Tobacco Business

Technological Edge The Frakes family has faced many challenges on their road to entrepreneurship but none as challenging as the COVID-19 pandemic. In March 2020, they were told that their business would have to shut down due to the pandemic. Rather than shut it down completely, the Frakes came together and pivoted their entire business model, determined not to let anything threaten the lounge and the business they had started. First, they created samplers they called “CRS” (cigars ready to smoke) for their customers to purchase that would help get them through the quarantine. There were both three-day and five-day packs as well as a larger two-week assortment. These quarantine sampler packs became a popular offering during the months of the pandemic. Another innovation that came out during the pandemic was the launch of an e-commerce store. In the span of just 72 hours, Industrial Cigar Co. went from having no online store to having a complete e-commerce website that featured the store’s top 150 SKUs. Brandon enlisted the help of his other business, Go Local Group, which provides businesses withmarketing and branding services, to help build Industrial Cigar Co.’s e-commerce website in breakneck time. Now, that website is a staple of Industrial’s business as well as some of the other services Industrial Cigar Co. developed and rolled out during the pandemic that continue to be utilized today. It also taught Brandon and his family the importance of being agile and pivoting when necessary to keep the business from suffering. “There was this buzz of things happening, and just this overall pivot that was so cool,” says Brandon. “Once you started seeing these businesses falling off, you just realized they weren’t creative enough. They didn’t have the drive. They couldn’t pivot. They weren’t agile. All you had to do was just be agile and be smart.” Technology plays a massive role in Industrial Cigar Co.’ and the Frakes family isn’t afraid to use it to improve the overall experience of their customers. “Your level of technology is going to determine the level of your customer base,” Brandon says. “If your lounge is going to be a place that rings up sales on a calculator, then that’s the type of customer that you’re going to have—not saying that it’s better or worse. We live in a world that’s interconnected and technologically driven. That doesn’t mean you need to develop an app for your users, but that if you let it, technology can work for you, and it’s going to pay off for you.” If used correctly by retailers, technology can and should create a connection between the store and its customers. By using the latest air purification, humidification and point-of-sale systems, customers will continually know that they are getting the best in terms of customer service and product quality from a retailer. Social media is another digital tool retailers can use to connect with their customers regularly and also to distinguish themselves from competing businesses. Industrial Cigar Co. is active on Instagram, a platform that allows the Frakes family to provide an accurate and personalized snapshot of their business and its values. It also allows the store’s staff to go outside of the store’s physical walls and to develop deep and meaningful relationships with customers near and far. When Patience Pays Off There’s a final lesson other tobacconists can learn from the Frakes family: Patience pays off. It took six years to build the first Industrial Cigar Co. because they realized early on that there was no value or advantage in rushing the process. The Frakes family chose to take their time in developing their business, and instead of jumping in, they traveled to cigar-producing countries and visited tobacco fields and cigar factories instead. “Our family does not have a history of being super patient,” says Brandon. “We wanted to learn it before we got into it. This helped us be disciplined and understand the industry. It was absolutely 110 percent the way to go.” The Frakes have learned that in order to build a successful tobacco business, one must first build strong connections within their business—with their customers, with manufacturing partners, and with the culture and lifestyle as well. Strong connections will make people feel as if they are part of not only a store’s culture but also of a family, and that bond will help build an environment that’s welcoming and accepting of all. TB Are you thinking about opening your own cigar store? Industrial Cigar Co. co-founder Brandon Frakes offers up the following tips on how to get started and prepare yourself for long-term success. Start talking. Identify your five favorite lounges, and go talk to their owners. Ask them what they’ve learned. That’s going to tell you if the hurdles that they’ve jumped through are going to be ones you’re willing to jump through as well. Define the experience. Identify the experience you want your customers and members to have in your store or lounge. Figure out what will make your establishment different from others like it and what unique experience you will provide your customers. Hit the road. If you have not experienced the cigar culture and manufacturers in places like Nicaragua, the Dominican Republic, Honduras, Mexico and other countries, book a flight and do so now. You need to see and experience the worldly side of the cigar business before opening a lounge of your own. Understanding how tobacco is grown and where cigars are made will give you the respect, understanding and perspective necessary to create a store and lounge experience with a lasting impact. A 3-STEP OPENING PLAN 1. 2. 3. [ 90 ] TOBACCO BUSINESS [ MAY / JUNE | 21 ]