5 Mistakes to Avoid When Starting a Vape Shop Business

Starting a vape shop is similar to any other retail business; you need to find a suitable location, great suppliers and establish a steady customer base. However, the industry itself behaves irregularly, especially from a regulatory point of view.

Nevertheless:

There are a few common mistakes you can easily avoid and a few other things you can start doing to make your business thrive.

Overstocking on Inventory

This caution can be shared across multiple industries. As long as you’re selling a physical product and not a service, defining how to manage your inventory is crucial to your business strategy.

If you run an online vape shop, then you may have a little more leniency in your inventory management strategy because you are not limited to having a warehouse full of products that you need to sell. You also have the option of working with a dropshipping methodology that allows you to place orders from your vendors once your customer has placed their order. This would eliminate the need for carrying inventory.

But if your vape shop is a brick & mortar store, then overstocking on inventory is a major threat to the profit of your business. In order to avoid this, you should have an idea of how much you sell for each brand and item, and understand what type of products and brands your main customers prefer buying.

Unwittingly Purchasing Counterfeit Merchandise

Knowing how to spot counterfeit products is a very important part of owning a vape business. Investing in a poor-quality e-cig is something that you might decide to do if your customers prefer a specific brand, but counterfeit products are a whole different ball game because they may put consumers at risk.

There are a few steps you can take towards avoiding getting counterfeit merchandise in your warehouse. For starters, you may want to stick to vendors that you know and trust. On that same note, purchasing products across seas is very risky but if you decide to do it then we strongly recommend that you travel and get to know your source firsthand.

While you might not be able to get top brands right away and you’ll have to build yourself up to that, carrying brands with a good reputation will definitely help avoid irregularities. So, as long as you’re able to, try to carry brands that would not risk their good reputation for a higher profit. This part of the strategy also ties into the trust you have for your vendor.

Regardless:

Even if you take all the necessary precautions, counterfeit products are a part of any consumer products industry and everyone is subject to falling victim to this. If you don’t know how to check for quality, make sure you check out our guide on 12 Ways To Spot Fake Vape Juices.

Do Not Underestimate the Importance of Customer Service

When making the decision to buy a product from a retailer as a consumer, especially when other stores carry the same brands as you do, it is highly likely that potential customers will decide who to buy from for other reasons than simple product availability. Although having the right products in stock is a huge part of it, other variables like the price of the item and the added value your staff adds to the sale are also very important.

For instance:

If your customers do not know exactly what product to buy, having a knowledgeable and attentive staff plays a very big role in their decision. Having people that know what they’re talking about in your store may persuade customers to buy more products and feel more confident in their purchase with you.

Be Careful When Using Social Media

Yes, use social media.

No, don’t use it like it was just any other industry.

Unfortunately, the vape industry is not a calm, stormless sea. In fact, it’s far from it, especially in a regulatory sense. One of the most common vaping industry mistakes to avoid is thinking that advertising your business is just as easy as any other retailer in any other industry. Because you are selling nicotine and an innovative product that many people are yet to understand, the law around advertising can be quite strict, especially when it comes to social media.

That said:

Make sure you brush up on your ‘dos and don'ts’ with an expert on the subject before going all out on social media.

Make Sure You’re Buying FDA-Approved Products

As briefly mentioned above, the vaping industry is full of strict and constantly changing regulations that may affect your overall business strategy. Perhaps one of the most important things you need to be aware of is making sure that every product you put on the shelf has been FDA-approved or filed for a PMTA (premarket tobacco product application) that allows it to be sold to the public.

Things You SHOULD Do

Other than knowing what not to do, it’s also beneficial to have an idea of what you SHOULD do.

Reflect Brand Identity In-Store

Anybody with the knowledge of where to buy products and how to rent a storefront can open a vape shop, technically. But not everybody can market their vape shop well. It’s up to you to make it so your store reflects what you are selling to your customers. Make sure that your store goes hand-in-hand with your brand identity, making it easier for your clients to connect with your brand.

Find a Niche

We know you’re selling vape products like any other vape shop, but that’s not necessarily all you do. Vapers are constantly looking for specific stuff, and inside that market of vapers, you can find your own niche. Perhaps you cater to older folks, to people transitioning from smoking to vaping, or to people that are looking for organically produced vape juices. Whatever the niche is, it’s up to you to find it, but if you find one, you may end up making your business even more profitable.

Cultivate Return Business

Finding new clients is a huge part of growing your business. But maintaining a constant cash flow may make all the difference between your vape shop surviving or quickly extinguishing, and maintaining returning customers is the key factor to getting you there.

Final Thoughts

There are many standard things you need to avoid doing or start doing to have a successful vape shop. But because you do run a business in the vape industry, there are other things that require you to be a bit more specific. Above are just a few of the most common mistakes you can avoid and a few other good practices you can start doing quite easily.