How to Cut Costs as a Vape Shop Owner
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Table of Contents:
- Stay On Top of Regulations
- Take Advantage of Wholesale Offers
- Find Your Niche and the Products You Sell the Most
- Buy in Bulk
- Reduce Your Prices
- Offer Excellent Customer Service
- Conclusion
Stay On Top of Regulations
Perhaps the most important thing to do to save costs as a vape shop owner is to stay on top of regulations. This means always checking if there is a flavor ban in your state or if the rules of how you can advertise your business have changed. Just by staying on top of these changes, you can save yourself the headaches of fines and penalties that could impact your business financially. One of the most important things you should consider is the brands that have been denied or have not passed the PMTA process. Selling these brands is illegal and could mean fines and other monetary charges if the FDA finds out you’re selling these brands.
Another important thing to know is which synthetic nicotine brands have filed PMTAs. As you probably know by now, synthetic nicotine is being regulated by the FDA and only brands that have submitted a PMTA are allowed to sell their products. So if you have recently purchased synthetic nicotine products, it’s time to make sure that they have filed their corresponding PMTAs so you are not fined if you are found to be selling tobacco-free nicotine or synthetic nicotine products that have not submitted PMTAs.
Take Advantage of Wholesale Offers
Another practical way to cut costs is to take advantage of wholesale discounts and offers. If your supplier, wholesaler, or manufacturer has many clients, chances are that they cut costs during holidays and special occasions. Our advice? Sign up for email newsletters from these wholesalers and distributors and wait for sales announcements before purchasing a large portion of your stock. For example, Black Friday, Christmas, and summer are all times when sales take place and are great opportunities to stock up on expensive products that you would not otherwise buy.
Find Your Niche and the Products You Sell the Most
Another way to cut costs is to figure out your niche as a vape shop owner. Finding your niche consists of finding the vape products that you sell the most and concentrating your efforts on only selling those products. Maybe you’ve noticed that disposables are the vape products bringing in the most revenue. If so, it would be wise to cut costs by only selling disposables or stocking a large portion of your inventory on these products instead of buying numerous vape juices that don’t have the same return on investment. Or you could discover you sell more vape devices than vape juices or disposables, then pivoting to focus on selling more devices will help you spend less money on products that don’t turn a profit and more on those that do.
Buy in Bulk
This is obvious but we’re listing it here because once you have figured out your niche, buying in bulk is key to increasing profits and cutting costs. Once you have figured out the most sold products in your store, whether it be a certain type of flavor or a certain brand that your customers are always asking for, buying in bulk will help you save a ton of money. By buying large, you can cut costs in shipping and since you will only have one large order, the price per unit will be less, and if you combine this advice with special sales opportunities your distributors have throughout the year, you can save thousands of dollars on every product you buy.
Reduce Your Prices
This piece of advice might be counterintuitive but sometimes reducing your prices can bring in more revenue and business to your store. If your store is located in an area where there are many vape shops, competition will be fierce, in which case the cheapest prices will always be king. If this is the case, then providing the same products at a lower price point can bring in the clientele, and once they realize they can get the same products at cheaper prices, they will soon come to your store in droves.
Offer Excellent Customer Service
The vape shop business is one in which customer lifetime value is extremely important. One customer could mean dozens of purchases since he will continually buy his products from your shop on a revolving basis. Keeping loyal customers happy is the way to cut costs in the long run and this can only be achieved by offering excellent customer service. The happier your customers are, the more likely they will be to make recurring purchases from your store.
Conclusion
We hope that with this brief guide you are able to understand the best way to cut costs and save money for your vape shop business. At VapeRanger, we are a wholesaler and bulk distributor of vape goods. Our prices are some of the lowest in the industry and we invite you to browse all of our products by using the search bar above. With thousands of products available, we are bound to have exactly what you are looking for.
