PCA Magazine Fall 2019

PREMIUMCIGARS.ORG SEPTEMBER-OCTOBER 2019 | PCA The Magazine 45 seen in a different light and can have a real impact on specific brand sales. Dougherty sees the premium space as anything between a customer’s shoulders and knees. “If it’s above the shoulder or below the knee, it will get overlooked and is of minimum value,” he says. “If you have a humidor that has 20-foot ceilings, that’s great, but no one is going to buy anything above their shoulders.” So for larger humidors, product rotation becomes an even higher priority. Outside the humidor, the most valuable space in a tobacconist’s shop is near the register. It can be a challenge to keep this area neat and clean while stocked with enough product to feed that impulse-buy desire in most customers. “I’m always amazed howmany people just pick up some of our inexpensive cutters and torch lighters when they’re at the register,” says Saunders. “We sell tons of that stuff and most of those items are higher margin too, so you don’t have to sell that many of them before it really adds up in a hurry over a month.” Dougherty also suggests engaging with your sales reps to get their insights and ideas, particularly as sales reps see so many examples of merchandising—both good and bad—within their sales territory. He says: “Every day a salesperson will come in and ask a retailer, ‘Can I change my displays?’ But the retailer rarely asks, ‘What would you want to change and why?’ I want to say, ‘Well, I want to change it because we have these contract protected brands, and brick-and-mortar-only cigars, and some of the Arturo Fuente cigars sell so quickly that you don’t realize that you’re only focused on margin, but the dollars these brands are generating for you are so great. We want to put them in this prime position.’ So challenge your salesperson, ask your salesperson, engage them. ‘Why would you want to make those changes? What is your strategy?’ I think that’s really important.” Merchandising is not a one-and-done fix for the retailer. Effective merchandising can only happen by trial and error and consistent attention to detail. When is the last time you really looked around your store? What changes could you make in your humidor to put the cigars in the best possible light? How well do you display sale items? Are all your products priced clearly and properly? To get the most out of your merchandising, these are the types of questions that will start you on the path to more sales. EFFECTIVE MERCHANDISING CAN ONLY HAPPEN BY TRIAL AND ERROR AND CONSISTENT ATTENTION TO DETAIL. “Every day a salesperson will come in and ask a retailer, ‘Can I change my displays?’ But the retailer rarely asks, ‘What would you want to change and why?’” - Michael Dougherty