As an entrepreneur, you will always want to keep your eyes on any industry which is surging in popularity.
Right now, there are few industries experiencing as much rapid growth as the vape industry as this is developing into its own subculture in addition to being an effective way for people to quit smoking tobacco. So what are the economics of setting up your first vape shop and even going on to establish a successful vape shop franchise.
Store or online?
Seeing as vaping has become its own subculture, it can be helpful to have a store where people can come together as a vape shop can become a social hub. This means that a shop should be in a busy area with a lot of foot traffic and an inviting shopfront. You do not necessarily have to have a store, however, as an eCommerce store can still perform very well and it will be much cheaper to operate.
As you would expect, there are plenty of regulations in place for setting up and operating a vape shop so you must make sure that you are adhering to the law. You do not need a license to set up the store, but recent legislation has banned the purchase of e-cigarettes to under 18’s with many businesses operating a Challenge 25 policy. Additionally, there is new legislation called the Tobacco Products Directive (article 20) which tightens rules surrounding the size and strength of product that can be sold as well as approaches to marketing. These rules are ever-changing and Brexit will also have an impact so you need to stay up to date on the latest regulations.
It is a good idea to have a wide range of products so that all needs are catered for. This will include different devices (cig-a-likes, pens, mods etc), e-liquids, accessories and starter kits. Products must also be of the highest quality like the ones that you can get from reputable places like VIP.
It is easy to sell a range of products related to vaping, but in order to succeed and stand out from the crowd, you will need to provide excellent customer service. This is an industry where consumers often have queries and like to be able to talk to experts about the products on offer. This means that you need to be well versed in the vaping world and/or hire staff with excellent knowledge and a friendly and approachable manner.
These are the main areas that you must consider when setting up a vape shop. This could prove to be a very lucrative industry to enter as one which is still surging in popularity as the vaping subculture continues to grow and more and more people look to make the switch from smoking tobacco.