Cigarette Manufacturers Raise Prices

New Round of Cigarette Price Hikes

Cigarette manufacturers industry-wide are raising prices once again . Lorillard Tobacco Company led the charge in price increases, followed shortly, by Phillip Morris, Natural American Spirit, and R.J. Reynolds. Visit the website of the Winston Salem Journal for more information.

Changes in price are effective immediately. Be sure to consult your invoice for updated pricing, and adjust your pricing accordingly.

Today’s installment of “Norton’s Notes, A Merchandiser’s Perspective,” sets its sights on point of purchase sales and owner/manager involvement in the store setup. Our merchandising and marketing department are happy to answer any and all of your questions. For feedback or to have your question answered, email the Allen Brothers Inbox today at mailto:jwinning@abdelivers.com.

Question 1) How many items should a store owner carry at the counter-top?

Answer 1) The maximum that your space allows. There’s always apprehension about overloading a counter, and it’s a legitimate concern. But your customers can’t buy what they can’t see. The type of products at checkout have to be hot impulse items, this is no place for a slow-seller. Novelty candy, gum, mints, toys, this should be the focus. If an item has been on the counter for more than two weeks with minimal turnover, it’s time to shuffle product. But it’s never recommended to stack different types of products on top of one another. Give each item the opportunity to stand out to maximize your point of purchase sales, as shown below.

Question 2) Do you find that most store owners want to be involved in the process of merchandising and setting their store, or prefer to leave it up to you? And which scenario do you recommend?

Answer 2) Some owners are more hands on than others. They sometimes have specific plans for their store. Others will give me the freedom to setup their store as I see fit. Setting an appointment to plan the procedure is always a good idea so you’re not going in blind. Both scenarios have their ups and downs. But the more engaged a store owner is in the setup of a store, the more committed they likely will be to maintaining the allure of the store’s appearance.

Candy Price Increase Follow-Up: Now What? (Part-2)

By now, there should be an overall awareness that prices are on the rise. We can blame it on inflation, gas prices, economic woes, or any other of the numerous options at our disposal. Unfortunately, it's a way of life in this business. But let's not sulk about it. Instead we’ll discover solutions together.

If somehow you haven't taken notice of the hikes or adjusted your pricing, I encourage you to do so... today! Raising prices is never a desirable option; it’s the dirty secret that people in business simply don’t speak of. But the key is to take an aggressive approach and be ahead of the curve. When I say aggressive, I don’t mean go overboard and radically impose major price increases. Instead, be as organized as possible with special consideration taken to easing your customers into the changes.

With inflation on the rise and the price of gas and raw materials fluctuating daily, prices aren’t about to go back down anytime soon. It’s time now to begin the aggressive approach by incorporating frequent price increases at smaller percentages. You’ll find the transition will go more smoothly if, rather than increasing pricing by 20% to your customers in a single day, you take a strategic approach with 5% increases weekly over the course of a month to get to that final number. When all the other store owners increased by 20% overnight, you’ll still be 15% less expensive (even if just for a week) then all the other game in town. Sure, you will catch up to the total price in a relatively short period of time, but the transition for your customer will be less dramatic. Customers are more willing to accept smaller-sized, incremental price increases than they are to swallow the entire jump all at once.

We’ll revisit this topic again in an upcoming blog. Happy selling!