Distributor Business

**wyattearp** · 12-07-2010, 01:53 PM

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

**ggiese** · 12-07-2010, 02:50 PM

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.

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?

**wyattearp** · 12-07-2010, 03:01 PM

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

**ggiese** · 12-07-2010, 03:08 PM

Originally Posted by wyattearp

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.

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!

**wyattearp** · 12-07-2010, 03:20 PM

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....

**ggiese** · 12-07-2010, 11:15 PM

Originally Posted by wyattearp

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....

Impressive! You have several hundreds of thousands of dollars to invest?

If not - the SEO and website will be the least of your worries.

**wyattearp** · 12-08-2010, 01:39 PM

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!

**mrtr33** · 12-07-2010, 03:27 PM

Originally Posted by ggiese

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.

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.

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!

**wyattearp** · 12-07-2010, 03:33 PM

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"

**EGQ** · 12-07-2010, 05:26 PM

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.

**wyattearp** · 12-07-2010, 05:55 PM

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!

**ggiese** · 12-07-2010, 11:12 PM

Originally Posted by wyattearp

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"

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,.