Local tobacco and cigar wholesale supplier

Smoke and cigar shops, convenience stores, gas stations, liquor stores and some bars or lounges in your region.

You buy in bulk and sell to retailers at a markup, usually on invoice with payment terms. Margins per sale are modest, so profit depends on steady repeat orders and a well-planned delivery route.

• Sales and relationship building with store owners
• Inventory and bookkeeping
• Careful with paperwork and compliance
• Delivery route planning

• State and local tobacco wholesaler or distributor licenses, which vary widely, check with your state revenue agency and your city or county
• State excise taxes, stamps and reporting rules, and any surety bond requirement
• Federal rules, including FDA regulation of tobacco and vapor products and any federal permits that might apply, check before stocking anything
• Selling only to licensed retailers and keeping proper resale certificates and records
• Rules on shipping tobacco across state lines or to customers outside your state
• Large upfront cash tied up in stock, plus theft and storage risks, so check general liability, property and commercial auto insurance
• Thin margins and competition from large established distributors

Startup costs are typically around $15,000 to $75,000, depending on how much stock you buy, your storage space and your delivery setup. Stock ties up a lot of cash, so the amount you carry matters.

Monthly revenue is typically around $10,000 to $50,000, depending on how many retailers you supply and what you stock. This is revenue, not profit, and margins can be thin against large established distributors.

Check state and local wholesaler or distributor licenses with your state revenue agency and city or county. Also check state excise taxes, stamps, reporting and any surety bond, federal rules including FDA, selling only to licensed retailers, and interstate shipping rules.