Cigar shop for sale

[Txbob]

http://dellingco.localplacement.net/...8616&IsFixed=Y



Listing Number Type of Business Location
1999 Premium Cigar Store Northeast Harris County
Executive Summary
The store's primary business is the importing and reselling of premium cigars, pipes, pipe tobacco, humidors, lighters and related items typically found in a premium cigar store. The business is currently being run virtually absentee. The present owner spends about 10 hours per week at the store. The company has one location consisting of approximately 1900 square feet and containing a walk-in humidor of approximately 204 square feet. A growing segment of the business is from online sales. The internet sales have steadily increased each year. Online sales comprise approximately 12% of annual sales. There is also a wholesale part of the business which accounts for another 5% of sales. There is very little competition in the area. The store itself is decorated beautifully in a masculine theme with rich woods and stuffed leather couches. There is an active customer list consisting of approximately 1500 customers who receive regular emails promoting sales, promotions, etc. There also exists a remote security camera system enabling an owner to observe the business from elsewhere. A really beautiful store doing well but should do much better with an owner/operator. A must see to appreciate.
Asking Price Down Payment Sales Volume Discretionary Income
$185,000.00 $185,000.00 $456,767.00 $99,954.00

[tx_tuff]

Very interesting, I wonder which cigar shop this is. Not really my side of town.

[leafandale]

For anyone in commercial real estate: what is discretionary income? It is listed at $99k. If that is supposed to be the number the owner takes out for himself, it's BS. There is no way a guy takes out 99K on only 450K of sales. It's just not possible (assuming the rest of the bills, taxes and payroll is met).

[sboyajian]

Originally Posted by leafandale

For anyone in commercial real estate: what is discretionary income? It is listed at $99k. If that is supposed to be the number the owner takes out for himself, it's BS. There is no way a guy takes out 99K on only 450K of sales. It's just not possible (assuming the rest of the bills, taxes and payroll is met).

In the views of a retail store, discretionary income is the amount left over after all expenses (property loans/lease, payroll, stock, utilities, etc) are paid.

So for instance if you brought in $20,000 a month in sales, but your mortgage was $5,000, your payroll was $5,000, your stock was $3,000 and your utilities were $2,000.. assuming you had no other expenses, your discretionary income (the amount remaining to put into your business account (your profit)m would be $5,000).

You could either put it into the bank (back into the company).. or give yourself a raise.. how much you wish to take as income is all dependant on the person running it. One person may not need to take more than $50,000, while someone else may wish to take $150,000... at this time, with the current owners current expenses, his discretionary income (left over) is $99,000.

[BigBuddha76]

Originally Posted by leafandale

For anyone in commercial real estate: what is discretionary income? It is listed at $99k. If that is supposed to be the number the owner takes out for himself, it's BS. There is no way a guy takes out 99K on only 450K of sales. It's just not possible (assuming the rest of the bills, taxes and payroll is met).

it could be right if he only sells one box of cigars a week and the rest is the big margin stuff like bongs, hookahs, cheapie lighters from taiwan, black and milds, never pays his employees, never turns the lights on, has incredibly gullible customers ($60 for an opus X? sure I'll take a box of them)...that number is BS and any of us who have worked the industry know it.

[Txbob]

I have no idea if the numbers are good or even real I just came across it while looking for something else and thought someone might be interested.

[CBCyclone]

That represents a 22% return against his gross income. That's a very inflated percentage for most all businesses.

[boomerd35]

Originally Posted by BigBuddha76

it could be right if he only sells one box of cigars a week and the rest is the big margin stuff like bongs, hookahs, cheapie lighters from taiwan, black and milds, never pays his employees, never turns the lights on, has incredibly gullible customers ($60 for an opus X? sure I'll take a box of them)...that number is BS and any of us who have worked the industry know it.

I know which store this is and they do sell hookahs, lamp bergers, etc. But it's a regular old B&M and I suspect their sales profile matches any other B&M that sells these accessories. I highly doubt that discretionary income means what the owner is taking out.