Vaping Business: Pros and Cons
It's no secret that vaping has become increasingly popular. There are many people across the globe looking for the best vape and other vaping products. This can be attributed to the fact that research indicates that vaping is less harmful than traditional smoking. According to this study, there is a dramatic difference in the volatile organic compounds between smokers and vapers. The research shows a difference of between 57% and 97% for acrylonitrile, ethylene oxide, and vinyl chloride.
The researchers also found that the levels of nitrosamine, which is a potent carcinogen, was as lower as that of the people using nicotine replacement therapy and even lower than this in some cases. It is such findings that are making more people start using vape mod kits as replacements for traditional cigarettes. This indicates that starting a vaping business can be a great idea. But, before venturing into vaping business, it's wise to consider its pros and cons.
Every business person knows the importance of taking note of a growing business trend. This is the case for vaping business. Quartz reports that for every bowling alley, there are 2.7 vape shops in the U.S. What's more, setting up vape shops continues to be among the fastest-growing modern business trends. Such information must entice every business-minded person to venture into this industry.
There are many vaping products that a vaping business can specialize in. For instance, you can sell vape juice, the best vape mod (see it here), and other vaping accessories. Ideally, there are many vaping products that you can sell to meet the needs or demands of your target market. When you stock your store with many, quality products, you will attract both casual and enthusiasts.
The vaping industry is now blowing up the mainstream culture. It's not surprising that vape was the word of the year in 2014. What's more, adequate numbers are suggesting that vaping is not going away anytime soon. As of 2015, it was projected that the vaping industry was worth $61.4 billion. According to the BBC, there were about 35 million vapers globally. The report indicates the largest market for vaping products is the US. And these vaping enthusiasts need somebody to supply them with vaping products. As such, venturing into an industry whose popularity is growing is a sensible move for an entrepreneur whether established or new. It means you are venturing into a lucrative industry.
As hinted, it's not a must to have a brick and mortar store to start a vaping business. You can run a successful online vaping business. As long as you market your online store properly, you will get more customers flocking into your virtual storefront regularly. Ideally, you can grow your vaping business via online platforms like Facebook or use SEO. Use such platforms to promote your vape box mod kit, e-juices, and other products on a regular basis. Establish strong, lasting relationships with customers and focus on meeting their needs. This will enhance the success of your vaping business.
The society is becoming more conscious about health. According to media reports, unequivocal evidence indicating that old school smoking is harmful than vaping is piling up. More smokers are switching to vaping on realizing that it is a lesser harmful alternative to smoking. It's not surprising that sales for marijuana vape mods are peaking. As such, starting a vaping business to sell such in-demand products is a wise move.
Local or State Vape Taxes
Depending on your location, starting a brick and mortar vaping business can be challenging due to high excise taxes. Currently, vape products do not have a federal excise tax - however, some municipalities and states levy taxes on the products either in wholesale products value or per liquid milliliter or unit. This tax differs across localities and states. However, the rates are generally high. For instance, D.C charges 70% while Minnesota charges 95%. This makes running a vape business prohibitively expensive for some people. That's because you have to hike up the prices of your vaping products. Unfortunately, not every vaper will be ready to invest in the most expensive vape mod or e-liquid.
Licensing, FDA regulations, business registration, and permits are other cons that make starting a vaping business challenging. According to the FDA, e-cigarettes are tobacco products. Therefore, to sell a vape box mod kit or any other vaping product, you have to comply with the specific regulations set by the government. These include having a health hazard warning on all advertisements and packages for the tobacco products that you sell. Ideally, you have to make sure that you have complied with the manufacturer's and FDA tobacco retailer's regulations.
Additionally, you may have to acquire permits and licenses to run a vaping business legally depending on your city, county or state. These licenses and permits come at varying fees depending on your location.
What's more, you need to set up a business entity to ensure that personal assets are protected if another person sues you. C-corps, S-Corps, LLCs come with protections for limited liability. These can be your best bet. But, bear in mind the fact that the cost of business registration varies between states.
You need capital to start your business. Do not underestimate the amount required to stock up a vaping business inventory. Some of the products that you may need to start with include vape juice, battery chargers, vape batteries, e-liquid, vape box mod, replacement coils, and hardware. You also need to conduct extensive research to know the place where you can get these products at the most reasonable, wholesale price.
What's more, even after incurring a high startup cost, you will have to spend more on marketing your vaping business. That's because you will face competition from other vaping businesses. And when marketing a box mod vape, your vaping business, or any other vaping product that you will be selling, make sure that you comply with the FDA regulations on the sale of e-cigarettes.
When starting a vaping business, it's important to know that it has its pros and cons. Though there are advantages of a vaping industry, it won't be smooth sailing all the way. Even when you sell the best mod vape, there will be another retailer selling the same product. Therefore, be ready to face stiff competition, prohibitive taxes, and strict regulations by the FDA among other challenges. Nevertheless, if you are determined, you will eventually run a successful vaping business.