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Deciding on which cigars are right for your humidor
and store can be a very complicated, time-consuming
process. Though it may seem like common sense, know-
ing what your customers are looking for is the best prac-
tice in choosing what to carry. You should only stock
popular sizes you know will sell well. Panelists agreed that
the best bet is to start out offering just one facing and let-
ting the selection grow naturally from there. There’s no
need to offer every facing available for a particular line.
“In a perfect world, retailers would want to have a lit-
tle bit of everything,” added Rick Charles, key accounts
sales manager at Phillips & King. “They all realize that
inventory control is an issue at the retail level. Keep it
simple. Have a bit of every size and price points. Be-
yond that, let your customers guide you. They will let
you know what they’re looking for.”
RINGING UP A RANGE
Knowing what your customers are looking for, as well
as what they’re willing to spend on a cigar, is key to de-
veloping a successful program. As a retailer, it’s perfectly
acceptable to ask a customer what their budget is. Keep
in mind that each customer will have a different defini-
tion of what’s inexpensive and what’s too costly. Making
assumptions about those definitions may actually cut po-
tential profits, which is why it’s important to stock your
humidor with a variety of cigars that are under $10,
mid-range, and high-end ultra-premium. Having a di-
verse collection of cigars at different price points and dif-
ferent flavor profiles and strengths will ensure you have
something for every potential cigar customer.
Also consider that different age groups will have dif-
ferent preferences. While your older clientele may be un-
willing to try new things, that is usually not the case with
millennials. “A lot of the younger millennials don’t have
brand loyalty,” Montolfo reported. “They like to try differ-
ent things, while the older smoker knows what they want.”
Douglas also noted that millennials are becoming a
more important client base that his store and others need
to start paying attention to. The key to any successful
business is building and maintaining a loyal customer
base, and the millennial crowd could bring in profits
for years to come. “Millennials want to try everything.
They’re not brand loyal,” said Douglas. “I think most
have been indoctrinated to believe cigarettes are the
worst thing in the world, but they don’t perceive cigars in
the same way. It doesn’t have the same stigma. Their fla-
vor pallet has really gotten a lot broader so they want to
find something else that tastes good, something else that
goes with this whole experience. Build that relationship.
Make everyone feel like they’re your best customer. Give
them that real experience.”
Part of that experience is making it easy for your cus-
tomers to discover cigars within your business. When
choosing the placement of a humidor within your retail
space, consider the store’s overall flow. You should guide
your customer through the store based on your most pop-
ular merchandise and place your humidor in a high-traffic
area next to products that you know are already popular.
“Traffic pattern is ultimately important,” explained
Bill Holliway, vice president of sales at Davidoff. “Un-
derstand what your customers are looking for. The closer
you can [place] your humidor to the register, the better.
Having products that are identifiable, well-lit and that
scream out is important—particularly if it’s something
brand new. Check out what the competition is doing.
You want to be one step ahead of them at all times if
you can afford it. If they only have wall units and you
start a walk-in humidor, you’re guaranteed to steal some
of those customers, just from a perception standpoint.”
PHOTO COURTESY OF PARTY SOURCE/BYRON PHOTOGRAPHY
I think most
have been
indoctrinated
to believe
cigarettes are
the worst thing
in the world,
but they don’t
perceive cigars
in the same
way. It doesn’t
have the same
stigma.
Party Source's humidor is prominently placed
at the front of the store.
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