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TOBACCO BUSINESS
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A SERVICE SOLUTION
In addition to expert advice on the ins and outs of roll-
ing your own cigarettes, Tobacco Road prides itself
on top-notch customer service. Employees greet regu-
lars by name and take the time to help new customers
learn how to operate a cigarette machine or find the
right cigar. “Customer service is a No. 1 priority for
us,” says Harkraeer. “We are fortunate that we don’t
have a big rollover rate with employees, and we have
managed to attract people who want to learn more
[about the category] themselves and who are open to
educating other people.”
Since most customers are motivated primarily by
price, Tobacco Road has found tailoring its assortment
to its client base is a sensible approach. “We used to have
a larger selection, but the longer product sits around the
more it dries out,” explains Harkraeer. “So now we lis-
ten to the feedback our customers offer us about brands
and adjust accordingly. If someone tells us about a brand
they like, we’ll bring it in, or if they complain about a
brand we’ve carried, we may stop selling it. It’s all about
having what your customers want and answering the
questions they have.”
Tobacco Road carries between 75 and 100 cigars
ranging from $2 to $15 per stick, with a wider assortment
during the busier summer months when cigar smoking
ramps up due to better weather. Its cigar clientele ranges
from regular cigar smokers to those who visit only on
special occasions or in search of a gift. “When you have
that kind of range, your employees need to know the
basics about cigars,” relays Harkraeer, who says that the
company does well with the Ashton, Cohibas and Acid
brands. “We are not experts, but we’ve learned a lot from
our sales reps and our customers.”
The store also attracts cigar smokers with regular
specials, including discounts on purchases of 20 or
more cigars and promotions. “Our customers are very
price-motivated; they will shop around and look for the
best price,” notes Harkraeer, who says that the shop
broadcasts price promotions on all product categories in
a monthly email it distributes to more than 3,000 sub-
scribers who have signed up at any of the owner’s four
retail establishments. “The emails tell customers about
what’s going on in all [of] the stores—wine tastings at
the liquor store, events at the bar, and promotions at the
tobacco shop.”
In addition to RYO and cigars, Tobacco Road does
well with pipe tobacco and also sells other tobacco-re-
lated products, including six brands of e-liquid juice,
e-cigarettes, mods and glass pipes. “We try to stay on
top of what our customers want and need, and stay edu-
cated about new products and trends,” says Harkraeer.
“If someone wants to transition to vaping, we want
to be able to help them with that. If they want to quit
smoking, we’ll encourage them and help them with that
too, because even if they quit and stop coming back,
they’ll recommend us to other smokers.” Tobacco Road
also no longer sells product over the Internet, due to
tougher requirements about age verification imposed
by FDA regulation.
While regulations imposed by the FDA have impact-
ed the company’s business, Harkraeer is confident that
Tobacco Road will be able to adapt and thrive going
forward. “We will adjust, just as we have from the very
beginning,” she says. “For example, we stopped selling
product on the Internet because age verification when
you’re shipping products got too complicated. Things
happen and we switch it up, see what’s needed, and get
through. You have to be open to change. That’s what
tobacco retail is all about.”
TB
We are fortunate
that we don’t
have a big roll-
over rate with
employees, and
we have man-
aged to attract
people who
want to learn
more [about
the category]
themselves and
who are open to
educating other
people.
Tobacco Road's Arlene Harkraeer