Vaping has emerged as one of the most popular trends among the youth not only in America but also the world at large. The popularity of the trend culminated in the Oxford Dictionary declaring the word ‘vape’ the world of the year. This is an indication that vaping isn’t just a fad but a culture that has already entrenched itself deeply in contemporary society. Economists have projected that the industry will be worth $61.4 billion by 2025. With such lucrative prospects, you should make it a priority to want a piece of this industry if you’re an entrepreneur.
Increase in Vaping Popularity
Most governments in conjunction with civil societies have been at the forefront in highlighting the dangers associated with smoking. In retrospect, people have become more health conscious and abstained from smoking traditional cigarettes. Therefore, most smokers have reverted to getting high from vape juice since it is less harmful.
The popularity of vaping as a culture and the new trend in town has taken over the world by storm. Vaping has also attracted the attention of the global business arena, which has expressed interest in having a stake in this growing trend. As a budding entrepreneur, one business that you should not hesitate to venture into is starting a vaping shop.
Starting a Vaping Shop
Although entrepreneurship is more rewarding in the long term, it is essential to point out that starting a small enterprise is no easy feat. The challenge has been heightened by the grueling bureaucracy and regulations regarding logistics, taxes and FDA regulations. All these factors make starting and even owning a vaping shop an arduous task to most aspiring entrepreneurs.
However, with the right determination and clarity of purpose, you can break through and successfully start a vaping shop. Below are some of the factors you should keep in mind as you look forward to being your vape community’s supplier:
- Consider FDA regulations, permits, and associated licensing- after making the decision that you finally want to start a vaping shop, go a step further and research the permits and licenses you’ll require. The FDA puts tobacco in the same category as e-cigarettes. Therefore, you’ll have to comply with the regulations that have been put in place for smoking. That includes labeling all advertisements and packages with a health hazard warning.
- Check out your local or state vape taxes- It is perhaps the first thing you should look at before starting the venture. Take into consideration that the high excise taxes levied on vaping products may render your brick and mortar store unviable. Other forms of taxes levied upon such products are done either as a milliliter of liquid or as a percentage of the product’s wholesale value. Running a physical vape shop may be prohibitively expensive especially in states like Minnesota and D.C with rates of 95% and 70% are charged respectively.
- Consider insurance- as a potential vape shop owner, you may end up being saddled with high insurance fees when starting. The available data indicates that vape shop owner pays more for insurance as compared to other retail stores. Some of the factors that will affect the cost of your insurance policy are the cost of your inventory, the type of your equipment and your projected revenue.
- Account for the necessary startup costs- your vaping shop will require several things that will definably cost you in the initial stages of setting out. You’ll need to hire and train staff, launch a marketing campaign, purchase accounting software as well as a point of sale, locate a supplier and scout for a perfect location for your business. Most importantly, you’ll need to open a bank account that will handle the revenue that will accrue from your store.
When starting, most people underestimate the cost that will go into purchasing inventory. Consider buying from a wholesale supplier to get the best deal. Some of the items you’ll need are vape juice, battery chargers, vape batteries, and replacement coils.
- Understand your market- the only way you’ll manage to make a profit is by fulfilling a demand in the market. Make it your business to understand your market as well as their preferences before starting. Consider getting vape juice in varying flavors to attract many customers.
Although a vaping shop offers the potential to reap handsomely from the profits, you should also be aware of the underlying challenges such as strict FDA regulations, competition from online retailers and prohibitive excise taxes. However, getting different flavors of vape juice is the key to success and attracting a multitude of customers.