Retailers must overcome many obstacles to achieve financial success, one of the most common being those certain SKUs on the shelves that just don’t move. We’ve all seen the telltale signs upon walking into a cigar store—yellow cellophane or old packaging that has long since been changed by the manufacturer; even just bottom-shelf placement could be ample evidence that a certain cigar is simply not selling as it should. Every retail business faces this problem from time to time, so in this edition of Retailer Corner, let’s focus here on finding solutions.

1.     Clearance area with offers of 30 to 50% off is a must for every retail store! If a box of cigars has been sitting on your shelf for over a year, it’s definitely time to move it to clearance section to get it sold quickly. Some retailers dislike doing this, as they are giving up margin by discounting the product. However, you’re better off getting back your money than having it sit on the shelf with no hope of a return on your investment. Think of it like the stock market;, sometimes you have to cut your losses and sell the stock. This way, you’ll take back your investment, allowing you to put it into a new or different product that will more likely result in a better turn rate.

2.     Don’t make the same mistake by reordering product with a terrible turn rate. I’ve had numerous customers complain about certain brands that take a long time to move—and when they finally sell out, they reorder the same box that took them a year to sell. Instead of repeating a mistake, take the opportunity to learn from it instead.

Thanks for taking the time to read our latest Retailer Corner. Santa Clara has been in business for 41 years because, for those 41 years, we’ve been committed to helping our partners achieve their goals, and we truly hope that our advice offers some valuable insight that helps you to become an even better retailer.

NOTE: The information in this article is not intended to offer any regulatory compliance guidance or legal advice; always check with legal counsel before undertaking any new activities. All tobacco products, including cigars, are regulated by the U.S. Food and Drug Administration, and certain retailer activities may have implications under the Tobacco Control Act. For additional information regarding the FDA’s regulation of tobacco products, or the obligations it places on tobacco retailers, visit www.fda.gov.