Vaping is an industry that is on fire. Currently, there are between 6,000 and 7,000 vape shops in the U.S.—not counting smoke shops, convenience stores and other hybrid outlets that also sell vape products. This number is not expected to shrink anytime soon.

Distilling the Numbers

As the number of tobacco smokers continues to decline, vape stores remain one of the hottest business trends. According to Wells Fargo Securities LLC, vape retail sales are projected to soar above $16 billion in just seven years.

And while the sale of traditional cigarettes accounts for more than $65 billion in annual sales, Wells Fargo Securities sees the potential of vape products to surpass tobacco cigarettes by 2023. With vape stores mushrooming throughout the country, many entrepreneurs are asking how to get a slice of the action. The answer is that, with some guidance and the right retail products, opening your own vape shop can lead to a lucrative business.

Walking Through the Steps On How to Open a Vape Shop

Before the service counter and display cases are ordered, you need to begin with the initial steps every startup must take before it can run:

1. 1. Prepare a business plan. Identify your competition and figure out where you fit in. A sound financial assessment is also crucial for establishing your budget. According to Fundera, opening a vape shop can cost between $7,420 and $10,020 per month—without product.
   2. Choose a business name. This is about building your brand value. Many people often associate a brand with a logo or trademark, but it is much more than that—it is your company’s reputation. If you develop a logo or trademark, register it. These are considered financial assets that can be used as collateral.
   3. Apply online for an EIN. You need an Employer Identification Number (EIN) to open a bank account, secure a credit card, and transact business. Apply online at www.irs.gov.
   4. Incorporate. Decide which corporate entity makes the most financial sense to your business. An LLC or S-Corp is probably going to be more sensible than a C-Corp.
   5. Find a location. While you need a location that is ideally situated in a high traffic area, you also want to pay attention to other critical factors including convenient parking and a space that provides adequate room for display cases.
   6. Obtain insurance. Obtain property and commercial insurance. You might also be required to have workers’ comp and other coverages. Consult with a knowledgeable professional who can competently guide you.
   7. Secure domain and create website. Make sure your website can be adapted for mobile devices and apps that locate you, including Yelp. This can expand your exposure, especially to the demographic who most likely will be using mobile apps to find you.
   8. Order Fixtures:
      • Service counter and ledgetop counter with showcase. An appealing service counter is essential. New customers will want to feel welcome and experienced patrons will want to try new eJuice flavors. An inviting ledge top counter with showcase is a staple of your shop’s décor and your customers’ experience.
      • Full vision display case showcases. These hold your hardware. Mods, tanks, vape pens, starter kits and accessories are best presented in full vision display case showcases that set the stage for your star products.
      • Slatwall.  slatwall can help boost your shop’s revenues by allowing you to attractively display your eLiquids.
      • Glass shelves. Glass shelves can make your product shine. Whether its hardware, eJuice or customized mouthpieces, you need a place where you can organize your inventory and make it sparkle.
      • Lighted tower display showcases. These enable you to feature special items with a bit more dazzle. Spotlight unique drip tips and devices in a lighted tower display showcase.
      • Showcases. Displaying hardware and cases in a seasonal showcase can create a center stage for products you want to promote.
      • Glass cube displays. A glass cube display is versatile. It can be strategically placed on top of or near another display case, arranged in a collection with other glass cube displays, or juxtaposed to highlight a new item.
   9. Order inventory. Avoid buying too much inventory. Offering about 40 flavors of eJuice is a common recommendation. Diversify flavors and nicotine levels to satisfy a broad range of preferences. Starter kits should account for about one-half of your mod inventory, with roughly 40% in the mid-price range. No more than 10% should be high-end inventory. You also need an array of coils, tanks, batteries and chargers.

Final Thoughts

As with any retail business, always remember that customer service is your top priority. When you are as welcoming to the newcomer as you are to the initiated, you build customer loyalty and reinforce your brand value. And that’s not blowing smoke.

If you’re a Specialty Store Services Customer who would like to open a Vape Store, just Email Us. You can also shop for all of your Vape Store supplies online on our website, Specialty Store Services, by Live Chat, or by phone at 800-999-0771.