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46TOBACCOOUTLETBUSINESSMAYJUNE2009CautiousOx9timismTOpShonRossvicepresidentRoss-LabMarketingInc.Nothinx19ButtSmokesLubbockx19exasNo.38with14storesLifeafterSCHIPequalspriceconfusion.x1cItx19sbeenalittlecrazyromweektoweeknotknowingwhatthemanuacturersaregoingtodoasarastheirtimingtheamountsotheirincreasesromcigarettestocigarsx14itx19salldix4erent.Butourvolumeissomewhatuprightnowbecausetherex19ssuchconusioninthemarketplaceasaraswhatthex3nalpricingisgoingtobe.Peoplearearaidtositonthesidelinesandwaitknowingpricesarenx19tgoingtocomedown.Becauseothecustomersuspenseoutthereitx19sbeengoodorproductmovementandIassumetherewillbesomewhatoalullrightater.x1dItx19simportanttomakesuretokeepthecore.x1cCigarsareadix4erentbreedx14premiumcigarsarenx19tax4ectedthatmuchinthestateox1fexasbypriceincreasesx14andwex19reuprightnowinsales.Wex19vebeenlookingatexpandingoneoourlocationsromareach-inhumidortoawalk-inbutwex19relettingitallsettlex3rst.Wex19remakingsurewedonx19tgettoospreadouttoapointwecanx19tocusonourcore.Tecoreorusisbeingabletoprovideallthetobaccoproductstoallrangesoconsumers.TelastthingIwanttodoisgetsohigh-endweloseoutonsomeoourconsumerswhohelpedusbuildwhoweare.Ix19mtalkingaboutsomeotheourth-tierandRYOsmokersandconsumers.x1dPeoplearethepositiveforce.x1cItx19seasytohaveapositivespiritwhenyoux19resurroundedbygreatpeoplewhostayontopoyourbusiness.Youhavetobex1exiblebutatthesametimeyouhavetostaytruetowhatgotyoutothepointyoux19reatx14andeverybodyhastounderstandthat.Youhavetoocusonthecorebutbex1exibleenoughtomakeadjustments.Andbesureeveryonelovesyourorganizationromthecashiertotherepstotheofcestax4.Wex19reallinthistogether.Iyoukeepyourrela-tionshipsstrongyourbusinesswillstaystrong.Tatdoesnx19tmeanyoudonx19tgettoargueonceinawhilex14thatx19sjustpartobeinginbusiness.x1dGeorgeFrichterpresidentx19BMManagementPearlRiverLa.No.14with31storesx19obaccooutletsshouldhaveanadvantageoverc-storesandthegrocerychannel.x1cIx19mapprehensivebuthopeulrightnow.Ihavetoseetheullramix3cationowhattheederaltaxesbringplusitobaccoisgoingundertheFDAx14therearesomereallystringentpro-posalswithadvertising.ItreallydependsonhowartheFDAgoesbutitheycomeoutwithregulationwhichwouldallowonlyadult-onlystorestoselltobaccoitcouldex4ectivelytaketobaccooutoc-storesandgrocerystores.Ithathappenswewouldhaveacaptivemarket.Rightnowwex19reabletosellcigarettesandtobaccocheaperthanc-storesorgrocerystores.Hopeullywex19llbeabletoretainourmarketsharewiththeederaltaxincreases.Ourcustomersknewitwascomingbuttheyweresurprisedhowsoonmanuacturerstookthepriceincreases.x1dTisindustryisnostrangertoadversityx14andsurvival.x1cWex19vehadtoughtimesbeorethisisjustanotherbumpintheroad.Sureitsstickershockorsomepeoplewhentheyseethepriceoacartonocigarettesbuttypicallyevenitheysaytheyx19regoingtoquittheyeventuallyaccepttheprice.Ittakesawhileorthemtogetusedtotheshockx14usuallyamonthtotwomonths.MeanwhileIx19mlookingatmysalesrightnowandwatchingthemveryclosely.Wex19vediscusseditatlengthandthisisalmosta15to20percenttaxhike.Soisalesdonx19tgoup20percentthatmeanswex19resellingless.Wex19retryingtostayascompetitiveaspossible.Youdonx19thavetobethecheapestbutyouhavetobethenicest.IInoticeIhaveaclerkwhox19snotnicethenIgetridohimandgetonewhois.Youhavetoknowyourcustomersyouhavetotreatthemliketheyx19resomebodyspecialandtheyx19llcomeback.Wesitacrossromsomeservicestationsthatareessentiallygivingtobaccoawaybutourstoresstayinbusinessbecauseoourpeoplewhoknowtheircustomers.Wex19renotgoinganywhere.x1dGaryx19apleygeneralmanagerSmokeShopInc.DyerInd.No.13with35storesx19obaccotimeshavecertainlychanged.x1cWhenIstartedoutinthisbusinessacartonoMarlboroswas2.35.Nowthepricesaresocrazyitx19sgoingtobetoughertokeepourdoorsopen.Ithinkasanin-dustrywehavetokeeplookingordi-erentalternatives.BetweentheedsandPhilipMorrisitheycanpushthisFDAthingthroughthenitcangetrealtight.Manuacturersarebeatingeverybodyupincludingtheirownpeople.Ix19vealsoheardtheyx19retreatingwholesalersworsethanretailers.ButhowmuchmorecantheederalgovernmentandthestatesbeatthisindustryupTeyareallkillingtheirgoldengoose.Idonx19tseehowmuchmoretheycando.MybusinesshasbeenupthelastcoupleoweeksandIx19meelingsome-whatbetterbutIwonx19tknowuntilaboutourweeksaterApril1.Soartheindus-tryrightnowhasnx19tallenox4asdrasticallyasChickenLittlewasrunningdownthestreetsayingitwouldbutanothermonthorsowilltellusorsure.Teweatherisbreakingandbusinessalwaysgetsbetterwiththat.x1d