My Book about How to Open a Vape Shop On a Budget

I finally did it!!! I wrote the book that I have been thinking about doing on How to Open a Vape shop. You can find it on Amazon or click right Here

I talked about how fast the industry is growing. Why is the e-cigarette retail business too appealing? The answer is simple. E-cigarettes present an untapped market where you can not only have a business, but also expand it around the corner, around the Internet, and ultimately, around the world.

By starting an e-cigarette business now, you can get into the market before it becomes saturated. Too many products are hard to sell. You have to take a low profit margin on those other products because everyone else is trying to sell the same thing. The demand is great, but the supply is even greater.

And think about this: what else would you sell if you do not sell e-cigarettes? This is the product that will change the way people think about cigarettes. Just try to come up with any other item you could sell that is in the position e-cigs are now. The demand is growing exponentially, and retailers have not yet caught up with it. People are excited about the product, and large companies are, too. The time for e-cig retail is here.

How Much Money Do I Need to Start It?

Like any other business, there is no limit to the amount of money you can invest in setting up your e-cig retail store. Even if you start moderately, you need money for display cases, shelving, cash registers, store decorations and do not forget the initial e-cig inventory.

Start up costs for an e-cigarette business vary widely for two main reasons. First, the amount you have to pay to lease a storefront depends on the real estate prices for the area. For example, to lease the storefront you need in New York City would cost you about ten times the cost for one in a smaller town like Peoria, Illinois. Because of this, I suggest that you choose a location in a small town or suburb. That way you will have less competition and a better customer base for your store.

The second reason for variation in start up costs for an e-cig retail business is that tastes and pocketbooks vary. If you have the capital for a larger, more lavish store, you might choose to spend more money on display cases, inventory and decorations. That is entirely up to you.

However, in this book, I will focus on a moderate-sized business so that you can take advantage of the opportunity even if you are not wealthy. I shoot for a budget of around $20,000. I have actually done this myself. I set up two stores, each with initial costs under $20,000. That provides enough money to set up a nice storefront and have an adequate amount of inventory to serve the customers in nearly any small town you choose.

How Much Money Can I Make?

Every store is different. Profits depend on several factors including the location and demographics of the area surrounding the store. You have to carefully research and analyze these factors to get a solid idea of how much product your unique store will sell.

In this book, I will focus on my own successful experiences to give you a basic understanding of how great the potential is in this retail business. Consider an e-cig store that I own and operate. This store turns a profit of 100% to 300%. That is not a misprint. Yes, our return on investment is up to 300%! And that is return on investment, not markup!

If you are new to the business world, you might not know the difference between these three terms: markup, profit margin and ROI. Before I go any further, let me take a moment and explain the difference.

Markup is the mathematical difference between the cost you pay to the supplier of the product and the amount you sell it for in your store. For example, you might pay $1 for a product and sell it for $2. The markup in this instance is 100%. Yet this does not include your business costs. Somehow, you have to pay to keep your store open and running smoothly and not eat away the amount you gained by the markup.

Profit margin, on the other hand, is a ratio based on your net profit divided by your sales x 100. Does that sound complicated? It is really very simple. The profit margin is a percentage describing the profit you gained– after paying for the product, international shipping, taxes, etc. – divided by the dollar amount of the products you sold.

The most exciting figure is called Return on Investment (ROI). The ROI is figured as (sales-cost)/cost. The ROI is a percentage based on the amount you gain from the investment you make. For example, say your purchase price plus expenses is $2. If you sell it for $4, your ROI would be calculated like this: ($4-$2)/$2. Multiply this by 100 to get the percent. The resulting number is 200, which translates to a 200% return on your investment! And this figure, unlike the markup, takes into account all your costs for the product.

Let me tell you about my own experiences with wholesale vs. retail in my store. One of the products we sell is an Ego style rechargeable single e-cigarette kit with a USB charger. We sell it for $24.99 but our cost for that kit is only $8.50.  The profit margin is (24.99 -8.5)/24.99, or 66% profit margin. The ROI is (24.99-8.5)/8.5. This amounts to a 194% return on your total investment.

We also have a very hot-selling item in our store called the Evod atomizer. Atomizers are big sellers in general, and this one is no exception. We sell them easily at a price of $7.99, and our cost is only $2.00, a profit margin of 75%.  The ROI on this item is 300%!

The product that sells more than any other in an e-cigarette store is the e-liquid. Our price is $4.99 to $7.99 for a 10 ml bottle. Yet it only costs us around $1.75 for each bottle. That’s 65% profit margin for the $4.99 bottle and 78% for the $7.99 bottle. The ROI for the $4.99 bottle is 185%, while the ROI for the $7.99 bottle is a whopping 357%! Does that sound like a good profit to you? If it does, then you will be even happier when you own ROI reaches over 300%! In each of these examples I have taken into account everything it takes to carry the product in my store. I even included the cost for all international shipping and payment system fees.

If you follow the instructions in this guide, use good marketing strategies, and price the products according to the advice I give here, your sales should be anywhere from $5,600 to $8000 per week.

Let us go back to my experience with my first store. The very first week, we did not get all the marketing done in time. Specifically, we were late in sending out the sales flyers. Yet even that week, we still sold $4,300 worth of products. Once we followed through with all our marketing plans, our store never did less than $6,500 in sales per week from the 3rd week on.

To figure my profit from these sales, simply subtract fixed and variable costs from the sale price. As you do the math, remember to include expenses like rent, utilities and other costs of doing business. If you do the calculations carefully, you can easily see that I make an impressive profit in my store. Now here is the great news: You can have the same range of profits if you pay special attention to my advice that I outlined in the book.

If you don’t want to purchase the book, no worry, I will be publishing parts of it on here but in the meantime if you have any question, just ask me by email at bestecighq@gmail.com

 

 

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