Cigars behind the scens - Of cigar shops

That cigars are a work of art in themselves is something most people probably agree on, but running a cigar shop that makes it possible for you and me to buy them is another. I would say that running a cigar shop is one of the most difficult forms of business in today’s situation considering all the new regulations that come all the time and the opportunities for advertising is almost impossible in many parts of the world.

I have interviewed a few cigar shops and want to give you an insight into their pros and cons, challenges they face and things we don’t usually think about when we step through their doors.

I’ve long said that cigars are cheap considering how much work goes into making them. Now let’s go a step deeper and look at why cigars are cheap from a cigar shop’s perspective.

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Knowledge that never stops growing and a curiosity to explore more

Anyone can open a store, but making it work, profitable and building trust with your customers requires more. To succeed in the cigar industry requires more than interest, it requires a hunger to learn more and gain deep knowledge.

Knowing about, among other things, different flavor profiles from different Terroirs (countries and areas) is an integral part, how different fermentation processes have an impact on the flavors, body, flavor profiles, brands and to some extent knowledge of different pairings. Keeping track of new brands and blends, testing them to be able to give costumers the right advice. Finding the right type of cigar for the curious beginner and helping the experienced aficionado make the right choice for the moment.
This is knowledge that must constantly grow with them. A salesperson in a cigar shop is not like many other salespeople, they are a little more curious about new knowledge and know that they will never be fully educated.

Having a cigar shop requires more than capital and interest, it requires a passion and desire to give the right cigar to their customers so that they get the ultimate gourmet experience.

Investment

Starting a cigar shop is not something you do on a whim – it requires both long-term planning, great commitment and a lot of capital. Many people think that it is just a matter of buying some cigars and starting to sell, but the reality is much more complex.
First of all, capital is required. A cigar shop, whether physical or digital, must have a wide and attractive range. Customers want to be able to choose between different origins, vitolas and strengths. This means that you have to buy a fairly large inventory right from the start and that is money that is tied up immediately. It is not just about a few boxes here and there, but about building up a permanent inventory that can meet demand and at the same time withstand delivery delays or other unforeseen events. You must be prepared to set aside and stand by that capital even if sales take time to get going.

In parallel with this, you also have to build a platform, either a physical store, webshop, or grace and.
This means everything from choosing a location, interior design and humidor system which can keep up your quantity of cigars. To e-commerce solutions, logistics systems and customer support if it is digital. Having a platform also means that you need to create an identity, a brand, something that makes customers choose your store over others. In such a niche industry as this, credibility and personal tone play an incredibly big role.
In short: it doesn’t just take a love of cigars, it takes business acumen, networking, perseverance and a lot of money. But if you do it right, it can be something really nice, both for yourself and for the customers you build around your store.

The laws are becoming more and more numerous. An industry with challenges beyond the ordinary.

Laws are there to protect people from bad things. But in this case with cigars, I’m almost starting to think it’s madness and mockery of the industry and Aficionados. It’s gotten to the point where when I light a cigar, people look at me like I’m crazy while they walk past a person smoking weed and they almost see it as normal. What I feel is a big mockery is that it’s starting to get to the point where we’ll soon no longer be able to choose for ourselves how to live our lives. I understand the rules for substances that affect your mind and you become a danger to others, but have you ever heard of anyone getting drunk or having a different mind thanks to a cigar?

Running a store requires more than the classic knowledge of laws and rights. If you make a mistake here, it can cost you a lot, it can be a fine or even, in the worst case, closing the store. You have to be able to navigate traceability requirements, different types of labeling, customs procedures and various marketing rules. Many times, the regulations are also unclear. Many of these things also drive up the prices of cigars. With new rules, come new costs that mean that prices must be raised in order to even be able to have a cigar shop.

I was going to order some cigars from abroad and it was pretty clear to me that even the tax authorities and customs authorities don’t know 100% what applies. At the end of the day it was tax on tax on duty until I finally got a clear answer. It was actually only the tobacco tax I had to pay and duty. They are chasing an industry that doesn’t harm the public and setting rules that almost become a guessing games for the government employees and people who want to buy cigars from abroad.

