LEVERAGING TECHNOLOGY
The use of technology–from social media to point-of-sales–retailers can gain an edge and not only promote their businesses in new ways but can also get organized, which will lead to profitable gains and insights.
“Some of the things we’ve done recently within the last 8 years is that we’ve really gotten involved in social media and social media has been really good for us because premium cigars are a lifestyle experience. I like to refer to Instagram as the show-off social media so the cigar lifestyle fits into that well,” said Borysiewicz. Gallagher, Silverman and Collett all stressed the importance of a good point-of-sales system and the value it can add to your business.
“Getting back to the point of sales system, I think that’s probably one of the best tools to manage your inventory,” Silverman said. “The loyalty programs and some of the things that are upcoming with the point-of-sales system that we use. We’re probably going to use more of those types of things to grow our business.”
Borysiewicz added that data garnered from point-of-sales can also be used to generate reports about top selling products, information your staff can then use to sell those products that are adding to the bottom line. Another piece of technology retailers need in their arsenal is age verification, especially if they’re selling online like Corona Cigar Co. does.
“With the FDA regulation that was a big issue for us – age verification. We don’t use Veratad [age verification service] because we want to but because we have to. That’s a big challenge when we sell online. If you sell any type of tobacco product online make sure you get some sort of age verification,” advised Borysiewicz.
Loyalty programs, direct mail and even print advertising in lifestyle magazines and classified sections were all ways these retailers grew their businesses over the years.
OPPORTUNITY IN TOBACCO
Despite the changing landscape of tobacco retail and increasing regulations, there’s still opportunity and ways for retailers to win in this product category. Successful retailers must view new challenges as opportunity, embrace new technology to grow and promote their businesses and best of all, winning starts in the mind of the retailer.
“There is opportunity for you to make money and become successful in this business–whether it’s premium cigars, vapor or cannabis–but you’ve got to stay focused, you’ve got to work like hell, and reinvest money into your company. And that’s the key to your business becoming successful,” said Borysiewciz.
For more on this year’s Tobacco Plus Expo (TPE), click here.
