By Vape Flavor on Sep 18, 2017 12:26:52 PM
Are you looking for a business opportunity in a relatively new and rapidly expanding marketplace? If the answer is yes it's well worth exploring the idea of a vape business
as there are many different opportunities for savvy entrepreneurs in this space.
Today we will explore the different types of vape business opportunities and give you some insights into how you can get started in the vaping industry. But first, a little background and a rationale for why starting a vape business is one of the hottest opportunities today.
Vape Business - A brief History
The modern e-cigarette was invented in 2003 by Chinese pharmacist Hon Lik, According to the story Hon was a heavy smoker who watched his father die of lung cancer. Not wanting to suffer the same fate the idea for the first E-cigarette apparently came to him in a dream.
The device was crude in design consisting of a battery, a plastic cartridge containing a nicotine solution suspended in propylene glycol, and an ultrasonic atomizer.
In 2006 his product was introduced to the world and by 2007 it was already starting to gain popularity in the USA. Thus modern vaping was born and has continued to grow exponentially ever since. In fact ,Forbes reports that vaping brought in about $3.7 billion in the U.S. alone in 2015.
According to a Research and Markets report called“Global E-Cigarette Market Size, Share, Development, Growth and Demand Forecast to 2022,”the e-cigarette market is expected to climb to more than $27 billion by 2022.
With several reputable research organizations forecasting significant market growth now is the perfect time to get on board in the vaping industry.
Vape Business - Challenges
The growth of the vaping industry has not been smooth sailing and there are still many challenges and hurdles to overcome. For a long time vaping was aligned and categorized with smoking by government health departments and regulators. Many battles have been fought over vaping and .finally governments and health authorities are acknowledging the benefits of vaping as a healthier alternative to smoking.
In 2017 the British department of health's tobacco control plan, Towards a smoke-free generation: tobacco control plan for England (PDF), came out and officially endorsed vaping as an official harm minimization strategy in the battle against smoking related illnesses.
Similarly the USA's FDA recently did a back flip on its proposed anti-vaping agenda, postponing, for the next 4 years, legislation that would have crippled the industry in America.
While the vaping industry is still in it's infancy and a little volatile, there’s one thing we know for certain: it's not going to disappear any time soon.
Sure, right now the vaping industry is a little fragmented and as the sector becomes more regulated and starts to mature there will be some obvious filtering of the vape kit and juice supplier markets. However vaping is here to stay and there's no better time to get involved in this market than right now.
So what are the key vape business opportunities?
Vape Business - 10 Best Vaping Business Opportunities
Regardless of your cash flow situation and / or expertise there are several emerging opportunities within the vape space. From developing your own brand to becoming an online affiliate seller there are money making opportunities for everyone.
The following sections of this article will address each one in more detail. We will start with the most expensive and difficult and work down to what we consider the easiest.
To jump to the section you are interested in simply click on the title link below.
- Launching your own Vape Kit brand
- Creating your own line of E-liquids
- Wholesale Vape and E-cigarette Distribution
- Open a Vape Franchise Business
- Opening a Brick & Mortar Store
- Starting a vape kiosk
- Offering Vape Product Components or Accessories
- Building an online vape shop
- Becoming a Reviewer
- Joining Affiliate Programs
In recent times there has been a significant explosion of new vape kit brands in the vaping business space. While the rewards of success in this sector could be great the start up costs are high and competition is fierce. Design and manufacturing of your product is the easy part, the expense really comes with securing brand reputation and distribution and this will require a significant budget for brand marketing and promotion.
When it comes to manufacturing, the best alternative is to look to established and reputable OEM /ODM manufacturers, most of which are based in China.
China First Union, established in 2004 is one of the oldest and most respected vape kit manufacturers in the world. With over 5000 staff, ISO quality assured manufacturing procedures and an expert team of design engineers they have the key capabilities to meet you vape kit design and manufacturing needs.
The e-liquid market is arguably one of the most lucrative , but also competitive sectors and with good reason. While a vape kit is used to deliver your vapor it's the e-liquid or juice that is the consumable item and therefore has the potential for the highest return on investment.
With that said, juice manufacturing is probably the most complex business opportunity within the vape space and to do it professionally will require both significant capital investment and a strong knowledge of the vast array of local, national and international vaping regulations.
Simply put there are just too many quality control measures, manufacturing safety standards and product ingredient regulations for most start-ups.
