Things to Ask Yourself When Adding a New Tobacco SKU to Your Set
Accounting for up to 30% of your overall retail revenue, there’s no question that the tobacco category is an important, profitable, part of your store. With the vast amount of tobacco products currently available on the market, properly managing your tobacco offerings now requires meticulous planning and plays a pivotal role in making the difference between sales that are fruitful versus sales that are stagnant.
So, what are some of the best practices to mitigate risk when ordering new tobacco products? Before making any adjustments to your tobacco set, ask yourself these questions to ensure you’re ordering product that accelerates your tobacco sales and offers you the greatest return on your investment.
1. Are you working with a legit brand?
In the world of tobacco, compliance is everything. Tobacco brands that fail to comply with federal and state laws put you and your business at risk. Simply put: their products can be on the shelf one day, and banned the next. Be your own advocate and do your research to make sure you’re working with tobacco brands that are well-known, reputable and trusted within the industry.
2. If the brand is new, is the manufacturer reputable?
When working with a new brand, not only is it important to check their standing with the FDA, it’s also crucial you consider the reputation of the manufacturer. Are they equipped to provide you your promised product on time, every time? Are you able to get it one week, and not the next? Do they have a history of delays and out of stocks? You should be working with brands that fit your store needs and deliver every time.
3. Does the product have a guarantee?
When considering adding a new tobacco SKU to your set, go for products that are 100% guaranteed. This is a big one. If you order a new tobacco product and it doesn’t move on the shelf, make sure you have the ability to send it back. Different brands move differently in different markets and sometimes a product just doesn’t work for a store. If you’re not 100% satisfied with your new SKU, there should be no risk to you.
4. What types of support programs will be provided to promote the product?
Ordering a favorable, high-quality, tobacco product is not enough alone to accelerate your tobacco profits. If your bringing in a new product, the brand you’re working with should also be helping you move it out. Will a sales rep educate you on the product so you can train your clerks on selling it? Does the brand offer incentive programs and promotional opportunities to help you push the product and receive a higher return on your investment? Will there be merchandising and signage support to help get eyes on the new product and drive traffic to your storefront? Is there ongoing marketing support you can leverage to boost sales and if so, is it free? If the answer is no to any of these questions, consider passing on the product. Marketing and sales support play a MAJOR role in driving your new product out and taking your tobacco profits to the next level. Opportunities are unique for each storefront as there is no one-size-fits-all plan. You deserve a trusted supplier partner who provides tools for your success.
