When It Comes to Success, He's Smoking

 

 

              Only seven months in business and profits are gathering like ashes at a cigar tasting party.

              David Sabot, at the young age of 24 already had an Internet site development business

              when he decided to add a second business. His thought process, strategy and execution in

              forming this business is a good example to follow.

 

              What started the process was when he thought, "Why only set up sites for others when

              you can start one for yourself." With his experience and equipment, this allowed him to

              capitalize on his assets. But he needed a product. David likes cigars and the market is

              booming, but cigar accessories, especially humidors, are expensive. Cigar humidors became

              his target and he formed Dave's Humidors.

 

              So Dave developed an Internet site, utilizing his expertise and equipment to sell a product

              that he enjoys as a consumer. Now he turned to positioning. He knows cigars are a fad with

              a life expectancy, "it's trendy but after the trend is over, the people who survive are those

              on the exclusive, high end and those who offer the best deal." He chose the latter so he

              needed the product at a good price. By backtracking through humidor distributors directly

              to the source, he found a suitable manufacturer and cut a deal that enabled him to price his

              first humidor for $59.95, less than a third of what others offer. It carries the name of his new

              company but has the same quality as far more expensive competitors because he utilizes the

              same source of supply.

 

              His plan paid off in a big way because he was able to start the business for less than $100.

              Creating an Internet site was a freebie with his skills and since it is the Internet, his

              inventory level is merely enough to fill orders. Initially, maintaining an inventory of one or

              two humidors was plenty. So he was on his way, running on pocket change, turning a profit

              quickly.

 

              When asked to name his biggest hurdle, he said it was building a good enough reputation

              to make sales on the Internet. Anyone can get on the Internet to sell products, so a

              reputation is important to make you viable. He got a toll free number, provided good

              information on his web page, and responded immediately to E-Mail and phone calls. With

              prices as little as one third of the rest of the market and his personal attention to customers,

              he provided product and service that rivals the best for a far lower price.

 

              His philosophy is to "treat each customer like they are the last one". At first it was hard to

              get people to commit money on the Internet. Now it is commonplace for Dave's Humi dors.

              He at tributes most of his growth to word-of-mouth. Sales now reach $8,000 a week and he is

              furthering customer attention by developing a customer order tracking system the

              customers can access to monitor their order.

 

              A second hurdle he found was getting potential customers to visit his web site. One way

              that worked for him was the use of contests. People who visit his site could win a free

              humidor. Ultimately he determined that 6-7% of the respondents to his contest become

              paying customers.

 

              So what's next? Dave is expanding his product line, even developing his own accessories

              such as humidor dividers and activator solutions. He is connecting with manufacturers of

              related products to expand on his successful humidors and linking with other people in the

              market to obtain more coverage and visibility. An entirely new product line is also a

              possibility.

 

              Dave Humidor's is a good example of taking your assets, utilizing them at almost no cost

              and building a successful business.

 

              For more information on his business or just to buy his products David Sabot can be

              reached at Dave's Humidor, 25 Nassau Ave., Glen Cove, NY 11542. His toll free number is

              (888) 674-8307, Fax him at (516) 674-8307 and of course his web site at

              www.cheaphumidors.com. HBM