Starting up a retail shop requires detailed planning, a good investment, and lots of patience. Over the past decade, many vape shops have been opened across many countries to accommodate the increasing use of vape among people. In 2016, there were around 35 million vapers worldwide.
To meet this growing demand, many investors think of this as an exciting investment opportunity. The vaping industry has provided cigarette smokers with a healthier version or an alternative. By the year 2025, the vaping industry is projected to be worth $61.4 billion.
You may wonder how to start a vape shop on your own.
About Vape Shops
Vape shops are special retail stores that sell electronic cigarettes and their related products. They do not sell tobacco products, but e-cigarettes and e-liquids. Purchasing in a retail store is much better than buying online, as the customer can test and explore different products before making a purchase.
Step-by-step Process Of Starting A Vape Shop
Research the market
Starting a small vape shop is quite affordable. Smaller shop expenditure will be around $35,000 to $ 75,000. For a bigger shop, it might cost around $100,000 or more.
Write A Business Plan
To answer the question of how to start a vape shop, you should always write a business plan. This is helpful for you and also for the bank, as it increases the chances of starting a successful business.
Name The Business And Select the Location
Choosing a business name that resonates with your customers can be very challenging but essential to build your brand. Selecting a location for your shop is also very important. If you want to start a vape shop, it is beneficial in high-traffic retail areas, because this location can help to increase public awareness of the store.
Handle Business License and Permits
A vape shop owner needs to be abided by FDA regulations that govern tobacco sales in their individual states. Those are:
- Inspecting photo ID of customer, who looks under 27 years of age.
- Selling only to the customers, who are of appropriate age.
- No giving free samples of products.
Next will be the time to contact suppliers and wholesalers, who offer lower prices with a large selection. Choose a supplier who provides faster shipping and better support with ease of communication, based on the supplier’s location and available brands, as well as with return and warranty policies.
Create Potential Sales Channels
It’s important to support your channels and treat them as customers. A good way to do this is by running marketing campaigns to generate leads, providing sales tools, and marketing funds.
Divide Your Budget
It is always better to have a clear cost overview to manage your budget. Open a business bank account to track businesses’ income and expenses. Get business insurance for full coverage; insurance policy cost may vary depending on the business size, location, value of its inventory and equipment. Divide your budget to hire staff and accommodate your partners. Set up a good accounting system for the long-term success of your business.
Create Suitable Marketing Strategy
It is important to bring new customers to the shop. Use social media marketing, online advertising, print advertising, or sometimes radio advertising to reach all your targeted audience. A shop owner can also keep his expenses down, by performing most of the marketing themselves.
You should be prepared for a public response when you open a vape shop. As a shop owner, you will share accurate information about the product, but never expect the public’s response will always be positive. How to start a vape shop is more than just operating your business, but also handling customers’ responses.