Your best customers aren’t just buying cigars — they’re looking to meet other enthusiasts and join a community. That camaraderie is what separates a thriving cigar lounge from one that’s barely surviving.
But building that sense of community is easier said than done.
If you want to turn your casual visitors into devoted regulars and boost smoke shop revenue, you need to create an exclusive experience that makes customers feel valued and connected to each other and your lounge. And to create that experience, you have to learn how to start a cigar club.
In this guide, you'll discover why starting a cigar club makes smart business sense, what perks and benefits will keep members engaged, and how the right tools make managing your new club as smooth as your cigars.
Before we give our step-by-step for how to start a cigar club, let’s answer a key question: Why bother? What are the advantages of starting a cigar club for your lounge?
Related Read: How To Manage a Tobacco Loyalty Program for Your Store
Let’s compare a typical walk-in customer to a club member. Members show up consistently, spend more per visit, and help grow your business through referrals and word of mouth. When you start a cigar club for your lounge, you’ll see a few key benefits:
A cigar club offers customers tangible perks and intangible benefits, like community and social status. And that same club offers your cigar lounge more consistent revenue, better customer loyalty, and higher average per-customer sales.
Now, let’s explore the best ways to start a cigar club that delivers these benefits (and more).
Before you can launch your cigar club, you have to decide on its structure. There are several options, and the right model for your lounge depends on your business’ size, customer base, and the tools you have to manage memberships.
First, you need to choose either a single-tier or multi-tier membership.
Single-tier is an all-inclusive approach that keeps things simple, giving everyone access to the same benefits at the same price point.
Multi-tier includes options, like Silver, Gold, and Platinum levels, that let you cater to different budgets and offer different perks as members invest more.
Multi-tier is harder to manage, but if you have the right tools in place, it’s a great option to boost revenue. Next, you need to decide whether you’ll charge your membership fees monthly or annually. Monthly payments lower the barrier to entry with cheaper upfront fees, but annual memberships create stronger commitment and loyalty from the jump.
The key is to match your club structure to your clientele. A smaller lounge might thrive with a single, straightforward membership level, while a larger operation could support multiple tiers.
Related Read: What's the Average Cigar Lounge Profit Margin? 5 Insights
Your perks and benefits are central to your club’s success or failure. The best structure has a mix of tangible savings and experiential perks that give members reasons to join and stay active in the club. Consider the following:
The key to creating attractive club perks is to offer a combination of financial savings and experiences they can’t get elsewhere.
Next, you need to lay down the law. Clear rules make your club more manageable and create a better experience for all your members.
Start with the basics. Define membership term commitments and your cancellation policy so there's no confusion if someone needs to leave.
Next, establish guest policies. How many guests can members bring, and how often? You don’t want to end up hosting a single member’s entire group of golf buddies every Sunday afternoon, crowding out the rest of your paying members.
You also need to set lounge etiquette standards. Club members are looking for something exclusive and a chance to relax with their favorite cigar, so setting up standards for dress and behavior helps you attract the right members and hang onto them over time.
Communication is just as important as the rules themselves. Let members know how they'll receive updates so they never miss important announcements about cigar lounge events or policy changes. Members want to feel heard, so you set up systems to receive feedback, too.
Remember to keep everything member-focused and straightforward. Consider creating a member handbook or welcome packet that covers the essentials in a friendly, easy-to-understand format. When your rules support the experience rather than complicate it, everyone wins.
Related Read: Marketing for Smoke Shops: Essential Tools & Strategies
Running a cigar club using spreadsheets and handwritten notes is a recipe for disaster. As your membership grows, manual tracking is not sustainable. You’ll miss opportunities and cause frustration for your most loyal members. Instead, you need the right point of sale (POS) tool with built-in club management features.
A system like Cigars POS offers club management features that handle details like:
Related Read: Smoke Shop POS Systems: 6 Must-Have Features + Best Options
Beyond these features, the right POS makes daily operations easier for everyone. Members check in smoothly, discounts apply automatically at checkout, and you eliminate the manual work and human error that come with tracking everything by hand. Overall, the right POS system takes the headache out of club management and helps you capitalize on the opportunities your cigar club creates.
Once you’ve built a cigar club worth joining, all that’s left is to get the word out and fill your membership slots.
Start with a soft launch. Target your best existing customers and invite them to be founding members of your club. Run this as an exclusive test period and ask for their feedback so you can refine your offerings and perks before the official launch.
When you're ready to go public, get ready to make a splash. Create cigar marketing materials, such as in-store signage and table tents, that outline the club and its benefits. Then, move your efforts into the digital world.
Send email announcements to your existing customer base explaining what the club offers and why they should join, and run social media campaigns that showcase the perks and give people a behind-the-scenes look at member experiences.
You might consider offering referral incentives or limited-time discounts to reward early adopters, so members have a reason to bring their friends. All these efforts can help build your initial member base quickly.
Cap off your launch with an exclusive grand opening event. Make sure to go all out on this launch event — it’s your first opportunity to show potential members what they’ll enjoy if they take the leap and sign up.
Learning how to start a cigar club comes down to these five simple steps: defining your structure, deciding on perks, setting expectations, implementing the right systems, and promoting effectively. If you get these right, you can get your new cigar club off the ground in no time.
But launching your cigar club is only the beginning. To run a successful club over time, you need the systems and processes to consistently deliver on promises and continually improve the experience based on feedback. This kind of continuous improvement is easier said than done, so you need the right system in place.
Ready to modernize your lounge and create an exceptional member experience? Download our free guide to cigar lounge POS systems to discover how the right technology helps you manage members and grow your business.