Thinking about starting a Distributor Company for Cigars in the next 6 months or so...anybody have any advice or tips that might make this process a littler smoother?
All comments are appreciated!
Enjoy your Smoke!
Mike
Printable View
Thinking about starting a Distributor Company for Cigars in the next 6 months or so...anybody have any advice or tips that might make this process a littler smoother?
All comments are appreciated!
Enjoy your Smoke!
Mike
Yep - don't ask that kind of question when you first sign up on a cigar board before people get to know you! :smiley2:Quote:
Originally Posted by wyattearp
I thought this was the Business Advice and Tips forum? I introduced myself to everyone already and am now just looking for some feedback from people who have done this or know someone who has. Thanks again for any information that might be helpful.
Enjoy your Smoke!
Mike
I know people who have set up a "Distributor Company for Cigars". Lots of hard work with little reward other than you get to travel quite a bit and smoke cigars.Quote:
Originally Posted by wyattearp
My advice - get your passport up to date, and smoke lots of cigars to get a sense of what it is you want to carry/offer and know why you want to carry/offer the cigars you're distributing.
Does that help?
Any information helps and I appreceiate the feedback. I was looking to obtain the Distributor License, Tobacco License, and Business License, start a website selling other Manufactures Cigars such as Drew Estate, etc...
I've contacted some Manufactures and have been told by them that they have a pricing guide for it's distributors so kind of moving in that direction...
Enjoy your Smoke!
Mike
That info varies from state to state, and locality to locality. You might find it very challenging in today's environment where many jurisdictions are going "smoke free" and taxation on tobacco products is at an all time high.Quote:
Originally Posted by wyattearp
Start out with creating a solid business plan - you'll need that to "sell" any perspective investors or banks willing to lend capital. It should also identify the risks you'll need to overcome to be successful.
Good luck!
Once again, good info! I think my biggest challenge will be the website and Search Engine Optimazation (SEO). The funding will be solely by me. Not really looking to target the commercial sells as of now but more residential Cigar smokers. Kind of like a Cigar.com, Thompson's set up.
I order from them frequently and started thinking of doing my own thing. It will be challenging, but what isn't now days....:smiley1:
Expanding on this idea, figure out what your strategy is early on, and who your primary target demographic is. Are you going to be pushing Swisher Sweets and Acids? Or Davidoffs and Tatuaje's? While there may be consumers in both categories simultaneously, I would imagine they would be in the minority.Quote:
Originally Posted by ggiese
Once that's established, everything else about your business should represent that mindset. From your website design, company name, who you advertise with, everything. Figure out what kind of distributor you want to be, and then pursue it!
Exactly the idea! I took down a list of Manufacturers of what I like so far. Don't really think I will be offering the Swishers or anything of that sort...more so targeting the premuims, the trend Cigars, sampler packs, boxes, accessories and so on...
Maybe in the future offering a Magazine to all members with some advertising opportunities to manufactures...
Thanks Again!
"Enjoy your Smoke"
For various reasons, I think this is a fairly difficult market to jump into. That being said, I would strongly caution you to pay attention to the legal issues -- set up an entity and shield your personal assets, figure out what licenses you need (and where) and pay your taxes. Under the auspices of consumer protection, I suspect a very large percentage of the states are going to attempt to regulate those who sell tobacco products. At a minimum, you'll need to look in what your state does to regulate tobacco distributors. Ignorance isn't bliss, and I know that in certain licensing contexts (automobile manufacturing and distribution) failure to obtain the required license and proceeding with a sale could be a misdemeanor and possibly a felony. It may be the case that states don't or can't regulate out-of-state distributors -- either way, you need to be certain of that.
Thanks for the information. I will be setting this up out of California and have looked up the necessary licenses in order to start up this type of business. I will look up regulations regarding selling to other states (i.e., Neveda might require me to meet their regulations in order for my company to sell tobacco to their residents via online).
Nice heads up and Thank you!
