Retail Tobacco Shop
Asking Price: $119,000
Gross Revenue: $321,139
Cash Flow: $50,632
Location: Schenectady County
The company is a well-established cigar, pipe and roll your own tobacco shop. The tobacconist carries products in various forms and most related accoutrements, such as pipes, lighters, matches, pipe cleaners, pipe tampers, ashtrays, humidification devices, hygrometers, humidors, cigar cutters and more. The company deals primarily with walk-in customers. It is a cash only business with no accounts’ receivables. All inventories are paid for when purchased, even though all suppliers offer credit terms.
Year Established: 2004
Facilities: The retail space is a 24’ x 50′ rectangle, totaling 1,200 square feet. Other tenants in the Plaza include a Liquor Store, a Fitness Center and 8 additional apartments on the second level.
Competition: There are three competing tobacco stores within a 20 to 25-minute drive. The relative size of the operations is unknown.
Growth & Expansion: Possible enhancements to the business would include some form of signage on the south corner of the Plaza. Holding more “cigar events”, adding new product lines and doing business with the local golf courses should all increase sales volume. Bringing in additional lines to expand the walk-in humidor is another possibility, as well as investing in a smoker’s lounge, which would require a move to larger space, or possibly bringing in cigar rollers for the afternoon, to roll for customers. Establishing a company website, to develop an on-line shopping presence, should be the first priority.
The owner is considering adding an additional 1,200 square feet of space which recently became available, adjacent to the Tobacco shop and converting it into a “smoker’s lounge”. The addition is something that the current and previous owner of the shop had always wanted to do, knowing that it would most certainly increase sales, but were limited by the original floor plan.
About the Sale
Financing: The owner would prefer cash at closing.
Support/Training: The current owner will stay on for a reasonable and negotiated transition period to train the buyer in all aspects of the business operation.
Sale Objective: Due to health considerations, the owner plans to relocate to a warmer climate.
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