Tough Times = Better Business

I have been getting lots of emails from Tobacconists worrying about, and struggling with, the current economic downturn; not to mention innumerable conversations on the topic. Overall, I would say half of the retailers I have spoken to say business is down significantly. The other half are either flat, or [claim to be] growing - but much of the growth is from newer stores. Either way, these are difficult economic times and many people are hurting.

My retail businesses are down a few percentage points. To me, this is a significant problem: if it wasn't for [some of the annual vendor] price increases, we might be down 8 to 10%! And of course there is the rising cost of freight, energy, rent, and everything else. Ultimately, if you're not growing, you're declining.

Now we must do some things to CUT COSTS:

• Re-negotiate our CC* processing fees
• Re-assess our phone line(s) usage
• Tighten up Labor
• Look for more profitable products
• Start charging for freebies, like water, shipping, etc...
• Buy more generic packaging materials: zip-top bags, shopping bags, etc... (in fact, we have cut back to just one size zip-top bag for cigars - I really miss the 4x8 but the 5x10 fits everything)
• Clean & Organize! This process will help you find dead weight, inefficiencies, and opportunities

*The credit card processing fees, in particular, are a great place to start: get a quote from their competitors and ask your company to match the price - last year we saved over $500 per store!

While cost cutting is important, I am much more fond of re-investing, making improvements, and enhancing service. I have been through tough times before and always made money. The only way I know how to get through them is to be proactive; not to shrink in fear - don't make decisions rooted in fear. Already this year, my shops have seen new computers, cabinets, furniture, products, and more. Keeping the shops fresh and invigorated is imperative during tough economic times: Customers Will Notice! Even if customers don't say something about your proactive efforts, they will notice both consciously and subconsciously.

I think the worst thing you can do during difficult times is:

• Shrink Inventory Noticeably
• Change Your Vision (i.e. get rid of great cigars and replace with bundles)
• Decline Service Standards (Step It Up!)
• Complain to Your Customers (Don't Lie & Don't Whine)
• Make Decisions Based on Fear

If anything, this is the time to be grateful for your existing customers: say hello, please, and thank you; fulfill special orders; ask them what they want and exceed their expectations! Frankly, a great cigar is just what we need during difficult economic times. We are in the business of selling relaxation, quality of life, decompression, escapism, and camaraderie - the cigars are consumable but the value is priceless. I see many new and old faces coming through the shop lately and they look like they need a cigar! This is a great time to provide a sanctuary to your customers - they will be grateful for it.

** If you need help, suggestions, advice, ideas, or would like to contribute some, please send us an email.

The Fishmonger: Hecho A Mano series

As I wrote in the Butcher's Hecho A Mano series, " they labor away to honor their product, their consumer, and their time. Always staying true to an idea or ideal: this is art. Ultimately, they have lives with real value which I feel fortunate to share in".

While this entry is titled The Fishmonger, that is an understated misnomer because the specialists at Metropolitan Seafood Co. (MSC) are far more than vendors; in fact they elevate the concept of Local Merchant to high art. Calling these gentlemen fishmongers is like calling a Sommelier a 'booze merchant' or a Certified Tobacconist a 'tobacco peddler'. The passion and commitment to their product at MSC is unparallelled and inspirational. It is only surpassed by their attentiveness and dedication to their customers. The owner, Mr. Mark Drabich has a twinkle in his eye the moment a customer comes in and the entire staff shares his enthusiasm for service. When there are no customers, Mr. Drabich has what I like to call the "eye of the tiger" - he is Product & Operations Focused. He walks around with a fervor for quality and perfection!

The first time I stepped into MSC I was enthusiastically greeted by the manager Colin Sears, who had just returned from a vacation; a fishing vacation. It was my sense then, as it has been every other time I have visited, that nothing was more important to these professionals than my satisfaction and enhanced appreciation. I'm talking about service so good that you feel like you are at the center of the universe; like the only thing that matters is your taste and fulfillment. Nothing could be more rare in today's fast paced, mass produced, commoditized and homogenized world. But thankfully, there are still places and people who care about quality; quality of product, quality of service, and quality of life. If Leonardo DaVinci was a fishmonger, he would have worked for Metropolitan Seafood Co.

* Just to list a few of the things I have learned: yes they will clean, scale, and prepare any kind of fish, shellfish, and/or shrimp exactly the way you want, at no extra charge - grill fish, soft shelled crab, and scallops on a medium heat (unlike meat) - when you clean a soft shell crab, you start by cutting off the face and then pull out the guts - fresh dry scallops can be eaten raw and they melt in your mouth - you can create a pseudo fish grilling basket with aluminum foil - don't be afraid to use cumin and garlic on your fish - Chilean Sea Bass is a fancy marketing term for Padagonian Rock Fish (and there is a price premium for fancy names) - there are organic farm raised fish - and sooo much more.

