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Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Saturday, June 6, 2026

The Most Important Number in Your Store


Over the span of three decades as a retail tobacconist, one of my strongest memories is standing in the humidor with a clipboard for hours counting cigars. It's certainly not one of my fondest memories, but it taught me one of the most important lessons in retail.

Row after row.

Shelf after shelf.

Box after box.

And just when you think you've found a rhythm, one manufacturer alone packs cigars in boxes of 20, 24, 25, and 26.

What the heck?

Then there's open-face stock.

Then there's sealed back stock.

Then there's back stock where somebody opened the box and never told anyone.

Was it Natural or Maduro?

Did somebody combine two boxes?

Did someone pull from back stock and forget to record it?

You can't assume. You can't estimate. You have to count.

By the time you're finished, your eyes are tired, your mind is numb, and all those little brown cigars begin to blur together. No matter how careful you are, you'll inevitably recount sections, question your numbers, and occasionally make mistakes. It's tedious work.

It's also one of the most important responsibilities of owning and operating a tobacco business.

Inventory counting is not glamorous. Customers never see it. Employees and managers rarely enjoy it. It doesn't create excitement, attract attention, or generate social media posts. Yet few activities are more important to the long-term health of a retail tobacco business.

Every cigar on your shelf represents money.

Not retail value.

Not projected value.

Real money that has already left your bank account and been invested into inventory.

If you don't know the wholesale value of your inventory, you don't truly know how your business is performing.

Sales reports tell part of the story.

Inventory tells the rest.

A disciplined inventory process doesn't need to be complicated.

We recommend:

• Monthly: Count all cigars. For most tobacconists, cigars represent the largest and most important inventory category.

• Monthly: Rotate spot checks through other departments such as lighters, cutters, humidors, pipes, pipe tobacco, and accessories.

• Quarterly: Complete a full-store inventory review to identify trends, discrepancies, and areas of concern.

• Annually: Perform a comprehensive fiscal year-end inventory. Your financial statements should reflect reality, not assumptions.

One of the lessons inventory teaches is that the number is rarely what you think it is.

The inventory value never increases on its own.

Theft happens.

Damage happens.

Sampling happens.

Breakage happens.

Receiving errors happen.

Miscounts happen.

Inventory is constantly being chipped away in small ways.

If the number ever goes up unexpectedly, it's usually because something was counted incorrectly the last time, not because cigars somehow multiplied overnight.

Inventory has a way of exposing reality.

That's exactly why it matters.

When a new inventory value is established, it should be entered into your accounting system. Whether you're using a spreadsheet, bookkeeping software, or a sophisticated POS system, inventory represents an asset on your balance sheet.

Every inventory count creates an opportunity to reconcile what you thought you had against what you actually have.

Those differences are called inventory adjustments.

Inventory adjustments affect your balance sheet, your profit and loss statement, and ultimately your profitability.

That's why inventory counting is not merely an operational exercise.

It's a financial one.

I can't tell you how many times I've heard a retailer talk about sales, profits, or growth, only to discover they haven't physically counted their inventory in months, or even years. They know what the computer says they should have. They don't know what they actually have.

Those are two very different numbers.

Inventory is one of the largest investments most tobacco retailers make. If you don't know its current wholesale value, you're operating with incomplete information. Every important decision you make, from purchasing and pricing to expansion and staffing, depends on knowing where you truly stand.

Before worrying about marketing campaigns, expansion plans, new product lines, or additional locations, make sure you know the wholesale value of the inventory already under your roof.

To be a retail tobacconist is to be a businessperson.

And businesspeople count.

They count because discipline creates awareness, awareness creates control, and control leads to better decisions.

You cannot manage what you do not measure.

And you cannot truly understand your business if you don't know the value of the inventory sitting on your shelves.

It's not glamorous.

It's not fun.

But it's essential.

Because inventory is more than the cigars we buy.

It's the responsibility to preserve them, protect them, account for them, and understand their value.

Your inventory value will tell you the truth, whether you want to hear it or not.

Saturday, August 2, 2008

New Customers: Car Dealers & Motorcyclists

   
Customers are defined by their Values.
Tobacconists are defined by the Value they Add!
   
Some of our best customers are car salesman and dealership owners. I can count hundreds of thousands of dollars in income from car salesmen and dealers since I have been a Tobacconist – their business has more than paid for every car I have owned over the years. These are truly special customers, for many reasons.
 
Firstly, dealership owners tend to be the embodiment of the products they sell. They are freedom loving, individualistic, and quintessentially American businessmen. This is also a pretty good description of the average cigar smoker too!

I have had several dealership owners who regularly purchased large quantities of cigars for themselves and their staffs.

Many owners and salesmen shop with us when they want to thank a [shared] customer who just purchased a car. – Maybe we should encourage our customers to tell their car salesmen that they love cigars from ‘put your store name here’.

Another benefit of the car salesman/dealer customer is the great deals. Both my customers and I have benefited greatly from these special customers – as always, cigar smokers share a special bond.

Perhaps the most interesting benefit of the car dealer customer is the event potential. I once had a formal cocktail party/cigar tasting event in the service garage of the Land Rover dealership. I must qualify that the garage was beautiful, spotless, and oddly elegant when filled with luxurious automobiles. In addition to this type of event, there are many other opportunities for marketing, promoting, and co-branding with car dealerships and clubs. Some ideas include:

  • share mailing lists
  • car club meetings at your shop
  • outdoor booth at dealer and club events
  • showcase luxury automobiles at your shop
  • offer gift certificates or coupons to a dealership’s customers
  • give a free cigar to new car buyers, like when a baby is born
  • negotiate special offers for your customers from a dealership
  • advertise in a dealership or car club brochure, internet site, or newsletter

So the lesson is…. get to know the car dealers and salesmen in your area. Find out if you can work together to better service your customers. And treat them well, as they will you.

Also, just substitute the word "CAR" with Motorcycle/Motorcyclist in this blog and you have another group to market to and with!