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May 12 , 2006

 

 

A Newsletter of the National Association of Tobacco Outlets, Inc.

By: Thomas A. Briant, Executive Director

January 2006                                                                                              Volume 6, No. 1

Cigars! Cigars!
NATO’s first ever member cigar survey should put to rest any perception in the industry that tobacco outlet stores are primarily retailers of cigarettes. Based on survey responses from more than half of NATO retail members, the survey tells the following story:
  • 91% of surveyed stores sell premium cigars.
  • 98% of surveyed stores sell domestic cigars.
  • 48% of stores that sell premium cigars have walk-in humidors.
  • 58% of stores surveyed have wall case humidors.

As indicated by survey responses, members offer numerous brands of premium cigars for sale including cigars manufactured by Altadis, U.S.A., Arturo Fuente Cigar Co., Ashton, CAO International, Caribe Imported Cigars, Cusano Cigars/Domrey Cigars, Davidoff of Geneva, Drew Estate, General Cigar, Graycliff Cigar Company, Havana Honeys, Heavenly Cigar Company, Indian Tabac Cigar Company/Rocky Patel Cigar Company, Inter-Continental Cigar Company,

  
J.C. Newman Cigar Company, Nat Sherman, Padron Cigars, Santa Clara, Torano Cigars and Victor Sinclair Cigars. Similarly, NATO retail members sell a variety of domestic cigars manufactured by Altadis, U.S.A., John Middleton, Lane, Ltd. and Swisher International.

The responses from NATO retailers also demonstrated that most of the walk-in humidors are larger than 100 square feet with many being hundreds of square feet in size all the way up to 2,000 square feet. To augment display space or in lieu of a walk-in humidor, member retailers have installed wall case humidors in their stores to allow customers to easily select their favorite cigars.

One of the most important conclusions that can be made from the survey data is that the line between “tobacco outlets” and “tobacconists” is virtually non-existent. NATO members are true tobacco retailers offering their customers a broad range of tobacco products, including many brands of premium and domestic cigars. This is why an increasing number of cigar manufacturers have become members of NATO and support the association’s industry leading grassroots legislative programs.		  

NATO Monitor/January 2006
President’s Message

Dear NATO Members:

I knew all along that NATO tobacco outlet members were true tobacco retailers. No one had to convince me that our members had diversified their product selection to include a wide variety of domestic and premium cigars to complement the sale of cigarettes, smokeless tobacco, pipe tobacco, RYO and tobacco accessories.

Now we have proof that NATO members are “tobacco” retailers in every sense of the word. The first ever NATO Cigar Survey was completed just last month and responses from over half of all NATO members show that more than 90% of the NATO members surveyed offer their customers a fine selection of premium and domestic cigars. The results from the survey should put to rest once and for all the notion that tobacco outlets sell primarily cigarettes.

Tobacco retailers of every kind including, outlets, tobacconists, convenience stores, liquor stores and grocery stores face the same challenges of fighting unfair tobacco taxes and tobacco restrictions. We are all more alike than we are different and it is these similarities that should make us realize how important it is to work together to protect the right to sell and use tobacco products.

-Velma Hartley, NATO President

 

2006 Legislative Outlook

The 2006 legislative year is picking up where the 2005 state legislative year left off. Bills have been introduced in states to increase cigarette and tobacco taxes, raise the legal age to buy and use tobacco products and ban smoking in restaurants and bars. Also, a new strategy being used by anti-tobacco groups is to gather signatures on petitions to place a tobacco issue on a statewide election ballot.

For the elections this November, anti-tobacco groups are pursuing ballot initiatives in Arizona, California and Missouri to increase the cigarette tax or the OTP tax rate and in Ohio to adopt a statewide smoking ban. In response, NATO has initiated petition drives in these four states aimed at informing legislators about the unfairness of these ballot questions. Also, in Ohio, NATO is urging legislators to pass a statewide bill that accommodates smokers and non-smokers in hospitality establishments.

Key Retail Responders

NATO is seeking a retailer from each state to be designated a Key Retail Responder who will be contacted first when tobacco bills are introduced and work with NATO staff on such matters as testifying before legislative committees. If you are interested in being a Key Retail Responder, contact NATO Executive Director Tom Briant at 1-866-869-8888.

