If you’re looking for a promising business this year, starting your vape shop can be a good investment. For the past few years, the demand for vape and e-cig supplies is still growing.
In an article posted by BBC News, the number of vape users went up to 35 million in 2016. Business experts also projected that this number might increase to 55 million by 2021.
While the figure looks promising, this doesn’t mean you should dive into the market without doing your research about the industry. Just like any other business, you need to put a lot of effort before throwing an investment.
To help you get started, feel free to follow the guidelines below:
1. Evaluate the Local or State Tax Laws
The first thing you need to have in check is the tax laws. Keep in mind that fees may vary depending on the location of your business. While there is no federal excise tax on vape products at the moment, several states and municipalities have implemented taxes on vaping products. Today, Minnesota levies the highest rate at 95%; while California has the lowest at 27.3%. On the other hand, Chicago has the highest rate in terms of per unit tax with $0.80 plus a per millimeter rate of $20.20.
Knowing the tax law is important to make sure you comply with the requirements and avoid getting penalized by the authorities. Moreover, this should help you decide if this is the right investment for you. It gives you an idea on how much would be your possible expenses and the return of investment.
2. Know more about the Market
One of the advantages of e-cig or vape business is it’s easier to reach or expand your network. Other than the foot traffic on your physical store, you can take advantage of online marketing. There are many tools you can use such to create engagement with your audience.
Follow the latest trends when it comes to customers’ taste with e-juices and mod setups. You can also post surveys to get their feedback.
3. Find a Reliable Supplier
Having a reliable supplier is one of the biggest factors in this business. This is why most startups prefer a vape or e-cig franchise. Their packages usually include a variety of e-liquids and vape juice, starter to advanced mods, cleaning kits, and tutorial sheet for beginners. Some franchising may also help you promote your business. They will provide you with different marketing materials to grow your business. They can even put you on their list of trusted vendors.
In case you decide to set up you own shop, you need to be familiar with the top products. The key here is to balance out your inventories to avoid over-stocks. You should also double your effort to promote your brand.
4. Be Creative with your Brand Promotion
One way to boost your store is to be proactive with the community. Hosting small gatherings should be a good start. You can give discount vouchers to participants with sample e-liquids or vape juice. You can also offer membership cards to get more customers.
Following these tips may help you have a strong start with this business. Again, make sure to do a lot of research before making an investment.