The Economics of Starting a Vape Shop
When Oxford Dictionaries coins “vape” word of the year, you know the industry is blowing up mainstream culture. And the numbers suggest that this isn’t a fad that’s going away anytime soon—by 2025, the vaping industry is projected to be worth $61.4 billion. It’d make sense for entrepreneurs, both new and established, to want a piece of this lucrative industry and start a Vape Wholesale
How did vaping get so popular? A lot of it comes down to the decline of smoking as a result of our newly health-conscious society. According to research, it isn’t necessarily healthy, but vaping is less harmful than smoking old-school cigarettes. And as more states legalize marijuana, vaporizers made specifically for marijuana have peaked in sales, too.
And when an industry becomes this popular, the business world takes notice. In their research, Quartz found that there are about 2.7 vape shops for every bowling alley in the US, and they continue to be one of the fastest-growing business trends today. If starting a vape shop is something that entices you, below are a few points you should consider about the costs of doing business.
We’ll be straight with you: Starting any small business is no easy feat, but thanks to FDA regulations, taxes, and other crucial logistics, owning a vape shop can be a particular challenge.
That said, in 2016 there were an estimated 35 million vapers worldwide, with the US representing the largest market by far—and someone has to provide those enthusiasts with the supplies they demand. If you’re determined to be your vape community’s supplier, keep the following steps, and their costs, in mind as you launch your vaping business.
A word of warning: Depending on where you live, super-high excise taxes on vaping products can make your brick-and-mortar location a non-starter. Although there’s no federal excise tax on vape products at the moment, certain states and municipalities do levy taxes on these products, either as a percentage of the product’s wholesale value or per unit or milliliter of liquid.Electronic Cigarette Wholesale
The tax values vary across these states and localities, but the highest rates (like Minnesota’s 95%, or D.C.’s 70%) can make running a vape shop prohibitively expensive, as vape shop owners need to hike up their prices accordingly—and potentially lose business to lower-priced online sellers.u2022eney7485yyWEEEEDD