Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
75TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2009blendssizesandlineextensions.Smokerx19sHavennowhasabout20private-labelSKUs.Kersteinlistenstocustomersandadaptsblendstotheirtastesbuildingaloyalollowingorhisprivate-labelbrands.x1cWetrytostayaheadothecurvex14butnottooaraheadx14withregardtowhatcustomersarebuying.Tatwaywecanridethewaveowhatx19spopular.x1dTisapproachalsoallowsKersteintocustomizehisselectionorlocaltastes.TeGallowaystoreisabouttwomilesromtheamousSeaviewgolresortandheox2ersaprivatelabelthathecallsx1cTeWedgex1dacigardesignedorgolers.Itsuniquedesigndoesnx19tre-quireacutterorpunchthesmokercanpinchopentheendandthecigarhasamildx1avorthatoccasionalcigarsmokerspreer.Kersteinkeepstheproftmarginsonhisprivatelabelsaboutthesameasthoseorothercigarsinthestore.Forthequalitytheyareveryprice-competitivehesays.TemainvalueorSmokerx19sHavenisthatcustomerswillreturntohisstoresbecausethecigarscanx19tbeboughtanywhereelse.x1cIsupposeyoucouldjuicethemarginordis-countthemandgoorvolumebutwechosenottodothat.x1dTeprivate-labelcigarshavenx19tallbeensuccessulKersteinsayshex19sintroducedaewcigarsthatbombed.Forexamplewhilethex1cshortstoryx1dwasapopularcigarsizeaewyearsagohisprivate-labelversionoitdidnx19tsellwellalthoughtheblendheusedsoldwellinothersizes.x1cOurcustomersdidnx19tlikethatsmalloacigarx1dhesays.x1cItwasnx19tabigdealwejustdidnx19tordermoreinthatsize.x1dSmokerx19sHavenx19sprivate-labelprogramgoesbeyondthecigarshowever.x1cAnytimewecangetreeadvertisingweeellikewex19reaheadothegamex1dsaysKersteinwhosellsSmokerx19sHavendisposablelightersneartheregistersoallhisstoresor0.99.Teyarethelowest-costlight-ersinthestorehenotes.x1cTeycostmelessthanwhatIsellthemorsoIx19mmakingaproftx14andIx19mget-tingatonoreeadvertising.x1dKersteinollowsthesameap-proachwithcigarcuttersstickmatchesandcigarbags.x1cWhygiveoutaplainbagwhenorjustaewcentsmoreyoucangetonewithyournameandnumberonitx1dHeholdsupaboxomatcheswiththestorelogoontherontandalistoSmok-erx19sHavenstorelocationsandphonenumbersontheback.x1cTisisthetypeothingIx19mtalkingaboutx14andyoudonx19thavetoorderaninordinateamount.x1dHisstoresevenox2ertheirowncustomizedSmokerx19sHavenZip-powhicheaturesthestorelogo.ForpipesmokersKersteingivesawaypipecleanerholdersprintedwiththestorex19scontactinorma-tionwithallnewpipepurchases.Healsohasaqualityentry-levelpipewiththeSmokerx19sHavenbranding.ThePrice-PoinTx1cruleofThreex1dKersteinx19sbigonprivatelabelingbuthealsohasanotherim-portanttiporoutletownersWhenmerchandisingaccessoriesitiscrucialtorememberthex1cruleothreex1dx14retailersneedtohavethreepricepointsoreachtypeoitemtogivethemx1exibilitywhenselling.Kersteinsaysasurprisingnumberohispeersarenx19tawareothiscrucialmarketingtactic.x1cItx19ssomethingIlearnedthevalueoalongtimeago.x1dAsanexampleForcustomerslookingoragitcigarcutterhisstoressellaqualitynon-brandedcut-terinaboxor15aColibricutteror29.95andaZinocutteror45.Otenaemalecustomerwhocomesinlookingoragitknowsonlythattheintendedrecipientenjoyscigars.x1cItheyarelookingataccessoriesandyouhavethreedix2erentpricepointsyouwillgetasalenineouto10timesx1dhesays.x1cIyouhaveonlyonepricepointyougivethemanop-portunitytohedge.Teymaysayx18Ihadnx19texpectedtospendthatmuchx19orx18Ihadplannedtospendmore.x19x1cWhenIhaveacustomeraskingoracigarcutteroraChristmasgitthefrstthingthatIaskorisapricerangeowhattheywanttospend.Itheydonx19tknowIx19llstartwiththemid-pricedoneletx19ssayaColibriat29.TenIx19llsuggestthatithecustomerislookingoralittlemorequalityIx19llshowthemsomethinghigher.Tatwayitheystarttobalkyoucanmovedowntothelowest-pricedproduct.x1dHetakesthesameapproachwithotherproductsincludingpipespipetobaccopouchesandcigaretteinjec-tors.Withpipesheox2ersabasket-