just opened my second cigar lounge / b&m and I would echo what these guys have said; if you live in a good state where taxes aren't ridiculous and bans aren't prevalent, than go for it. I am in Texas, specifically south of Houston. Houston has a smoking ban but an amendment to the ordinance allows smoking indoors as long as your sales are 90% or more tobacco.

More specifically, my new lounge is in Friendswood....where there are NO smoking bans. Where the city council voted to allow business owners to make their own decisions on whether or not to allow smoking. (I love Friendswood...I live there). Furthermore, Friendswood has no ordinance or law against smoking AND drinking...in other words...I could hypothetically sell alcohol eventually if I wanted to.

Things to think about going into it:
1. How much square feet are you wanting vs needing. My original store in Pearland is a whopping 895 square feet...tiny. However, because of my setup, I still have 350 facings. My friendswood store is 1450 square feet. I have 500 facings there, a large lounge, an office, and a good sized warehouse in the back for my wholesale business. Moral is...what do you actually need vs what do you want? Do you need an office? Do you need a storage room? Are you wanting a walk-in or a cabinet system (I am a huge proponent of a cabinet system). What capacity are you aiming for for your smoking area/lounge?

2. Do you have a GOOD contractor ready to dedicate up to 3 months for a commercial build out? It would help to find a contractor that can sub out a guy who is familiar with really good HVAC systems/ERV systems/ Ventilation methods. Make sure if you do go forward with this...that ALL subs know the scope of the work. They need to know every detail so they don't unbid it...only to comeback and request a change order because the project needs this or that.

3. The location you want will determine where you get your cigars; direct from manufacturers or from wholesalers/distributors. It may not be the same where you live, but here in the Houston area....if a new lounge/b&m opens within 5 miles of another established cigar business...that lounge will not be open direct. In other words, the reps will not open direct accounts with you for the respective manufactures. I wholesale and distribute all brands...so believe me I know...I reek the benefits of guys that do that.

4. The Lease Language. This is important. Most leases have a section or paragraph that is titled "Use". This paragraph is, by default, "retail". However if you want to allow smoking...you must demand that the paragraph be changed and worded to suite your business. I do this with all my leases...it simply necessary to protect you and your business.

5. Cost. This is probably the biggest factor for anyone opening any type of business. Just to give you a rough estimate, my new lounge cost me right around $100,000 for buildout/construction + Furniture/Fixtures (which includes TV's, Display Cases, Cabinets/Millwork, etc). The Cigar Inventory alone was an additional $50,000. Accessory Orders totaled $5000 (humidors, briar pipes, lighters, cutters, butane, humidors, ashtrays, etc). This was for a 1450 square foot space that had never been built out so we had to do it all; Demising wall, all interior partition walls, plumbing, electrical, HVAC/ventilation, floors, paint, ceiling grid and tiles, etc. Plan well, establish a good relationship with your bank so you can get a good business loan. Also get a business credit card from Capitol One...they have one that gives 2% cash back and the points never expire. A card like that will pay you back so much...you won't believe it.

If you have any other questions, feel free to ask!
Good Luck!

Jimmy

[mosesbotbol]

Originally Posted by RandJCigars

I just opened my second cigar lounge / b&m and I would echo what these guys have said; if you live in a good state where taxes aren't ridiculous and bans aren't prevalent, than go for it.

How's business? Sounds like you have a lot invested. Between paying off your loans, along with salary, BAU operating costs, etc... Is there any left over? I don't mean for you to open your books, but to just illustrate that at the end of the day, the margins aren't that big and any missteps could wash away any profit.

Perhaps I am wrong and the cigar business is flush with cash?

[AdamJoshua]

Jimmy that was an excellent and very informative post, never wanted to open a B&M myself but I still found it interesting from a general business side (my father owned a few bars and even a donut shop). Thanks for taking the time!

[RandJCigars]

Originally Posted by AdamJoshua

Jimmy that was an excellent and very informative post, never wanted to open a B&M myself but I still found it interesting from a general business side (my father owned a few bars and even a donut shop). Thanks for taking the time!

It was my pleasure, I'm just glad to help. I was lucky to have my father help me open my first store, but most are not that lucky. My father has been in the Liquor and Tobacco businesses for 32 years now...so I had a great resource. I have personally been in the tobacco business since I was 18; I started with online Hookah sales. I used some of that money to start my wholesale cigar business believe it or not! I am now a full blown Cigar B & M / Lounge owner and I also wholesale and distribute all premium cigars to a handful of stores. On top of all that...I have my own brand of Cigar, named Inception, that is now in 92 stores across 24 states.

If you're going to get into something...you gotta go 100%, otherwise you're wasting your time. I am open to answer any questions for anyone else considering this business as a career path.

Thanks,

Jimmy

[mosesbotbol]

Originally Posted by RandJCigars

I have personally been in the tobacco business since I was 18; I started with online Hookah sales. I used some of that money to start my wholesale cigar business believe it or not! I am now a full blown Cigar B & M / Lounge owner and I also wholesale and distribute all premium cigars to a handful of stores. On top of all that...I have my own brand of Cigar, named Inception, that is now in 92 stores across 24 states.

If you're going to get into something...you gotta go 100%, otherwise you're wasting your time.

Wow, good for you! Love hearing that entrepreneurship is alive and well!

[stearns]

Excellent post Jimmy, thanks

[Crusader]

Yes, thank you. Your rough numbers are better than we thought. Hmmm, it's so crazy it just might work after all

[RandJCigars]

Originally Posted by Crusader

Yes, thank you. Your rough numbers are better than we thought. Hmmm, it's so crazy it just might work after all

Hope it helps! Let me know if you need any other questions answered. If you would be interested in ordering from us wholesale when you're all up and running, if and when, I'll be glad to discuss that as well.

Thanks,

Jimmy