Tobacco Business

[ 80 ] TOBACCO BUSINESS [ JULY / AUGUST | 21 ] I It’s a question retailers are constantly grappling with: How do I go about making more money? While new products are often the perceived answer to that question, moving the product that’s currently on the shelves or in a humidor is a bigger problem tobacconists must address. That’s where upselling comes into play. Upselling is a sales technique in which a seller convinces a customer to purchase additional or more profitable items. This sales technique seems far easier than it really is. First, retailers must offer their customers more of what they already want—convincing the customer that he or she wants more of any given product is the real challenge. “By upselling, you provide the customer with more value and pleasure from the products they purchase from you,” explains Jorge Armenteros, founder of Tobacconist University. “If a customer seeks relaxation from a cigar, two cigars will provide them with twice as much! For a retail tobacconist, upselling can be the difference between success and failure. Competing with the internet, mail order and discount warehouses is extremely difficult, but an additional $50 a day in upsells will yield an extra $18,000 a year—and this pays a lot of bills!” Tobacconist University, an education-driven certification program designed to bring professionalism to the tobacconist profession, teaches that upselling is defined by the customer’s needs and wants. Is the customer focused on quantity? Is he or she a big spender or more value driven? Do they prefer new releases, rare products, aged cigars or are they solely focused on price? Every customer’s preference is different, calling for a completely tailored sales approach. In order to upsell, you must first understand your customer. Tobacco Business : How can tobacconists formulate a sales strategy that fits their store and its customers? Jorge Armenteros: Every tobacconist is different and will have a different approach to selling. Some are more shy while others enjoy selling and driving up their average sales. A shy tobacconist should focus on educating their customer on new and other products by asking, “Do you need a cutter or humidification pouch with that?” A sales-driven tobacconist can pursue the “you have to try this” or “don’t miss out on this” or “you need this” approach. While the sales techniques and culture will vary with retail tobacconists, we all have a similar pool of resources to upsell, which includes lighters, cutters, humidification packs, additional cigars and other accessories. Retail tobacconist upselling can occur in the humidor as well as at the point of sale (POS). Upselling big items like lighters, cases, humidors and other cigars is great, but POS items can add up to big business over the course of the year. These items are our last opportunity to add value to the customer’s retail experience. Yes, that’s correct, upselling adds value! In a luxury business like ours, there is no post-purchase remorse for having purchased more luxury. Tobacconists are selling pleasure, relaxation and taste, and our customers always want more of those things. The Art of the Upsell You don’t necessarily need new products to make big profits. Learn how to convince your customers to buy more as well as how you can add an additional $18,000 to your bottom line each year.