Posted by: nepalishrestha September 21, 2011
Subway/Smoke Shop/ Liquor Store/ Gas Station
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 NOO !!your concept on smoke shop is completely wrong . Smoke shop dont run on high margin it runs on huge volume and less margin on a carton of cigarette you sale you only have 6-8% margin and yes dont forget if a customer uses credit card it takes away your 3 %margin as the credit card company charges you 3% for processing the customer card . On an open pack of cigarette you make 9-10% on premium cigarettes (marlboro, camel) while on generic brand you make 10-12% only. Next thing is cigar yes you do have good margin on cigar 20-30% but  you need to have a humidor (it keeps the cigar fresh ) and its pretty hard to maintain (but you can do it . pretty expensive up front to buy ). To make $4000 a week on smoke shop you atleast has to have a sale of $45000 minimum per week  !!!and talking about merchandise on smoke shop you dont frequently sell it you sell it once in a while and yeah you do have a high high margin on those item and i do agree on herbal incense thing toooo ...cigars are expensive ... your initial cost including alarm, phone line, counter, register, cigarette rack, credit card machine, fire extinguisher, banners, sign board and inventory will atleast come up to 25-30 k !!!!once again brother i am not discouraging you but just giving you a real picture and yes the hardest part is you have to tun after this marlboro and camel rep like a dog unless they sign up you on contract .....and yeah i do wish you all the best keep this things and cost in mind while opening oneeeee!!!good luck pashupatinath lay sapai ko kalyan garum !!jai nepal

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