Many countries impose their own regulations with regard to juice recipes and flavors. For example Finland and Norway have banned nicotine, so all juice sold there has to be 0% nicotine. Similarly in the USA a recently passed Texas Bill prevents companies shipping juice without obtaining picture ID.
In both Europe and America there are also moves afoot to put numerous stringent restriction on the making and sale of juice, which, if passed, will see the end of many small juice-making companies.
With that said, it's not all doom and gloom. In fact the imposition of tighter regulation of the e-juice industry is a good thing that in the long term can only boost consumer confidence in e-juice brands.
So if you're still serious about pursuing your entrepreneurial dream of launching an e-juice brand how can you tackle all of the manufacturing, packaging and marketing compliance?
The answer is to outsource your juice manufacturing to a professional ISO quality assured e-liquid manufacturer. Partnering with professional e-liquid contract manufacturers is both the quickest and safest route to starting your own brand of e-liquids.
There are several companies that can provide this service and they will take care of all the manufacturing, branding, packaging and labeling for your juice.
The downside -most of these companies will require reasonably large minimum order quantities often in the thousands of bottles.
However before you jump in there are several factors to consider when choosing a manufacturing partner.
Firstly, will you be providing your own e-juice flavor recipe or will you simply be re branding a factory developed flavor?
Several juice manufacturers allow you use their tried and tested e-liquid flavors and formulas to easily launch your own brand. You simply pick the flavors you like and that you think will sell under your brand name. You may also be able to select the nicotine levels, percentage of PG (propylene glycol) and VG (vegetable glycerin), and the type and size of bottles.
Then comes the difficult part: developing a brand name, business model and plan for distribution, which is most important element in your e-liquid brand’s success.
If manufacturing your own brand is not your cup of tea, you could consider becoming a wholesale vape distributor. As vaping expands across the globe many of the major vape kit and juice brands are offering wholesale distribution partnership deals, many with exclusive license to distribute on their behalf in certain regions.
Obviously to be successful in this sector a strong background in retail distribution and sales would be a significant advantage. In my mind these opportunities are ideal for anyone with experience in supply to anywhere where tobacco products are traditionally sold. For example kiosks, convenience stores, liquor stores, tobacconists and small supermarkets. It's only a matter of time before these type of stores begin to offer vaping products as a means to replace the significant loss of income from declining cigarette sales.
To discover more about wholesale distributor opportunities just search for vape kit and juice brand websites. Most will have a link to their wholesale partner programs.
If you're searching for a way to get your foot in the door in this fast-growing industry, but you don't have a lot of experience in retail and business management you could consider a vapor shop franchise.
We all know the advantages of franchising. Just think McDonalds or Starbucks. What makes these businesses successful is a proven business model with strong brand promotion, business systems training and marketing support.
While the vaping sector is fairly new, we are already starting to see the emergence of vape franchise stores. The downsides to this model are the higher establishment fees (I recently saw a UK vape franchise with a start up license fee of 50 000 pounds), the tight restrictions placed on the store with regard to the types of products you can sell and the obvious higher fees and royalties that come with owning a franchise.
With the continuing growth and acceptance of vaping we are seeing an increasing number of specialist vape shops popping up in cities across the globe.
Most are designed like a hybrid cafe or bar where customers can not only buy vaping products but also enjoy the social atmosphere of a cafe like environment.
Sounds cool, but like any retail premises there are lots of expenses including rent, shop design, signage and insurance. Also, depending upon where you live there could also be local government licensing requirements, so its advisable to do your homework on your local laws and regulations first.
Outside of initial premises set-up there's also the expense of setting up your store inventory. You're going to need a range of vape starter kits, mods, accessories and e-liquids and this can add up very fast. When it comes to stock it's important to choose a reliable vape and e-cigarette wholesale supplier. Partnering with the right suppliers can make a significant difference to your bottom line profits.
So what's it going to cost to set up your own vape shop? Depending on the size of your store you can expect to outlay between $25 000 US and $50 000 US. just to get started. While this may sound a little expensive, if you get your location, branding and marketing formula right, the potential return on your investment can be well worth the effort.
If you like the idea of opening a vape shop but feel the cost burden is out of your reach, a cheaper alternative is to set up a small vape kiosk in a high traffic area like a shopping mall. Sure you don't have the big space and cafe or bar like environment but you will have great visual exposure and lots of daily foot traffic.
