Buying an ecig shop > risky business ?

[starstruck]

OK - I know the legislation is changing with the following key impacts:

• Nicotine levels going to be sub 20mg with Manufacturers likely to pitch in about 18mg to be safe

• LARGE businesses likely to apply for medical licences meaning that the products could be categorised as smoking cessation products and be made available on prescription (good for the large businesses - not so good for the retailers !)

• EU rules will impose much higher standards on the kit (reliability / consistency of operation / testing / licensing etc) meaning extra investment needed and cost to the suppliers - and ultimately customers but with the manufacturers and retailers likely being squeezed first.

Add to this that the market is now reaching saturation with e-cigs available in many, many outlets (from markets to petrol stations to the large grocery stores) and there will no doubt be a continued pressure on making any money   !

Am I mad ? Has this boat already sailed ? Will the smaller independents still have a future by the end of 2016 ???

Really interested in any thoughts and opinions on this ?? A potentially large outlay to get started - large enough that Mrs Starstruck would be turfing me out if we lost all our savings !




  

[igual]

If it were me no, I'd wait until the TW court hearing

[DiscoDes]

It is a risky thing to do as the TPD is on the horizon. However it is still not clear what the Government will do, whether they will fully embrace the TPD or continue with their "light touch" approach. We are winning some battles (ASH, smoking cessation groups etc.) and we are losing some (Wales, Trains etc)

I think your biggest threat is China producing cheap products and the very short life of stock with people clamoring for "the next big thing", some are good and some are not so good.

It also depends on the market you are going for, the enthusiast/educated vaper or the "man in the street" vaper that wants to call in a shop and buy their ecig gear and liquids, this market is definitely near saturation level unless you can find a location that does not have another vaping shop in the vicinity and has a good foot flow.

It will be a MASSIVE gamble.

GOOD LUCK!

[Deleted]

I'd say go for it, but it's not my money. I've always been a guy who's had a go, no regrets and best of all no "I wonder if or what could have beens" . My advice is don't risk everything and have a sound business plan, you'll run at a LOSS for a while so be ready with emergency funds. DONT use your home as a start up fund ! And DONT use credit cards to tie you over during the start up.

Good luck

[phatfil]

Imho the future for retail in the UK will be in selling Quality Juice, having a place where you can let folk taste/test juice before they buy is going to be the main reason for folk to step inside, you may also sell some h/w too but most vapers will find browse their way onto sites like this eventually and discover the sites like fasttech etc for the bargain basement prices that will be impossible to compete with when brick and mortar overheads are taken into account.

The only UK retail outlets near me sell cigalikes or ego battery and protank type kit, so perhaps my desire for a BnM shop where i can test a few juices before i commit to buying a big bottle is leading my suggestion???

Good luck with whichever venture you invest in..

[baron]

I have two Vape shops in Town, one has testers for all of their juices, with a small range of hard ware.
The other has a larger range of hard ware and juices, but no testers.

So I usually go to the shop that I can test vape a juice I am interested in.

Good luck if you decided to invest your family fortune...

[toots]

starstruck - If it was me thinking of going into the vaping business I reckon I'd go more for the DIY side of things, you know, concentrates, PG, VG, Nic (hmmm dependent on TPD of course), plus all the gear you need for DIY mixing, such as bottles, pipettes, syringes etc etc etc etc.

I would do everything a DIY mixer would need all under one roof making the mixer's life easy peasy, not having to go here there and everywhere to pick up bits here and bits there. I'd also stock all the gear needed for rebuildable tanks such as wire & cotton, ohms readers etc etc etc.

By going in this direction you wouldn't be competing with China so much on the shiny stuff and the TPD would not affect you (other than possibly the nic base liquid). Also I think a lot of people will be going down the mixing route once the TPD comes into effect. And if the governments put up prices via taxing pre-made e-liquids then I think that would turn many to mixing their own in the future.

