The Complete Guide to Cigar Lounge POS Systems

A Deep Dive Into Must-Have Cigar Lounge POS Features

While it probably comes as no surprise that not every POS system is equipped to run a cigar lounge, that leaves the more important question: “What features should a cigar lounge POS system have?”

If you plan to run a top-tier cigar lounge, not just any old system will do. Here are the essential features you need to get the most out of your cigar lounge management system.

CGR Screenshot - Inventory

Flexible Inventory Management

An inventory management system will update your stock levels automatically whenever you make a sale or receive an invoice, giving you an accurate view of your inventory.

Cigars can be trickier to keep track of because of how they’re received or who manufactures them. Here are some essential inventory features to look for in a cigar lounge POS system:

Carton-pack tracking: Track whole boxes of cigars or sell individually while maintaining accurate stock and pricing information.
Custom tags: Add unique tags to products such as tasting notes, style of cigar, or region for quick product lookup or custom reporting.
Custom SKUs and item editing: Input unique products in your system for custom product bundles or to consolidate identical cigars from different manufacturers.
Barcode labeling: Print thin labels for individual cigars that can be easily scanned at checkout or on a mobile POS device.
Automated recording: Set low stock alerts based on average sales volume and supplier lead times, and automatically generate purchase orders to optimize stock levels.
Built-in vendor management: Track all of your supplier information in one place for quick reordering and to monitor supplier performance and profitability.
Multi-location management: Monitor inventory levels across multiple locations to keep all stores stocked and spot trends between different customers.

Having a system with the flexibility to track boutique cigars ensures you can offer an unforgettable selection without adding complexity.

Simplified Compliance and Age Verification

Cigar lounges have stricter legal requirements than general retailers, especially if they also sell alcohol. However, manually checking IDs and tracking sales can open your business to compliance risks, especially as things get busy.

The easier it is to stay compliant, the less likely you are to face costly fines or license suspensions. Here are some ways that a cigar lounge POS system can help:

ID scanning support: Use barcode scanners to quickly validate customer IDs without slowing down the line.
Digital record keeping: Ensure your data collection meets state standards, either by deleting data immediately or storing it for 30 days. A POS system can also generate reports for state or local regulatory audits.
Employee access control: Implement role-based access controls so that only authorized employees can perform regulated functions or override compliance checks.
Custom tax setup: Create custom tax configurations and exemptions to ensure correct tax rates are applied to all tobacco products.
Minimum price enforcement: Ensure all tobacco and/or alcohol products are sold above legally-mandated minimum prices.

A tobacco-specific POS system also makes it easier to stay ahead of regulatory updates with consistent software updates.

Smoother Sales and Transactions

Having flexible, convenient payment options makes checking out less of a hassle, encouraging customers to spend more time in your lounge. Here are some key payment features to look out for:

Multiple payment options: Give users multiple ways to pay, including tap-to-pay cards, contactless payments, debit cards, and credit cards.
Suspended payments: Let customers open a tab, minimizing the number of disruptions and encouraging customers to spend more time enjoying your cigars.
Mobile POS support: Process payments from anywhere by bringing a mobile POS system directly to wherever customers are sitting.
Dual pricing: Offer discounts for customers who pay in cash while avoiding the legal hurdles of surcharging.

All tobacco stores require a high-risk merchant account, so make sure any provider you consider supports high-risk payment processing.

Better Customer Experiences and Retention

Attracting new customers to your cigar lounge is important, but providing exceptional customer experiences that bring people back is even more so.

Here are a few features that can help you elevate your cigar lounge experience:

Customer loyalty: Create a customer loyalty program that allows visitors to earn points the more they spend, or create tiered membership levels*.
Customer profiles: Look up a customer’s purchase history to quickly understand their preferences for tailored recommendations.
Personalized promotions: Use custom product tags to send out unique promotions via SMS and email (e.g., “customers who spent $X on Cuban cigars last month”).
Gift cards: Partner with a third-party service to sell branded gift cards for special events and holidays.

*Note: Some POS systems don’t natively support membership tiers. However, you can sell a custom membership level product and tie it to a loyalty account to implement this functionality without needing an additional service.

Reporting and Analytics

Having an unbiased and accurate view of sales and store performance is essential to refining your selection, understanding customer preferences, optimizing inventory levels, and more. Built-in reporting and analytics tools combine your sales, inventory, and supplier data to generate actionable insights for your business.

With intuitive reports and visual dashboards, you can back up your intuition with data. Here are some of the key ways you can leverage reports on your cigar lounge system:

Bestsellers: Identify best-selling products and product categories to refine your selection. Use your custom tags to get even more granular insights on customer preferences.
Average transaction volume: See how much customers typically spend per visit and whether certain items are bought together for better forecasting and to identify upselling opportunities.
Profit margins: See your profit margins per item, per product category, or supplier to make strategic price changes or to negotiate with suppliers.
Inventory turnover: Understand how often you sell and reorder certain items in a given period, helping you optimize stock levels and profit margins.
Tobacco scan data: Take advantage of manufacturer discounts by participating in tobacco scan data incentive programs.
Tax and compliance reporting: Leverage export options for simplified tax and compliance reporting.