 

NATO Monitor/January 2006

Security System Savings

 As a new membership benefit, NATO is recommending ADT ® Security Services, Inc. as the preferred security system provider for association members. ADT has been in business for over 130 years and has the experience, knowledge and dedication to meet the security needs of tobacco retailers and wholesalers.

Being the preferred provider, ADT will offer members discounts of 5% on the system installation prices of intrusion detection systems, and 10% on the system installation prices of video surveillance and access control systems. A more detailed explanation of this new benefit will be mailed to NATO members next month. This benefit is one more way that NATO is partnering with industry leaders to bring quality services at lower prices to association members.

NATO Expo Update

All NATO members are encouraged to attend the 2006 NATO Expo Conference and Trade Show to be held March 27-29 in Las Vegas, Nevada. The enclosed brochure and registration form has all of the show information you need to plan your trip. In addition, on the evening of Monday, March 27 th, NATO Expo attendees will attend the NATO Gala Awards Dinner. Invitations to this semi-formal event will be mailed to NATO members in early February.

 

 

Join a NATO Committee

Members are encouraged to join a NATO Committee to become more involved in association efforts. The open committees include Marketing, Survey, Mem-bership, Government Affairs and Membership Benefits. To join, contact Tom Briant at the NATO office at 1-866-869-8888.

Board of Director Elections

NATO retail members elected to a new two-year term are Velma Hartley (The Tobacco Place), Dave Kepler (Smoker’s Choice), Steve Norman (Smoker Friendly), Frank Armstrong (Blue Ridge Tobacco) and Steve Millman (The Cigar Box). NATO manufacturer members elected to a two-year term were Mike Cusano (Cusano Cigars), Harry Preston (J.C. Newman Cigar Company) and Bob Culley (Liggett Vector Brands). A special thank you to Don Attilio of Cigar Cigar, John Boehm of R.J. Reynolds and Dean Rouse of M & R Holdings for being board candidates.

Welcome New Members

New members recently joining NATO are Bags of Bags, DaBomb Products, Havana Honeys Cigars, Zippo Lighter Company, Rocky Patel Cigar Company, Sanco Products and Tobacco Import, U.S.A., Davidoff of Geneva (CT), Inc. 		 

NATO Monitor/January 2006

Credit Card Savings

 NATO retail members should make a New Year’s resolution to sign up for credit card processing services through NATO’s preferred provider First Data Merchant Services. In the past year, many members have signed up for the low credit card processing rates offered by First Data.

David Newman of Cigarette World in Boardman, Ohio signed up and discovered that his store was able to secure the same low processing rates as his larger chain store competitors. According to David, “First Data showed me that I would be able to save money in different ways. The first savings was in my per transaction fee. The second savings was in my percentage rate.” He also signed up for First Data’s Telecheck check guarantee system and has eliminated depositing checks while saving bank fees and doing away with bad checks. He highly recommends that members explore the cost savings with First Data and Telecheck.

As the President of eight Smoke’em Phoenix stores, Bob Roberts made the change over to First Data in April of 2005. He has been very pleased with the professional customer service offered by First Data and his stores “have saved between 3/10’s and 5/10’s of a percentage point on processing fees, experienced completely error free 		 

credit card postings and saved more money with the free supplies for terminals.” Bob invites NATO retail members with questions about his company’s experience with First Data to call him at his Smoke’em Phoenix office at 480-220-5433.

Below is the listing of the credit card fees being offered to NATO members:

  • VISA/MC Fee: 1.79% + 10¢ Interchange Fee (Retail), 2.15% + 10¢ (MO/TO), 2.39% + 25¢ (Internet), and 2.20% and 10¢ (B2B).
  • Debit Card Fee: 25¢ plus Network Charge.
  • Transaction Fees: None.
  • Application Fees/Annual Fees: None.
  • Paper/Supplies: Free; retailer pays shipping
  • American Express/Discover Fees: Rate is set by American Express and Discover directly based on average ticket and processing volume, plus 25¢ per transaction.
  • Monthly Statement Fee: $10 for first store; $5 each additional store.
  • Terminal Fees: $50 to reprogram terminal.
  • New Terminal, pinpad, check reader, 100 gift cards: $49.00/month; 48 month lease.

To obtain more information about this money saving credit card processing service, retailers can contact Executive Director Thomas Briant at 1-866-869-8888. You must be a NATO member to take advantage of these special credit card rates.

 

 

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