** I'm sure I will be writing more about MSC since the lessons I have learned about service are too numerable to mention here... so stay tuned.

TOBACCONIST WHISPERER

I like to think of Tobacconist Whisperer as my own little management theory, but in reality it has been borrowed from the original Horse Whisperer(s) and Dog Whisperer (Cesar Milan). It has taken me almost fifteen years to get to the point where I can use the Tobacconist Whisperer techniques and I am finding them just as valuable as anything I have ever learned from Peter Drucker, Ken Blanchard, Tom Peters, or any other management guru.

Tobacconist Whispering is the art and science of understanding natural human behaviors, instincts, and reactions; then using that knowledge to illicit desired actions from Tobacconists and Customers. Tobacconist Whispering is employed through Calm & Assertive behavior.

It is easy enough to understand that stress and angst lead to more stress and angst. A stressed manager will stress their Tobacconist who will in turn stress the customer. No matter how hard we try, our own dispositions and body language will affect and effect those around us.

For example, recently I walked into my Princeton store to find a Tobacconist on the floor trying to fix the fax machine while another was fussing with the credit card machine. The machinery had gone haywire and there were customers coming in and out of the store. Both of my Tobacconists had flustered and frustrated demeanors. One had their brow sweating and the other looked ready to strangle a chicken. I'm sure a decade ago this would have led me to get angry and frustrated as well. But I now know that all of these problems can and will be fixed; they are just machines after all. The only variable worth focusing on in this mini-catastrophe was the CUSTOMER. Our job is always to focus on the customer and not let anything get in the way of that. If you focus on the customer then you realize that nothing else matters. We must encourage that customer to come back through our good service and having two hysterical or frustrated Tobacconists does not help. So I walked into the shop and focused on being more CALM than ever, telling employees to RELAX and FOCUS ON THE CUSTOMER. I used my body language, tonal inflection, and words to CALM the situation and get everyone re-focused. If I had come in cursing, barking, or overly assertive it would have compounded the already downwardly spiraling situation.

The Tobacconist Whisperer techniques are about letting your mood and emotions set the tone for what you want out of people, and lead by example. Consider your employees (and customers) like your loved-ones and ask yourself: How do I want my loved-ones to be treated? What do I want my loved-ones exposed to? Treat them with calmness, respect, and fairness. You are in a position to create a perfect world for yourself and it starts by LEADING BY EXAMPLE.

Every retail Tobacconist knows that when it rains it pours. Often we are dealing with broken humidifiers, machinery problems, schedule changes, POS issues, and much more. All the while, we must provide a comfortable and hospitable environment for our customers: that burden/responsibility/honor rests on our shoulders, so we must lead by example.

And the Tobacconist Whisperer techniques work equally well on customers. Through our body language, tone, and words we can manage our customers as well. One of the first things I tell our Tobacconist Apprentices is that "You never know what a customer has been through on a particular day". If someone comes in and is nasty or angry, that is OK. Perhaps they received terrible news that day or lost a loved one: these things happen every day. It is not our job to judge them, but rather to do our best to bring something pleasant and positive to their day. As humans, retailers, and Tobacconists we must be willing to accept and forgive in order to move forward. Conversely, if a customer is ever belligerent or too nasty, every one of my Tobacconists is authorized to throw them out forever; because no one deserves to be treated with disrespect. There is a lot of grey area here, but if you train and educate with the right values your Tobacconists should be able to make the right decision without letting their egos or emotions get in the way.

Ultimately, Tobacconist Whisperer is about being cool and collected under pressure; body language counts! With December and the holidays around the corner, these are excellent values to be reminded of. The ten days before Christmas are extraordinarily challenging for good retail Tobacconists: we handle ten times our usual traffic and try to maintain our own high standards, since we want those customers to come back during the year. Ironically, the majority of our holiday customers are the most challenging, question and doubt-filled customers: they are called SPOUSES. So my advice to myself and every other Tobacconist this year is buckle down, be cool, and focus on the customer. Everything else should take care of itself...

POSTSCRIPT: The Tobacconist Whisperer content will be available through Service College. In the tradition of our open-source Academic Curriculum, TU encourages all credible and Certified Tobacconists to contribute their knowledge, thoughts, and opinions to help their fellow Tobacconists excel. Please let us know if there is anything you would like to contribute to Service College.