|
[COVER STORY]
Pipe Customers Aboard
Variety and education keep pipe enthusiasts coming back
for more
By Tracey Cox
Pipe smoking is well suited to customers who appreciate variety. Manufacturers have responded with a variety of pipe tobaccos on the market. As the oldest cigar manufacturer in the United States, Finck Cigar Co., San Antonio, sells pipe tobacco made in Denmark from Villiger/Stokkebye International. The company also buys tobacco from Altadis USA and Lane Ltd./Conwood and sells pipe (and cigar) accessories. Finck's mail-order business includes cigars, pipes, pipe tobacco and accessories.
Billy Finck, Jr., vice president of Finck Cigar Co., says there is truly something for everyone in the pipe tobacco category. "The upper-end tobaccos are packaged in fancy tins with fancy names and command a high price," he says. "Most of them have really great quality–good burn, good taste."
Bulk tobacco is the focus at Finck Cigar Co., and the company understands the preferences of this customer. "We prefer tobacco in bulk, and our tobacco is all packaged in 14-oz. or larger vapor-barrier bags," Finck says. "This is great, quality tobacco made for the guy who smokes more than a couple of bowl-fulls a week and just wants quality, not fancy packaging. We sell thousands of pounds of tobacco packaged like this, so there is obviously a demand for it."
Additionally, Finck Cigar Co. provides a line of 8-oz. tobacco bags geared to retail outlets who want good quality and low prices, Finck adds. "Even in the stores that don't sell much pipe tobacco, it's important that they have some good, quality tobacco for the guy who is looking for it, or he will find it somewhere else. And then he is most likely to buy his cigars, accessories there," he says.
The lesson is: neglect the pipe-smoking customer at your own peril, warns Finck. "A retailer should never dismiss these customers as too small of a market–our business has proven that there is a good demand for pipe tobacco and these customers buy lots of other products, too," he says.
Aromatic tobacco
Aromatic tobacco blends gain their flavor and sweetness because of the various casing sauces and dressings (molasses, brown sugar, vanilla, chocolate) that are used. Natural blends receive their flavor and smoothness through the skillful blending of natural tobaccos. From Cherry Cordial and French Vanilla to Champagne and Whiskey blends, customers are turning to flavor, says Patricia Boles, owner of the Cigar Club in Madison, Tenn. "A lot of people are looking for the aromatic smell because it is less annoying to the people around them," she says. "Customers are looking to find something to smoke in their homes."
Boles says her aromatic bulk tobacco is priced at between $2 and $3 an ounce, which allows for the all-important consumer sampling. "I think it's really important that customers can buy a couple of ounces of a couple of different kinds of tobacco," she says. "People buy their tobacco differently. Some customers purchase a half pound a week, and others will buy 2 ounces in two weeks. You need to understand the buying habits of customers and their preferences. At our store, aromatic is a focus."
Kyle Haass, owner of Pipe World in Austin, Texas, says that his aromatic bulk tobacco sells well, but in the more mellow forms. "The milder aromatic with a hint of flavoring are what's popular," he says. "A milder Vanilla is what my customers buy versus a Cherry, which some people say is just too strong."
 Pipe favorites
Pipe smokers love the ritual of smoking a pipe, and they see their pipe as a signature accessory. The popularity of briar pipes prevails, even today.
In the past 10 years, ABBEY of Neat Things Importing, Inc., Bellingham, Wash., has focused on the sale of Italian briar pipes. Neat Things Importing manufactures ABBEY cigar and pipe products, including pipes, pipe tools, pipe pouches/cases (leather or leatherette), ashtrays, pipe stands and pipe stands with glass tobacco jar combinations. Jamie Dean, president of Neat Things Importing, Inc., says that it is important to do the research on what pipe smokers are looking for today. "I worked closely with the late Thomas Cristiano in developing a series of his assortments that satisfied the tobacconist's needs," he says. "We sell large-bowl bent pipes in either rubber or Lucite (Perspex) mouthpieces. We also sell straight pipes with either rubber or Lucite mouthpieces. The market is roughly 85 percent bent and 15 percent straights."
Dean adds that in the past eight months, ABBEY has been marketing some carved, large-bowl pipes from China. "In our factory the employees were trained by Italian carvers, and they have produced some amazing styles in African rosewood that have flown off the retailers’ shelves," he says.
ABBEY's rosewood pipes retail for $24.95 or less, Dean says; however, they appear to be products of much higher quality. "These pipes look like $100 pipes," he says. "And this has really opened up the entry price point of a nice pipe."