In my heart I'd love to own a shop with all the new shiny's in but my business head would tell me a safer route to go down at this stage in the vaping world would be the DIY route.

Anyway, just my two-penneth

[goneforagasper]

Good idea toots - go for different and not a "me too"

[starstruck]

Many thanks all for the posts - genuinely very grateful. It isn't putting the family home on the line - but would still hurt (really hurt) if it all went wrong.

I think I'm in the same camp as Igual and Disco Des - the TPD legislation and whether UK Gov or the TW appeal make any difference will be key. In my heart I just find it so hard to believe the legislation will be applied as literally as it currently stands - this could close the majority of shops if rigidly enforced as well as getting adverse press coverage and worrying customers unnecessarily.

Any members that have retail units out there ? You looking to sell ? Try to conform with legislation ? Or nervous whilst we wait and see... ?

Also let's not forget the implications of the big tobacco companies getting medical licences. What happens when customers realise they can get ecigs on prescription !?

Challenging times and also agree with the comments on mixing - getting a shop that makes this easy may still have a chance !?

[buggritt]

A quick word with your bank manager may save you some pondering. Opening any type of retail business is not just risky, at the moment it's reckless. The power of the internet would slaughter you in no time.
Plus you have the turbulence caused by the biggest decision this country has face in 50 years coming up, the in or out vote for the EU.

[baron]

I like the idea of a shop more geared to DIY gear to make your own juices.
Would you sell your own range of juices ?
Would you make to order a flavour a customer asks for, within reason of course ?
Would you make up coils for those who fancy a rebuildable set up, but are too scared to try to make their own, or maybe not enough time to do it ?
It appears easy on YT 'how to' videos, but if buying their first RBA (if that is what it is called) they may like the idea of having someone make them some coils+wicks until they decided to try it themselves, and of course come to you for further supplies of wire and stuff ?

Ok, I am just rambling, but looking at it from my POV..

[lisburnvapes]

Save yourself a lot of money and set up either on internet or Facebook to see how it goes first , maybe even carboot or market stall, start small and have the possibility of growing.

[starstruck]

Jun 19, 2015 7:52:23 GMT buggritt said:

A quick word with your bank manager may save you some pondering. Opening any type of retail business is not just risky, at the moment it's reckless. The power of the internet would slaughter you in no time.
Plus you have the turbulence caused by the biggest decision this country has face in 50 years coming up, the in or out vote for the EU.

Thanks buggirtt - can't disagree on retail being risky - BUT - with over 400 web retailers already out there I think trying to differentiate to attract customers will be off the scale hard. I really think that boat has sailed.

Bricks and mortar has its own risks - but the fact that new retailers are springing up all over suggests there is a market (albeit an uber competitive one !). One of the businesses I'm looking at is an existing retailer - so again, no guarantees but at least the sales numbers can be verified by an accountant meaning I understand my start position.

The bigger worries are post May next year..... Fingers crossed for TW in trying to get common sense to prevail in Europe (is this where the Mission Impossible music should kick in and images Tom Cruise doing a risky ceiling entrance on a suspension cable.....)

[igual]

Jun 19, 2015 14:28:38 GMT lisburnvapes said:

Save yourself a lot of money and set up either on internet or Facebook to see how it goes first , maybe even carboot or market stall, start small and have the possibility of growing.

This would be a good way to test the waters, end of the day you could essentially run this from home, and if you do it above board you can get some good tax breaks as well.

I aggree with toots and others that the Diy route might be a more sensible option, even if you stocked a limited range at competitive prices as you start to find your feet.
Coil making for those that cannot is a market that definitely has room in, you could buy bulk from ft and repack then make more complex coils yourself and offer multi type packs etc.

[Frogster (The Alchemist)]

Jun 20, 2015 8:01:30 GMT starstruck said:

It is late to get into the game..... it will certainly be uphill for a new startup.

I would seriously try and find the real reasons the existing retailer is selling..... It may not be the same reasons as why they may say they are selling.

Whatever you decide.... Good Luck!