Expert: M J Robbins - 1/23/2010

Question
QUESTION: Hello Mr. Robbins,
I started smoking cigars about a year ago.  I am not well versed in what is good & what is bad.  I would like to open a cigar shop with a walk in humidor.  I have read up on humidors, but how do I decide what to stock it with?  The other paraphernalia should not be too difficult.  Should I contact a wholesaler & get his/her advice?

Thanks,

Thom

ANSWER: Start with the humidor,
To keep the cigars fresh they must be kept cool ideally at 65 degrees 73% RH
OK this is hard and expensive so you can go with the average which is 70 - 70
but this is not going to keep cigars perfectly so you must expect bugs and mold to develop and you have to watch for it - like most shops. Spanish cedar must be used in the interior at least for shelving although my whole humidor is Spanish Cedar but that would cost $10,000 today just for the wood and perhaps another $5,000 for carpentry.
The cigars are regional some are more popular in some states than others.
The more money you put into the store the better cigars you will be offered by the best manufacturers, just like the wine industry.
I sell on a good weekend 100 lighters so a good inventory of accessories is necessary. We have 1,000 lighters on display up to $100. This is just a for instance. Cutters lighters ash trays
and the latest thing Hookahs.
Humidors are dead it seems so you need them but not too many.
Tobacco pipes - you need some of those too. It took me 1 year and 50,000 pipes to get the hang of picking good pipes. Pipe tobacco is not in that much demand so keep the selection basic.

Finally there are few shops that survive and this should not be a primary income.
I am the foremost authority on pipes lighters cigars and tobaccos. I am the West Coast Zippo distributor and imported pipes in the 1980s I have been in business for 30 years and still struggle to make the kind of money I would like. This last year was a disaster and we needed to use a lot of money we saved.

Well I could go on for a book but this is a start to fathom
You want more?
If you have a lot of money to invest and you are well off but want to own a nice smoke shop to enjoy I could lay out a whole inventory plan for you depending on your region and location.
I could also lay out the design of the store for best traffic flow and use some of my new ideas for refrigerated humidors but it will not be a walk in. People are hot and they warm the humidor - then you have to use more refrigeration- then you have to spray more water- and this is the circle of disaster for cigars that you see in most stores.

I have to know where how much and more.
I would charge for complete hands on plan.

Mike

---------- FOLLOW-UP ----------

QUESTION: What is a ballpark figure for a 'Hands on Plan'?

Are there any professional organizations in north San Diego County that are cigar based?

Answer
Sorry I needed time to put this together and tonight I have time.

How big a store?
Do you want a club with a liquor license? Full liquor $35,000?
Are you in it for fun or for the long haul?
Can you buy the store or are you renting? Buying a small retail center is an investment that insures a success even if the cigar store fails.
How old are you?
Depending on the cost and availability of Spanish Cedar -
100% Spanish cedar humidor 20x20 with refrigeration $25,000
250 lockers for club members $20,000? Although some really fine lockers cost $10,000 for 16.
Beer and wine license and bar $10,000.
Leather chairs $10,000 maybe less.
Counters 50 feet 10 - 5 foot counters $500 $5,000 used ones could work but that is not the best.
$35,000 for 10,000 cigars
250 Zippo lighters $3,000
200 pipes $6,000
Ash trays cutters humidors lighters $10,000 for a complete selection.
Nice lighters for an upscale area Dupont 20 for $10,000 and they need a special alarmed case.
Alarms and cameras $1,000
Computers 2- $3,000
Walls and carpeting $5,000?
Printer and fax $300 back up fax $59 (I always have one)
Hookahs - 50 - $25ea $1250 Tobacco 100 flavors 3 different kinds $2,000
Pipe tobacco 10 kinds 10 lb bags $100ea $1,000
Walking sticks 100 $5 $500


Do you want to be considered for a Cuban franchise in the future perhaps 10 years?
To get a Casa Del Habano license if the Cuban market opens the store has to be 100% gold plated and have a lot of money behind it. That could be the play to riches.

In San Diego there are only some retail, roll on location stores, that are mildly successful. Lousy cigars though...
When you ask for professionals in California there is only one in my opinion. Many stores in my area have stayed in business by doing what I do, selling what I sell, in the cigars, lighters or pipes, for the last 30 years. They come and shop me every now and then for the latest ideas. The ones that don't are not in business long. When I set the standard for temperature and humidity a few tried to follow suit but it was expensive as they learned.

Paradisecigars@aol.com if you wanna talk...
Mike Robbins