You should be wooing Davidoff and Fuente. They're both tough nuts to crack and will be two of the most important manufacturer's you would want to represent,.Quote:
Originally Posted by wyattearp
Impressive! You have several hundreds of thousands of dollars to invest?Quote:
Originally Posted by wyattearp
If not - the SEO and website will be the least of your worries. :smiley2:
Lol....It doesn't take "several of hundreds of thousands of dollars" to invest to start this off. I think I have the financing under control. Thanks for the input though!:smiley36:
Really? Interesting, the capital requirement is what ended my pursuit of "the dream".Quote:
Originally Posted by wyattearp
I think it depends on how big you want to start off. If you want to rent a warehouse for your stock, spend thousands upon thousands in advertising and marketing from the jump, then maybe. But if you want to start small and grow regionally over time, then it's very possible to do.
Growing your business to the level of Cigar.com or Thompsons for example takes time.
And relentless, spirit crushing, mind numbing telemarketing in Thompson's case...Quote:
Originally Posted by wyattearp
Ahh....Telemarketing! I'm going to try to stay away from that type of marketing. Still developing the advertising and marketing strategy as of now and open to any feedback and/or ideas for it.
I take it you're not a fan of the telemarketing?
The idea that you're looking to be a "distributor" in favor of just being a retailer suggest you have grander plans than just starting up a website. And I have some sense of what it takes to be a retailer - and you're not even truly in that ballpark yet...Quote:
Originally Posted by wyattearp
If you're doing this as a hobby, it sounds like you're on the right track. If you're truly looking at doing this as a serious business enterprise - I think you've been provided some very sage advice which is contrary to the way you seem to be heading. :smiley3:
Safe travels! :smiley37:
All of the advice has been appreciated so far and yes this is a hobby of mine. I'm a firm believer that you can start something as a hobby and grow it into a successful business. When the time comes where it becomes more than just a hobby I would take the necessary steps to expand and accomodate the demand by creating more overhead if it makes business sense (profit margin growth).
I understand Rome wasn't built in a day and it takes time, superb customer service, and demand to grow anything. I'm comfortable with that.
I don't think you need " Hundreds of thousands" of dollars to build your hobby from the start if your strategy is solid.
Geez... I hate to rain on your parade, wyatt...Quote:
Originally Posted by wyattearp
You ask the members of this community - sight unseen - for advice with licensing, etc. This would seem to indicate that you don't know what you should be doing with licensing, etc. You want to eventually develop a "Thompson" sized business, yet you are intent to do it starting from your basement? Aside from you seeking business advice from a cigar board - what have you done to develop your overall business plan?
I don't know what the specific stats are (I'm sure they're out there somewhere) - but I can tell you from personal observations and experience that what you're planning on doing is far more likely to fail than succeed. As a matter of fact - I'd suggest the failure rate is well in the high 90% range. It sounds as though you're already getting way over your head - and you haven't even started up the business.
I wonder if Young Forbes still stops by. Perhaps he can set you on the right path to financial success. :smiley20:
Here's an interesting tid-bit for ya wyatt.....know where I got my stash of "real" cigars started?
From a bankruptcy auction. :smiley2:
Bankruptcy Auction? Can you elaborate on that?
Thanks
Sure, a local cigar merchant went bankrupt and I bought a shitload of cigars very reasonably at the auction. Too bad for me I had only been smoking real cigars for a month or two when it happened. Shitty cigars soaked in charcoal fluid make great kindling for the wood stove though.Quote:
Originally Posted by wyattearp
I think over time if you stay steady with a business strategy and open to advice/feedback, options and opportunity you can grow a small business, especially if it's an online business.
Other online Distributors that we all order from didn't become successful overnight. It takes time, patience, strategy, solid business plan with projections, and negative feedback to motivate you.
Capital is a huge obstacle in the start of any business.
Does anyone know the source to find information on licensing and distribution of online sales (cigars - tobacco) in other states? For example, if I obtain my tobacco and distribution license in the state of California where my business license is and somebody in Nevada, Arizona or another state orders from my site a "Sampler" pack or box of cigars to be delivered to them, do I have to have another tobacco and distribution license in that state since I'm selling to a customer in that state?
I think that is covered in Article I , Section 8 , Clause 3 of the United States Constitution, but I'm a Canadian, so YMMV.