Marketing

A big problem for the cigar industry in Europe is marketing. There is a saying, if you are not visible, you do not exist.

How do you get new customers or build stronger relationships if you’re not allowed to market yourself or have events?

Not being allowed to market your company is a bit absurd. The laws state quite clearly in many countries that you are not allowed to run campaigns or in any way show your range through marketing. I clearly understand that campaign prices are not allowed, cigars are still a craft that deserves its price. I clearly understand that it should not be attractive to minors, but I think not be able showing your range through marketing to a suitable target group is strange. A cigar is a gourmet experience and is priced higher than many other taste experiences. A cigar will not be low in price from the start, alochol and other products are far below in pricing then cigars. Not being allowed to market yourself completely means that prices have to go up, inventory stays on the shelf longer and the investments in the store take much longer to get back than in other industries. You have to rely on your knowledge of SEO and hope search engines find you.

Having an event to show off your cigars.

I can’t help it, but it bothers me a lot. Having events can be seen as a certain type of marketing. But what’s going on here? You meet potential customers, past customers, can verify their age, tell them about potential health risks if you want and go through the cigars in person. Even though you can verify age and tell them about potential health risks, you’re not allowed to have events to tell them about new cigars. Don’t you think that’s a little funny? Here we have another factor that causes prices to go up and being a dealer in the cigar industry can be incredibly tough.

Without being able to tell people about the new cigars, they will sit in the humidor longer, the money will be stagnant and customers will not have the opportunity to find out about them in the same way. The cigars will be stagnant and the price will unfortunately have to be increased. Something that affects both shops, producers and consumers.

Price war in an already vulnerable industry

As in many industries, there is also a price war to some extent. I am against the price war even though I like to bargain. The margins are quite low and having to compete on price instead of service means that the supply will ultimately be lower. The smaller margin, profitability reduces the opportunities to bring in new brands and expand the supply. This alone makes it more difficult to succeed in the industry.

Why do I usually buy from stores with a slightly higher price?

What I have noticed is that stores with a slightly higher price are more keen to maintain the service and quality of their cigars. When I have shopped at stores that are a little too cheap, I have noticed that the cigars are often not in the right condition and it is quite logical when you think about it. Having a larger humidor with the right climate requires a larger investment. The prices are usually not that much different that it is worth choosing the cheaper option. If I have already decided to invest in cigars, then I want them to maintain quality. The money and time I invest should be worth it.

Ask yourself, is it worth spending 10 dollars on a cigar that will give you frustration or 12 on the exact same one that will give you pleasure? Although the price is not a guarantee of quality from the store, it works a bit as an indication factor. You have to test and see.

What drives most of them is the craftsmanship behind each cigar and the culture. To work with your life’s passion and be your own boss is one of the best things you could wish for. Succeeding in a difficult industry is very rewarding, because it brings challenges to be solved and with each challenge you grow as a person.
There are old traditions behind the craftsmanship and the work behind it that are worth celebrating. Every cigar has something to tell with its flavors and it is something you want to share with others. You never become a complete scholar and there is always new knowledge to learn. You meet new people every day and it is not uncommon to hear their stories. The cigar community is a little different than many others, it is a little more open and you get to know people that you usually wouldn’t have otherwise.

A big Thank you to all shops out there.

I would like to take this opportunity to thank all of you out there who run a shop. Without your efforts, we would not have the same opportunities to enjoy cigars and the manufacturers would not have the same chances to show and sell their range and be able to make new blends. It is a circle and you are an important part of it.

A extra special thank you to swecigars, Cigarrspecialisten, Cigarrhyllan and Hemmys cigars

An extra big thank you to Daniel at Cigarrspecialisten, Andreas at Swecigars, Björn at Cigarr Hyllan and Hemmy at Hemmy Cigars. Your willingness to be interviewed for the article made the article possible. You are always so nice to talk to and have world-class service.