Dean adds that ABBEY's new rosewood pipes were tested before releasing them to the market. "We started slow after introducing these pipes to make sure they would be accepted and sell at retail," he says. "Now demand has kept us busy filling the market. African rosewood has smoked well, and customers say that they have been consistent bowl after bowl."
Boles says she has opened her doors to African rosewood pipes as well, and she has sold at least three dozen in the past several months. "We do have some African rosewood pipes and they are very pretty," she says. "The only problem with these pipes is that the wood can be porous and they may crack across the bottom of the bowl if the pipe gets too hot. It's like with fruit-wood pipes, there is a problem with the density of the wood."
Other types of pipes on the shelves today are Meerschaum, palm root and corn cob.
Pipes with intricate carvings or made by designer carvers can be sold as collectors’ items. Meerschaum definitely fits in this category with some amazing creations by artisans in pipe carving.
"I sell some Meerschaums and I believe people really like the look of these pipes," Boles says. "But I do think practical smokers will carry the wood pipe, which is a little more durable."
The Meerschaum pipes appeal to the younger generation, Haass says. "After 25 years in the business, I still see that the more traditional pipes sell better."
Finck Cigar Co. sells a variety of economically priced pipes ($12-$40) that come from several suppliers, mostly from Cristom Imports. "They make great, quality pipes in Italy and we buy them in huge volumes–hence the reasonable prices," Finck says. However, Finck emphasizes that, in his view, high-quality pipes are briar and Meerschaum pipes.
While there are as many pipes as pipe tobaccos, Finck says his company tends to continue to offer customers fairly basic pipes that are more affordable. "We don't see much difference in quality of briar between expensive and economical–it's sort of like the difference between a Chevrolet and a Cadillac," he says. "The guy buying pipes for a collection will demand super-fancy; the guy just looking for a good smoke wants quality and a value price."
Customer demographic
In the tobacco retail industry, what's old is new again, and college students are among the demographic embracing pipe smoking, retailers agree. "Because we are located in Austin, Texas, we do have many college kids that buy pipes," Haass says. "But the college kids might not come back once they graduate. They often look at pipe smoking as a fad."
"The new smoking demographic has to be the customers that are part of the college scene," Boles agrees. "We have college kids come in and buy pipes and they are customers for awhile."
In general, Boles says that retailers need to understand their demographic and know their styles and tastes when buying stock. "I don't cater to a lot of the pipe collectors, so our pipes run between the $45 to $85 range, and we even have some basket pipes that are little more inexpensive than that," Boles says. "Most of my pipe-smoking customers are buying to smoke–that is their sole purpose in purchasing pipes. You have the guys who smoke pipes and they have from 200 to 300 pipes in their collection. We aren't necessarily selling to that customer. We sell to the practical smokers who don't really care if their pipes are autographed."
Pipes are commonly recognized by smokers as a cigar or cigarette alternative, adds Boles. "Once you buy one pipe and then spend your $60 on pipe tobacco, it is relatively inexpensive compared to a cigar," she says. "You can buy a couple of ounces or a tin of tobacco for a low price and it can really last you awhile."
Educating customers
Boles emphasizes the importance of two areas of focus for the retailer: economics and education. The first-time pipe smoker may be intimidated by the very art of pipe smoking, she says. "It's a good idea to offer some kind of beginner's package," she says. "And we do have some kits with a pouch and pipe. And, again, it's important to have a staff that is passionate but not pushy about their interest in pipes." 
Boles has been in the pipe business for 10 years. The Cigar Club's staff members are selling a product they need to understand, she says. "We hire sales staff that are friendly, approachable and share a love for pipes," she says. "Pipes and pipe tobacco are categories that are all about personal preference. So staff members really need to know how to put pipes in people's hands and help them understand the product. They can't make customers feel stupid about learning about pipes. And, if your staff members love pipes and pipe smoking, they will have the patience to teach it."
Good pipe business is all in staff training, says Haass. Teach your customers and they will continue to come, is Haass' mantra. "Ninety-eight percent of the people we hire are people who do not know a lot about pipes," he says. "In fact, I would say our staff members are usually cigarette smokers. But we teach them everything they need to know from the minute they start with us. Our staff understands that people have different preferences in tobacco–that is the No. 1 rule in our business. That's why it is so important to have a variety on hand. We have 30 different blends of tobacco for this reason alone. And our staff knows how to help customers sit in leather chairs, relax and sample."
In the future, Dean says any investment in the pipe category for customers will serve a healthy return for retailers. "Pipe smoking has definitely been a trend in the industry," he says. "There has been a slow, steady growth to the pipe-smoking business over the last few years. Looking ahead, I see a continued slow, steady growth."
|
