82 TOBACCO BUSINESS | MARCH / APRIL | 22 When speaking about SP1014, Patel is more concerned with what the product and SP1014 project stands for than he is with how much money he will make from it. “Can I make millions of cigars a year? Absolutely. Can I saturate the market with this? Absolutely. Do I want to? No, because that’s not what I’m about. I want to give you an $8 cigar in today’s market.” Just as he’s concerned with the quality of product he’s selling as a retailer, on the manufacturing side, Patel is just as obsessed with the finer details of his product because he wants anyone that buys SP1014 to have confidence that they are getting the premium cigar experience he’s promising them. Each cigar is individually weighed to ensure it has been properly filled, every cigar is draw tested, and Patel has spared no expense in securing what he feels is the best tobacco for this release. He also wanted to keep the cigar’s pricing from the early 1990s in order to make a point that some of what he’s seen in terms of pricing from manufacturers today is unwarranted. “This cigar is meant for people who enjoy smoking,” he says. “Again, this is not about money. I could make a nice box and put a price of $20 on it, but I’m not. I just can’t figure out why these manufacturers are charging what they’re charging.” Patel attributes part of the problem to how easy it is for someone to enter the cigar industry as a manufacturer and the willingness of some other manufacturers to make anyone a cigar without any sort of qualification. The recent rush of price increases hitting cigars served as a catalyst for Patel to bring SP1014 back to the market in 2022 with a focus on quality and consistency rather than on profit. Every box of SP1014 comes with a guarantee—something quite rare in the premium cigar category—that gives further assurance to retailers and consumers that if there’s any sort of problem with the cigar, such as an unexpected plug or other quality issue, the product can be returned to the point of purchase for a refund. Where many manufacturers focus on the blend and overall packaging, Patel instead focuses on the manufacturing process that makes SP1014 an exceptional product. By the time the consumer smokes the final product, their SP1014 cigar has been weighed six times to ensure every cigar that is shipped is the same and has been properly filled. The cigar is weighed at different points in the production process, from when it’s initially bunched down to when it’s placed in the aging room to when it’s ultimately packaged and shipped to retailers. Every cigar is also draw tested to ensure a consistent smoking experience that is the same for every consumer. As mentioned earlier, even though SP1014 is put through a meticulous and involved production process, Patel felt it was important to offer it at the same price it was when it was first introduced back in 1992—just $8. Much like his store is known for offering products at the MSRP, releasing a quality premium cigar product in 2022 at such an affordable price point was done intentionally to prove that pricing and quality are all controlled and in the hands of the manufacturers. So far, Patel is pleased with how SP1014 is performing. His plan is currently to only produce 250,000 of these cigars annually and to get the product into select retailers. Patel’s distribution plan is yet another aspect of his business that was inspired by a perceived “wrong” that is occurring within the industry—and it’s one that Patel hopes to take on with this new venture. He and his partners are searching for 30 to 35 retail partners to carry SP1014. This will allow Patel to maintain the proper production and quality of the product and keep his company from diluting the product or his overall business. SP1014 was brought back to make a statement, not to make a profit. Back to the ’90s After 30 years in tobacco retail, Patel says he doesn’t have much advice for his industry peers other than to do the right thing, even if it doesn’t make business sense. As a retailer and a manufacturer, consumers place their faith and trust in you, your business, your service and the products you sell them. Therefore, you must at all times, regardless of the cost, do what’s best for the consumers who are often vulnerable and in need of assistance from professionals who are driven by good morals and compelled by quality service. “Since the very beginning, my parents taught me to do business with ethics, morals and principles,” Patel says. “I have not changed because of greed of money or notoriety, and that’s something I’m very proud of.” Much like his SP1014, Patel hopes some other things from the 1990s will make a return: business ethics, manufacturers that work hard to earn the business of retailers, and quality premium tobacco products that bring both value and pleasure to consumers from all walks of life. While the pursuit of profits and notoriety run rampant in today’s business culture, Patel just has one simple piece of advice for those who are wondering how to achieve any sort of success in business today: When all else fails, do the right thing. TB Each SP1014 cigar is put through a rigorous production process that includes multiple draw tests and weighing to ensure each cigar is properly filled and consistently produced.
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