Tuesday, October 16, 2007

Planning A Future (part I)

Judging from this picture (taken in Disney World) my mother recently sent me, I was a young aspiring Tobacconist as early as the 1970s. But it wasn't until the 1990s that I started fighting against the first wave of smoking bans in Princeton, NJ. Like the rest of those battles throughout the country, we eventually lost. Just like we lost the battle against ever increasing cigarette and cigar taxes as well. I can count a handful of last minute tax increases which were followed by letters to my retail company telling us we must pay 'x' amount of floor tax on whatever arbitrary date the legislators picked. Could this ever happen to Microsoft or GE? I doubt it. But they say small business is the heart of America...

I can't imagine any other industry having to deal with such unpredictable and debilitating legislation. But retail Tobacconists have persevered around the country. Somehow, we have weathered each of these storms as well as the internet/mail-order age and not disappeared off the face of the earth. It seems miraculous, and I don't know that this would be possible in any other industry! We are lucky to have loyal and passionate customers. Unfortunately, we do not have enough loyal and happy customers to effect serious taxation and policy change at the state or federal level. This is not because we are not a morally, intellectually, or politically righteous group, but rather because of the hysterical and reactionary nature of the times we live in. I call it a "Shock & Awe Society". Eventually, I believe we will be able to undo much of the hysterical legislation we have had imposed on us; after all, nothing is permanent and eventually we will all have to agree to respect each other and live together, both smokers and non, big and little business, and politicians and civilians. In our society there must be room for all perspectives and individual freedoms. At least, these are my hopes and dreams...

On Thursday, Oct. 18th, we will see if we have to face yet another repressive and life-threatening tax hike. I was going to write this after Thursday, but I realized it doesn't matter when I write it. Tobacconist University will continue to move forward no matter what the S-CHIP fiasco turns out to be, just as I will move forward with my retail company, no matter the outcome. I decided long ago to stick with the ship, and go down with it if necessary. My worst case scenario ambition is to be the last Tobacconist standing. Perhaps I am an idiot. But I would like to think that I am a man of conviction. I would like to think I fight for what I believe in, and in this case that is "Preserving Luxury Tobacco for Generations to Come". And above all, I believe in leaving the world a better place than when I found it.

It was past midnight this Saturday morning and I was in the shop with a few Tobacconists and a famous cigar maker. I was talking about the saga and strife that retail Tobacconists have suffered through, and our lack of PROACTIVE help and solutions. I found myself getting very emotional, another few seconds and my eyes would have teared up. I was talking about a future for Tobacconists. We may be the most challenged industry on the planet and it is a terrifying landscape. Frankly, I think we get very little help, and the first time I have ever seen the whole industry rally against a tax was when S-CHIP was announced; that is the first and only time I have ever seen cigar makers rally together to fight a tax or any anti-tobacco legislation. I suppose it is darkest before dawn.... so maybe they are ready to wake from their slumber. But for many retailers, it may be too late; and this probably suits the mail order companies just fine.

Recently I learned that one of the owners of the largest mail-order cigar businesses in the world doesn't even smoke cigars. When he purchased the company, decades ago, someone told him it would cloud his 'Business Judgement'. So he never smoked, and over the years he grew his company into a powerhouse brand, which I will not mention here. This mentality and lack of honor and passion for our products is part of the problem. This is why our industry has had its head buried in the sand for years, while hiding behind 'Big-Tobacco', waiting for them to do something... But 'Big-Tobacco' has no credibility, nor should they. Instead, they focus on their profit and loss statements, quarterly dividends, and growing in the 2nd and 3rd world. If you've owned their stock over the last decade, you have done very well.... congratulations. But during that time, Tobacconists have suffered a great deal, and consumers are losing their rights and places to smoke.

to be continued...

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