Business Summary:
This is a unique business opportunity which combines retail, wholesale, and the manufacturing of fine cigars. The store is located in a small strip mall on a major highway. The strip mall is well positioned at a traffic light with easy in and out access from the highway and cross street. Hours of operation are Monday thru Saturday 9AM to 9PM and Sunday from 10AM to 6PM. It operates with two full time and one part time employees.
The business imports fine tobacco for the rolling of its many blends of high quality cigars. The owner has developed direct relationships with growers and exporters that enable the business to have a competitive pricing advantage. With 70% of the business done in its private label cigars that generate approximately 80% gross profit, this contributes to a very healthy cash flow.
Additional sales come from the selling of name brand manufactured cigars, cigarettes, humidors and pipes. As a traffic builder lottery tickets are also sold. For additional profit they do special engagement cigar rolling at Bar-Mitzvah’s and weddings. Another profit center is the wholesale business which accounts for about 5% of the sales.
In the back of the store is a smoke room set up with sofas and two TV’s with Direct TV. This room is used for relaxation, meetings and can be used for bachelor parties. The owner advertises by placing ads in local newspapers, emailing his customer base and attending charity events where he hands out his business cards and complimentary cigars.
Sales growth has increased through the years – 2007 sales are up 26%, 2008 sales are up 57% and for the first seven months of 2009 sales are up by 20%. The owner will train the new buyer in running this business including introduction to his suppliers, growers and exporters. Included in the sale are the formulas for the cigar blends and the business website.
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