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 listen 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 subscribers 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.”
While regulations imposed by the FDA have impacted 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.”
– Story by Jennifer Gelfand
This story first appeared in the May/June 2017 issue of Tobacco Business magazine. Members of the tobacco industry are eligible for a complimentary subscription to our magazine. Click here for details.