As with opening a dedicated vape shop you will still need to invest some startup capital, comply with your local, state and federal licensing laws and partner with great wholesale distributors. However the advantage here is the high visual exposure and daily foot traffic which will save you lots of money on advertising.
If you're an existing retailer, whether that be a liquor outlet, convenience store, gas station, news agency, novelty shop or existing tobacco kiosk one of the easiest ways to increase your revenue is to team up with an e-cigarette supplier and start offering cheap vape starter kits and disposable e-cigarette products.
Research from the Global Cigarette Market Size, Trends and Forecasts 2017-2021 clearly shows that cigarette sales across the USA, UK and Europe are in decline and traditional cigarette retailers are feeling the pinch of lost revenue.
In stark contrast the sale of vaping related products including kits, disposable e-cigarettes and juices is continuing to grow making them the ideal substitute to replace the declining income from tobacco sales.
If you're in this market and are looking to add vaping products to your inventory I highly recommend taking a look at the new vape pod starter kits. Retailing for a similar price to a packet of cigarettes these are the ideal product for non specialty store vape retailers.
With online e-commerce booming it goes without saying that building your own online vape shop could turn into a very lucrative venture. However simply building an e commerce store with Wordpress or using an e-commerce platform like Shopify or Big Commerce will not make you successful.
Success online requires a dedicated and consistent approach to content driven marketing and social media promotion. Competition for online customers is fierce in the vaping space and there are a few hurdles to overcome. In particular advertising of vapes and vaping related products is not allowed so running PPC campaigns to drive traffic is out of the question.
Then there is also the issue of stock control. You will need to purchase wholesale stock and partner with a good shipping company to ensure timely and safe delivery of purchased products.
With that said the online vape marketplace is still growing and it would not be beyond the reach of a savvy marketer to build a significant website and social media following.
As an example, vaping360.com didn't exist 2 years ago, but in just over 24 months they have managed to go from a vape blog startup to a thriving online business driving over 40 000 visitors a month.
The advantage of the affiliate route as opposed to operating your own independent e-commerce platform is there is no need to hold stock. Rather you simply redirect your customers to the brands sales pages through your website links and social media messages.
An alternative to building an online vaping store and potentially an easier way to cash in on the vaping boom is to become a product reviewer. To do this successfully you will need to first and foremost, really like vaping. You will also need to build a good social media following and feel comfortable in front of the camera.
To become a really attractive reviewer prospect for a vape brand you will ideally have a vaping blog, Twitter, Facebook, Instagram and YouTube account with a reasonable following. It will also be important to school yourself in the jargon of vaping. Having a good knowledge of words like atomizers, clearomisers, sub ohm vaping, coils, tanks and much more is important.
Simply put, the more you can offer a vaping brand with regard to potential market reach the greater the probability of landing a reviewer job.
So now you're probably wondering how much a vape kit reviewer can earn? The answer really depends upon your reputation as an expert and your social following.
If you're just starting out I would advise offering review services for free in exchange for the vape kit or juice. On average a decent reviewer with a following can earn between $200 US and $500 US per review, however if you can build a big following across social media you could easily earn $1000 US to $5000 US per review.
If all of the above seem a little beyond your reach, arguably the easiest way to cash in on the vaping boom is to become an affiliate seller of vape products.
Many vape brands and wholesale distributors now offer vape affiliate programs with some paying sales commissions of up to 30%. In fact this is how many vaping blog, vape e-commerce websites and vape kit reviewers monetize their websites.
While there is big money to be made owning and operating a dedicated vaping blog or social media channel this requires a lot of work to continuously provide good content to keep your audience engaged.
However if you're just looking to further monetize your existing followers anyone who has a website, social media following or email marketing list can easily cash in on the vaping boom by simply sharing offers from their vaping affiliate programs with their online communities.
Best Vaping Business - Future Opportunity
Starting a specialist marijuana vape shop is definitely an emerging opportunity. As legislators across America and the globe re-think their laws and policies on marijuana, especially medical marijuana this is going to be the next big thing, so I highly recommend keeping an eye on the cannabis space.
While there are lots of great opportunities in the vape business space, starting any new business venture requires both planning and commitment. Our advice, don't rush in, do your research and develop a comprehensive business plan.
The list above is by no means complete so if you have another business opportunity in the vaping space we'd love for you to contribute to this post and share it the comments below.
Good luck with your vaping business ventures and happy vaping!