Why Do Vape Shops Fail? Top 8 Reasons

Vape shops fail for a variety of reasons. In fact, retail businesses fail for pretty much the very same reasons regardless of the industry we’re talking about. In the following document, we’ll talk about the top 8 reasons we’ve noticed that make the biggest claim for vape shop failures, based on our experience alone. Perhaps in this way, we’re giving you the tools necessary to  avoid these mistakes.

Not Enough Investment

Having a strong-enough budget is very important when starting a business-to-consumer (B2C) business model. If there’s something about retail and consumable businesses, it’s that they require a great deal of investment. Your vape shop business is exactly that type of business. Unless we’re talking about online vape shops where the initial investment does not have to be as great as an initial investment in a brick-and-mortar store.

Starting a vape shop requires at least $20k that takes care of rent, staff, inventory, and other costs. There is a large percentage of businesses, regardless of whether they’re in the vape industry or not, that fail due to ‘undercapitalization’.

Staff With a Lack of Experience

Having vape experience or experience running a retail store doesn’t necessarily mean that you have the experience necessary to run a vape shop. You need a combination of both elements in order to run a successful vape store.

The last thing you want is for a potential customer to come into your store and only receive heavy technical advice from a vape expert that doesn’t know how to provide good customer service. Or vice versa, receive really good customer service from a person that does not know what they’re talking about when technical vape knowledge is needed.

Vape store staff need to be there to support customers, lead them in the right direction, and provide knowledge they did not have before coming to your vape shop.

Owner Is in It Only for the Money

Being a business person is fine and all, but sometimes it takes a little more than a good investment to lift a business up to where you envision it, regardless of the industry. It takes passion and time to run a successful business, so having to spend 10 hours a day on a vape shop that doesn’t really do that for you is not likely to end well.

Low Accessibility and Little Visibility

Whether it’s an online vape shop or a brick-and-mortar store, you want people (potential customers) to see your business, regardless if they’re walking by it or skimming through Google search results.

That said:

Forget about tinted windows, make sure that everyone who walks by your store knows that you have a fully stocked shelf full of vape goodies and comfortable seating to chill and vape for a few minutes. If you’re running an online vape shop, then make sure that your SEO strategy is on point.

Selling Too Much of Everything

Sell what really matters. Sure, it’s always a good idea to innovate and branch out into different spaces that may gain you new customers. But selling too much of everything will drive your business away from niches that you already know work.

Figure out who your target customers are, what they’re interested in, and stock up on that.

Not Enough Products on the Shelf

The same concept applies both ways. If you don’t have enough variety, customers are likely to grow tired of your store. Nobody wants to step into a vape store that only carries menthol-flavored vape juice.

Price Is Not Competitive

Having competitive pricing is a huge part of the vape industry. Trust us, we know.

Vape products are becoming everyday consumables for many, which means people will always be looking for products that play nice with their wallets. People do not want to have to buy everyday products at outrageous prices. They’re likely to stick to vape stores that can deliver products on a budget. Which is why you should register for a wholesale account with VapeRanger and allow us to make that possible for your clients.

Don’t Make Things Easy for Clients

If you’re going to talk about VG/PG ratios, wattage, coils, and other technical terms, then you better make sure that your customers know what you’re talking about. This doesn’t mean asking them if they know what you mean but rather teaching them before you go on to talk about the selling points of a particular vape product. Not doing so may make your customers feel dumb or bore them away from a purchase.

Final Thoughts

It’s easy to fail in business, especially in the retail space. Consumers are tough to handle, the lack of experience can be deadly for entrepreneurs, and a few things specific to the vape industry may make it incredibly easy for a vape shop to fail. Luckily, there are ways around it, starting by registering for a wholesale account with VapeRanger.