http://community.csdecisions.net/ Convenience Store Decisions Community Topic: Customers Requesting 3rd & 4th Teir Cigs en Fri, 04 Jul 2008 19:20:29 +0000 http://community.csdecisions.net/topic/6#post-7 Sun, 30 Dec 2007 16:02:28 +0000 admin 7@http://community.csdecisions.net/ <p>My thoughts are if you dont stock them, they will go some where else to buy them, just as the case in my own store. All the tobacco stores in my area sells them, as well as my rivals do. You might as well get in on those sells, as well. An example of one brand, I give $1.05 a pack, and sell them for $1.49. I also stay in compliance with PMP, and RJR. Go for it. </p> http://community.csdecisions.net/topic/6#post-6 Sun, 30 Dec 2007 16:02:14 +0000 admin 6@http://community.csdecisions.net/ <p>We are getting more and more requests from customers that want third and even fourth tier brand cigarettes because they are cheap. I am wise to start giving more room on the shelf to these brands?</p> <p>-----</p> <p>"I compete with Indian reservations and the Internet so these low-cost brands are good for business, but I don't trust their quality. Is there a consensus among retailers about how to deal with these products?"</p> <p>Each store needs its own tobacco category strategy that takes into account customer preferences, competition, brand value, pricing, short term vs. long term, and most important, the gross margin dollars you need the category to contribute to the store's overall performance. Is it more desirable to sell 100 packs a day at $5, or 200 packs at $2.50? Do smokers who trade down spend as much on non-tobacco items when they visit as those loyal to premium brands?</p> <p>Each store's answers will be different. It infuriates me that government tolerance of tax evasion by customers of Indian and Internet outlets is forcing you to face these difficult choices. </p>