Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/777147
3 Beverage Dynamics • Digital Edition Exclusive 2017 www.beveragedynamics.com "I also hope fundraisers in the form of cigar dinners are recog- nized as exempt from state bans of smoking indoors, provided all par- ticipants are volunteering of their own freewill," Jonas says. BOOSTING SALES While state and federal laws may complicate the retail of cigars, many retailers have found ways to boost sales. One strategy Cedar Mill's uses is to offer a multi-stick discount start- ing at only three sticks. They offer the following discounts: 3-5 sticks are 5% off, 6-11 sticks 10% off, 12+ sticks 15% off, with 20% off for a full-box purchase. "We also offer humidifi ed packs at the cash register for im- pulse purchases," Guerra says. "In addition, we make grab bags with a variety of brands at a discounted price, which allows people to try many styles of cigars and save a little money at the same time. Customers love them." Sherlock's has an old bourbon barrel in the humidor for mer- chandising, allowing them to pair a cigar with a few different spirit options. They also have POS material with certain brands that give a taste profi le for the customer's own pairing assistance. "We market our cigars through in-store signage, onsite promos, outside marquee advertising, plus our store blog and social media to draw people into our walk-in humidor," John- son says. The Fridge Liquor sends out monthly emails to their cus- tomers with a cigar of the month included. They also market the cigars via logos and signs on the outside of the building, and they utilize the postings on Twitter and other social media sites. "We also include a 'Cigar Glossary', defi ning a lot of the terms customers will need to know," Spreckels says. "This is in the humidor to help customers understand what they are buying." The Fridge Liquor's 10-percent military discount and 10-percent senior discount help increase cigar sales. "We are near a large military base and are one of the only places in town that offers this sort of dis- count of any kind," Spreckels says. "We also offer free matches to ev- eryone, as well as cutting cigars for people as well on the spot, if needed. We are in the process of working with some of our on-premise accounts as well, in- cluding golf courses, trying to fi gure out if getting our cigars at those places would be of benefi t to us both as well." OTHER CHALLENGES Some of the most challenging aspects about cigar retailing with the volume Cedar Mills does is that it can be a very labor intensive. Staying informed on all the latest releases, dealing with vendors, and fi elding customer questions can be time-consuming. The biggest challenge Sherlock's faces is inventory control. "This includes making sure that we have a suffi cient supply with- out overbuying," Johnson says. "When customers switch brands, you run the risk of being stuck with unnecessary inventory." "It's especially rewarding when people are new to cigars or perhaps looking for the perfect gift," Guerra says. "There can be quite a bit of education that goes along with a cigar purchase. Cutting, storing, lighting and even smoking a cigar are topics we are happy to discuss with our customers. I often recommend YouTube videos and other online resources to cus- tomers who are new to cigars. This presents an opportunity to increases sales for cigar accessories as well." " Cutting, storing, lighting and even smoking a cigar are topics we are happy to discuss with our customers "