56
TOBACCO BUSINESS
JULY/AUGUST 2013
Bores—who tested it thoroughly before
deciding to move forward.
“I asked Paul to make a small run and
put together some floor displays, then
I got in my Cadillac and went around
to four high-volume cigarette stores to
see, as I like to say, if the dogs would eat
the dog food,” recounts Bores. “Lo and
behold, they did.”
Once the potential had been established,
Bores and Hoge joined forces with a third
cofounder, Paul Walsh, and got serious.The
duo created an ad to run in
TB
and set up
a telemarketing department, which started
cold calling stores and offering free samples.
“We would send a store a sample and then
follow up in a few weeks and try to make
that store a customer,” says Bores. “Soon,
we were converting those samples into
customers at a pretty high percentage.”
Quality andValue
While the magazine did bring the
product visibility, offering a quality product
at a reasonable price and having a philosophy
of continuous innovation has been the
cornerstone of Tobacco Outlet Products’
success. Early on, Walsh, Hoge and Bores
vowed to stick with cigarette stores and cigar
shops, steering clear of the big box retailers
like Walmart and K-mart. “We made the
Smoke Odor Exterminator Candle exclusive
to tobacco outlets,” he says. “We knew that if
we started selling to big chains they would cut
the price and outlets would no longer get the
kindofmarginswe’ve beenable todeliver—40
to 50 percent. We decided to stick with the
niche.”
The company has also held the line on price
increases—its products still sell for between
$7.99 and $10.95,the same prices they always
have, reports Hoge, who adds that retailers
can choose from any of five different display
programs.“The smallest is a countertopdisplay
at $100 and the largest is a floor display at
$900,” he reports, noting that retailers new
to the product tend to be surprised at how
quickly sales grow.“Most people start with the
small- or medium-sized display and trade up
as they grow the business.”
Over the years, Tobacco Outlet Products
has expanded from its original candle recipe
to offer a base of 12 to 15 different candle
fragrances, as well as limited edition and
seasonal fragrances. “Having fragrances come
and go over the year helps keep the product
moving,” says Hoge, who says that tastes vary
by customer so a wide and rotating variety
helps sales. “On an everyday basis, our vanilla
and clothesline fresh scents are popular, while
during the holiday season pumpkin spice does
“We knew that if we started selling
to big chains they would cut the price
and outlets would no longer get the
kind of margins we’ve been able to
deliver—40 to 50 percent.”
TOP’s Don Bores