These are just a few of the reports you can pull using a tobacco-specific POS system.

Best Practices for a Smoother System Upgrade

Many cigar lounge owners hesitate to update their software or hardware because they worry it will be too complex or disruptive. We can tell you that with the right technology partner, that simply isn’t the case. Still, with the right implementation plan, you’ll be up and running in no time.

If you have an existing system, the first step will be moving your inventory list onto the new one. First, see how your inventory was stored in your old system (as a spreadsheet, CSV file, etc.), and see what the process is for importing that data into your new system.

Some systems, such as Cigars POS, offer full-service onboarding that includes importing your old inventory. A full-service option is always ideal as it will reduce time spent on manual data entry, reduce errors, and get your stock list up to date faster.

Most tobacco POS systems include a centralized database of common products so you can update your new system with standardized SKUs. This will make it easy to add your typical items.

Even if you have an older system, most cigar lounges sell boutique cigars that won’t be part of the POS’ common product database. These items will need to be configured manually and can usually be added right from your POS terminal.

In addition to the pricing, product name, and other basic information, you can also add things like:

Custom tags and attributes (e.g., country of origin, strength, wrapper type, brand, etc.)
Longer descriptions and notes (e.g., tasting notes, production details, boutique story elements)
Category or department
Pictures

This information will make these products more searchable in the future.

Taking some extra time to train your staff on a new software system can go a long way towards reducing downtime and maintaining high customer satisfaction.

Ensure staff know the basic functions of the POS system that they’ll need to use, including:

Clocking in and out
Searching for items (by name, notes, custom tags, etc.)
Updating stock and checking stock levels
How to place special orders
Checking ID
Ringing up customers

With detailed inventory notes, you can help staff members get acquainted with your stock just by browsing your stock list. You’ll also want to set employee access controls and let employees know which functions they’ll need managerial assistance for.

Technology is constantly being updated with better features or to meet new legal standards — the unfortunate truth is that this can break things. Not all POS providers handle customer support the same way, so knowing what resources are available when things go wrong is important.

Look for POS providers with positive customer reviews and 24/7 tech support to ensure you’re covered in case anything goes wrong.

However, tech support isn’t just about fixing problems. It’s also about getting your system working how you want. Ask any potential technology providers if they’re willing to advise you on how to set up new features or upgrade your system as your business grows.

Crucial Questions and Considerations

Choosing a POS system solely on features is like choosing a car solely on looks. Just like a car, you’ll want to take your POS system for a test drive, kick the tires, and look into the maker’s reputation and service history.

Remember, you’ll be using your POS system every single day, so there’s no point rushing into a decision just to be disappointed down the line.

Instead, consider these key factors when evaluating cigar lounge POS providers.

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See if Cigars POS Is the Right Fit for Your Cigar Lounge

Now that you have a better understanding of how to evaluate a cigar lounge POS system, we’d be honored for you to put us to the test.

Cigars POS is dedicated to providing tobacco stores, vape shops, and cigar lounges with the specialized tools they need to drive sales, stay compliant, and create the perfect atmosphere. Still early on in your journey of opening a cigar lounge? We’d love to help. Explore the resources below or book a customized demo with one of our experts today.

The Complete Guide to Cigar Lounge POS Systems: 12 Must-Have Features

Running a successful cigar lounge isn’t just about having cigars and a space to enjoy them; it’s about creating a welcoming atmosphere that elevates your space to a community hub.

Chapters

Understanding Your Cigar Lounge POS Needs

Generic vs. Tobacco-Specific POS: What’s the Difference?

Generic retail POS

Pros

Cons

Tobacco-specific POS

Pros

Cons

A Deep Dive Into Must-Have Cigar Lounge POS Features

Flexible Inventory Management

Simplified Compliance and Age Verification

Smoother Sales and Transactions

Better Customer Experiences and Retention

Reporting and Analytics

Tell us a little more about your cigar lounge.

Equipping Your Store With the Right Hardware

Essential Cigar Lounge Hardware

POS terminal

Payment terminal

2D barcode scanner

Label printer

Cash drawer

Receipt printer

Ensuring Your POS Implementation Is a Success

Best Practices for a Smoother System Upgrade

Fire Up Your Marketing Using a Modern POS

How To Make Your Promotions and Events Sizzle

Data-Driven Marketing

Personalized Campaigns

Loyalty Promotions

Event Management

Digital Ads

Balancing Short-Term and Long-Term Goals

Future-Proof Your Investment

E-Commerce Integration

Multi-Store Management

Unified Payments

Choosing Your Cigar Lounge POS Partner

Crucial Questions and Considerations

Fully understand pricing models and hidden costs

Know which vendors truly support tobacco businesses

Understand implementation timelines

Schedule a demo (or several)

Key Questions To Ask a Cigar Lounge POS Provider

See if Cigars POS Is the Right Fit for Your Cigar Lounge

Talk with an expert

Explore our features

Perfect your marketing

The Complete Guide to Cigar Lounge POS Systems:
12 Must-Have Features