How to open a tobacco kiosk
Despite the massive enthusiasm for a healthy lifestyle, people remain smokers. Cigarettes are one of the types of goods where there is no need to doubt the benefits. This indicator is the main one when a future entrepreneur chooses what kind of business to do.
People are frightened with pictures on cigarette packs, they talk about the dangers of smoking – there are no fewer smokers. Therefore, opening a tobacco kiosk is a promising investment of money.
Tobacco is a commodity that does not deteriorate. It is in demand among buyers. Conditions for transportation, storage are easily observed.
This is useful in terms of paying rent. It takes up little space and you will not go broke on cost. Cigarettes are goods that are bought as they pass by. Shopping at a kiosk takes less time than shopping in a store. And there is no queue at the kiosks.
How to open a tobacco kiosk
Tobacco business: where to start, business registration
The first question that an entrepreneur has is whether a license to sell cigarettes is needed? According to the current legislation, licensing and obtaining a document for the sale of tobacco products is not required.
First you need to register an individual business or a limited liability company. This way you can simplify your reporting and tax rate calculation system.
If you plan to cooperate with legal entities, then a limited liability company is sufficient. You won’t have problems with government services if you pay taxes on time.
Premises and place
The problem for businesses is that it becomes difficult to find premises of the required size for a moderate rental fee. In the case of opening a cigarette kiosk, the entrepreneur will not face this problem, because he will only need a few square meters.
The cost of building a kiosk shouldn’t be high either, unless you’re going to make it out of gold. And if you find an already built kiosk in a place where many people walk (metro station exits, train stations, markets, busy streets) and which is rented, then you just have to conclude a lease agreement with its owner.
There is no need to open a tobacco kiosk where there are already similar outlets. In this competitive battle, you will be losing.
Do not place a cigarette stand close to kindergartens, schools, sections, otherwise you will get unpleasant problems with the law.
Assortment of goods
A tobacco kiosk should sell cigarettes – from budget to expensive ones. All types of cigarettes – with and without a filter, thin and regular, flavored, strong, light – should also be in different brands and in assortment.
Don’t forget about cigars and cigarillos. They may not be bought as often, but they should be on sale. This also includes pipes and tobacco for them – several options.
Hookah smoking is a popular activity. Therefore, include hookah tobacco in the assortment.
And there should be related products – lighters, matches, key chains.
Make sure that the kiosk has a showcase and that the location of the goods is visually accessible to customers. Also write the price under each type of cigarette and tobacco.
Another plus to the idea of opening a tobacco kiosk is that you don’t need complicated equipment. All you need is a cash register and a safe to store the proceeds. You can purchase a special cabinet for cigars that require certain storage conditions (temperature, humidity). But hardly all existing kiosks have such equipment. Regular cigarettes may well be stored in the packs in which they were packed at the factory.
Staff and work schedule
You will need shift salespeople. To achieve the benefits, the cigarette kiosk must operate around the clock. Most often, the system of remuneration for sellers in this matter is based on the percentage principle. That is, sellers receive not a flat rate of wages, but a percentage of sales. This is beneficial, first of all, for the owner of the kiosk, as he does not run the risk of being at a loss in low-income months. But sellers are not afraid of this system either. The cigarette business is profitable and it is not difficult to sell a large number of units per day.
When selecting candidates for the position of salesperson, you do not need to pay attention to their education. All that will be required of them is the ability to communicate with customers, handle the cash register and know the type of goods.
We recommend that you immediately place a strict ban on the sale of cigarettes to sellers under the age of 18. There are unscrupulous sellers who strive to sell more goods (and, accordingly, get a higher salary) turn a blind eye to the young age of buyers and sell cigarettes. If the government agency decides to arrange an inspection, and the kiosk gets hot, you will pay a fine.