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January/February 2008 |
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When tobacco outlets look to cigar manufacturers as business partners, amazing category changes and profit can take shape. |
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Cigar havens are not run by retailers alone. Tobacco outlet owners who are serious about their cigar businesses are serious about their cigar manufacturer partnerships. They know that staying on top of cigar smokers’ wants and desires means keeping a finger on the pulse of the industry—so why not turn that into a handshake with the cigar manufacturers they do business with? Manufacturers are willing and able to share important product and display information. But more importantly, they are ready to team up with retailers who recognize the value in cigar events and cigar shopping enjoyment—on an ongoing basis. “Cigar customers are looking for a retail experience more than they are looking for a specific cigar,” asserts Aaron Guenther, director of marketing for Torano Cigars. “Smoking cigars is about a lifestyle—not an addiction,” adds John Curry, international sales manager for Puros Indios Cigars. And with increasing regulation, places to smoke a cigar in peace—beyond huddled in one’s own garage—are becoming rare. A majority of cigar smokers are notorious for wanting to puff in a comfortable place, surrounded by others just like themselves, and not home alone.
Even the primetime lawyer characters, played by William Shatner and James Spader on the hit show, “Boston Legal,” have made it clear that what they love about cigar smoking is the “bonding” it creates. The two end every episode with an after-office-hours ritual—out on the terrace of their high-rise office building—sitting in comfy lounge chairs, puffing on cigars, going over their legal cases, and ultimately, the meaning of their lives and sanctity of their friendship. In real life, smoking would probably be banned from the terrace of that building, and they’d have to seek out a favorite tobacco lounge—assuming there was one nearby. It’s the reality of slim-to-none places to smoke a cigar, as well as that fading image/desire for cigar bonding that presents the perfect opportunity for tobacco retailers: to create the best lounge area possible in their stores and accept the help of manufacturers and their events as a means of education and attraction. The goal is to grow the store into a destination for cigar customers, as well as local cigar smokers (who will become new customers) to smoke and unwind—and perhaps view the store owner and employees, partnered with various manufacturers, in a new light. “We combine management and staff training with a consumer event and teach our retailers how to plan and execute a successful and satisfying event,” says Mike Cusano, president of Cusano Cigars. “This is an opportunity for the retailer to get on the same side of the counter and show their customers ‘you are important to me, thank you for your business.’ It is the single-most rewarding thing a retailer can do for cigar customers.”
A Lounge StarJohn Lynch, store manager at Littleton, Colorado-based Smoker Friendly store-turned-cigar-“hangout,” couldn’t agree more. Last March, Lynch was instrumental in convincing the owners (of The Cigarette Store Corp., based in Boulder, Colorado) to turn the store’s back storage area, which Lynch said was “never used,” into a smoking lounge (complete with plasma-screen TV and satellite), where he now holds cigar events with manufacturers on a monthly basis. “Since we put in the lounge, we have easily doubled our sales in cigars,” Lynch reports. “It brings in more people; it builds crowds and curiosity. And we plan to continually improve upon it and our reputation in the category. It’s still growing—we’re watching it every month.” What’s more, even though the store is not one of the company’s high-volume stores (it averages about 70 customers a day versus 500 customers that the higher-traffic stores get), its cigar focus and lounge have put it high on the company sales map. “We’ve made the largest sales (such as a $2,600 cigar/humidor set) in the whole company’s history,” says Lynch. “And we’re consistently in the company’s top-40 stores in sales. Right now we’re at about No. 5, and we’ve hit No. 4 recently, too.” |
Gurkha and Torano are two cigar manufacturers that recently supported the suburban Colorado store with successful events and promotions, getting customers excited by sampling even limited-edition items (such as Black Dragons from Gurkha). “Thanks to the manufacturers, we’ve given away $30 cigars, even $150 ones,” reports Lynch. “That blows customers’ minds. They remember that stuff. No other tobacco store does that around here. It brings in five more customers each time. And I do it when they aren’t expecting it.” He says his rapport with manufacturers is such that “they know that if they give me something for free, it goes back to my customers. They take care of me because I’m taking care of my customers. I give away all kinds of stuff—humidors, lighters, the best cigars. I smoke, but my customers get it, they come first.” Lynch adds that his manufacturer reps “teach us the detail of their cigars,” but by coming to the events and sharing an evening with his customers, “they learn the groove of the area” and the nuances of his clientele “by sitting right with us.” To Lynch, this exchange is priceless. “We all get our knowledge through training, books, and DVDs, but no matter how much of that you get, until you step into a humidor with customers, until you sit with them and smoke a cigar, you’ll never really learn the vision of how to please them and grow your business,” he says. Lynch believes that all comes from retailers and manufacturers together engaging with customers—“you have to ‘feel’ what they’re buying and why,” he says. Another key to the partnership of manufacturers/ retailers pleasing customers is keeping it low- pressure, according to Lynch. “I have five or six customers that I call ‘high rollers’—money is no object to them, but as with any customer, I will not just take their money, I will only sell them something they really want,” he says. Lynch has trained not only his employees in this method, but his manufacturer reps, too, so that they are all in sync on how to cater to his customers. “I’ll try and pinpoint what they want, and if we don’t have it, I’ll order it. I do not try and push what we have out. That’s what we do so our customers don’t feel pressured to buy.” Lynch learned the hard way that when manufacturers aren’t part of a partnership, “they can make a judgment of your business. They profile you and compare you to everybody else, and then they try and dictate a lot of sales.” Instead, through his relaxed one-on-one interactions with customers and by creating better bonds with manufacturers, Lynch has found that his customers “spend money a lot more freely and openly because we don’t pressure them. We can all be ourselves. This is how this business should be.” • Lounging AroundCreating a destination lounge and incorporating manufacturer events could be the biggest thing a tobacco outlet can do for its cigar customers and ultimately, its cigar business. Here are some of the key ways that John Lynch, store manager at Smoker Friendly in Littleton, CO, keeps his lounge alive and thriving: • Size does matter—ample space was initially allotted for large crows; after that, updating and/or repairing and/or rearranging seating for maximum customer comfort • Technological improvements such as the recent addition of a plasma screen TV and satellite • Manufacturer events held at least monthly • Incorporating other group-gathering attractions such as music and free pizza • Introducing regular lounge-goers to new product at least weekly • But only selling items to a customer that he or she truly wants • Giving away the most outrageous cigar-related items in town—on an unexpected basis • Maintaining a “no pressure” sales attitude at all times • Letting customers interact with retailers and manufacturers on “their” side of the counter—as people who share a love of cigars • |
