The popularity of disposable vapes has made them the most trusted alternative to cigarettes. Alongside being cheaper, these vapes are also trusted as they pose fewer health risks. A survey by Reuters recorded that close to 10.8 million people are vapers in the United States.
Therefore, the vape market size in the United States was valued at USD 5.7 billion in the year 2021. Thus, stepping one’s foot into the vape industry is a good way to earn some profits.
However, before embarking on this adventure, it is important to be aware of the key aspects that can either make or break your sales.
7 Things to Consider for Starting a Vape Shop
There is no doubt to the fact that disposable vapes are the new rage among youngsters. Popular disposable brands such as Esco Bar, Elf Bar, Flum Float, and more have steadied their foot in the market by offering buyers items that meet their needs and requirements.
To become one of their successful competitors in the vape industry, it is important to understand the following steps:
1. Prepare a Business Plan
Any business venture needs a proper and well-constructed business plan. The same is true for anyone wishing to start a vape shop. One should not be in a hurry to start a business.
It is important to take time, sit with other successful business venturers, and have a strong idea about the market. The business plan should focus on the goals and aspirations that the company plans to achieve in a given span of time.
The first step in designing a business plan is choosing a name and choosing a business structure. Another crucial step is to research the business strategies and models of the competitors. This will help get an idea about what the customers like and their demands.
2. Learn About the Relevant Regulations
With a business in the vape industry, it becomes very important to learn and familiarize oneself with the local regulations. The difference between a traditional retail business and a vape shop is that to start the latter; one needs to have all the necessary licenses and legal requirements.
To ensure success and profitable sales, the business should remain within the boundaries set by FDA’s regulations on selling e-cigarettes.
One of these regulations prohibits advertising e-cigarettes without a health warning statement. It is also important to ensure that the product is sold only to customers who are of age as regulated by the state.
Every country or state has its own set of rules and regulations for selling vapes. Following these is very crucial for the sales of the product.
Remaining non compliant with these rules can bring legal threats to the business venture.
3. Assess Startup Costs
For the business to attain success, you will need to have a good idea of the startup costs. Every business needs certain things that are crucial for its growth.
These include securing a location, launching a marketing campaign, hiring and training the staff, finalizing a supplier, and more. It is important to account for your startup costs throughout the process of these steps.
As a business owner, you should not underestimate the cost of stocking the inventory.
In the initial stage, the important components that should be present in the inventory are hardware, replacement coils, e-liquids, vape batteries, battery chargers, and vape juice. It is advisable to purchase the inventory from a wholesale supplier.
4. Get Business Insurance
The smoking industry usually has a high capital when dealing with products and equipment. Data have revealed that vape shops pay a lot more than regular retail shops. Therefore, there is a high chance that you will face high insurance rates for your business.
Additionally, because these products have a risk of causing health-related problems, issues relating to lawsuits can arise in the course of the business.
Therefore, it is important to purchase insurance policies from trusted brokers who provide policies that cover vape shop property and products. Policies are available for different things, including e-juices, health problems, defective products, and more.
5. Build Business Credit
It is important to have separate business and personal finances. The best way to do this is by creating a business bank account.
There is a high chance that in order to grow your business, you will have to borrow some money. In such a situation, it is important to have business credit. These credits also play an important role in building your business credit score.
There are several important steps to setting up a credit history. These include a D-U-N-S number, legal business classification, Employer Identification Number (EIN), and business bank account. The availability of all of these will make it easier to open a company credit card.
6. Build an Online Community
In today’s global world, building a strong social media presence is very vital for the growth and development of a business. Strategic marketing helps in increasing the traffic on your website. Branding is an important component of the success of any business.
It is the process by which the brand translates its services, goals, and motives to the customers. It is only via successful branding that customers recognize the brand. And social media is the most trusted medium for achieving this.
In the case of a vape store, establishing a social media presence is much more difficult. This is because, unlike other retail stores, search engines such as Google and Bing restrict posting ads for smoking related-products.
7. Focus on Customer Service and Satisfaction
The progress of any business venture is highly dependent on whether the customer is satisfied or not. Satisfactory customer service is possible only when you have the most professional and talented worked under your wing.
A satisfied customer is one who receives the product based on their tastes and interests. Therefore, successful customer service can be achieved in two steps. The first is to customize and provide a product that meets the needs of the customers.
The second is to deliver premium quality products. It is also important to have professional conversations with the customer where all their questions pertaining to the product, cost, etc., are answered.
Considering all the above-mentioned points will give you an idea about which steps to consider and which ones to avoid in order to venture into the vape industry. What seems like a long and complicated process is actually pretty simple if understood properly.
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