Vape shops, or electronic cigarette stores as they were once known, are opening up all over the country. The number of vape shops has grown by a staggering 200 percent over the past few years. And that number is expected to grow even more.
You may be looking into opening up your vape shop because of the growing demand for vaping. But before you run out and buy your supplies, do some research on what it will cost you to open up a vape shop.
If you are looking to open up your own vape shop, expect to pay an average of $32,000. A vape store can be started for as little as $15,000 and cost as much as $65,000.
The Costs of Your Vape Shop
If you’re looking into opening up your own vape shop, here are some things that you need to know before you get started.
The first thing you’re going to need is the perfect location for your new business. It’s no good to open up a vape shop if it’s in an off-the-beaten-path area or in a part of the city that doesn’t get much foot traffic.
Once you’ve found the right location, give yourself some time to save up for all of your startup costs. You’ll need money for rent, security deposits, and any other fees you need to pay upfront before opening your doors.
You’ll also need money for equipment, inventory, and any other supplies you may need. And don’t forget about the competition – they’re also looking into what it takes to open up a vape shop.
The vaping industry is still growing every day, but that doesn’t mean you won’t have competition trying to take some of your customers away from you! If you’re not paying attention, your competition probably is.
Let’s break down the cost:
The location you choose can make or break your vaping business. Before you sign a lease on any location, think about how much foot traffic the area gets.
You don’t want to open up a vape shop in an area of town that doesn’t get many people passing by. You want to make sure that someone interested in vaping or wants an alternative to smoking sees your store on the way to work or on their lunch break.
If you can’t find a storefront that has already been used as a vape shop, try looking for a space used for retail to reduce the cost of renovations.
Expect to pay an average of $10-$40 a square foot for rent, depending on the location and city you choose. Which will make your monthly rent costs anywhere from $2,000-$5,000 a month.
It may take a while to find the right employees for your vape shop.
Depending on where you live, a vape shop can be a controversial business idea.
There are plenty of people who support vaping and the vape industry, but there are just as many people against it.
This is important to think about when hiring someone for your vape shop.
Vaping employees should be able to relate to customers and feel comfortable talking about vaping with anyone who walks in the door.
Expect to pay anywhere from $12-20/hour, depending on what kind of position you’re trying to fill.
It will be essential to offer your employees benefits, including health care, vacation time, and sick days.
Health insurance will cost around $300-500/month per employee.
It is also good to have worker compensation insurance if something happens while an employee is on the job.
That will cost around $100-300/month, depending on how many employees you have and their position.
As mentioned before, you may need to do some renovations to your new store. Depending on the condition of the space you choose, this could be very pricey.
You’ll need to get new shelves for your inventory and room for any display cases or other equipment you may want to use.
There are lots of different ways that vape shops display their products for sale. Depending on the size of your store, you may want to go with tables and racks like at a grocery store, or you can choose enclosed shelving if you’re looking for something more minimalistic.
Either way, you’ll need to invest in some shelving to display your e-juices, mods, supplies, etc.
Shelving will cost anywhere from $250 to $2,000, depending on what type of shelving you need.
Display cases can cost anywhere from $300 to $1,000 or more, depending on the type of case you want.
And don’t forget about security! You’ll want to make sure to properly secure your building and get a theft-deterrent system such as cameras and an alarm system. A security system will cost about $3000 to keep your investments secure.
More than likely, you will want to paint the inside of the store to make it look fresh and new. You can expect to pay around $400 for paint supplies if you decide to paint yourself.
Hiring a professional painter will cost anywhere from $1,000 to $5,000, depending on the size of your space is.
If you are content with the location’s flooring, this is not an expense you need to consider. Most business owners opt to buy flooring because it adds to the overall look. Flooring can cost around $1,000 for a basic installation.
You will want to have a counter with registers, so your patrons have somewhere to checkout. A checkout counter will cost anywhere from $300 to $2,000.
You’ll need to have a point of sale system installed so you can process payments from your customers and track inventory. A sound POS system will cost about $100 a month plus an initial startup fee of around $300-$500.
Your business will need a name and a sign for your front door and window, so make sure you search for a reputable sign maker and create an attractive design. A store sign can cost between $500-$1,500 depending on the size and what materials you want it made out of.
You’ll need to make sure your store is fully stocked with all the best e-liquids, mods, atomizers, batteries, etc.
Wholesale prices will save you around 15-40% on your inventory. This is great for someone just starting out and looking to get a good deal.
You can expect to spend around $1,500 for a good starter kit on e-liquids.
The initial cost of buying wholesale vape supplies can average anywhere from $5,000-$15,000, depending on the size and scale of your business.
E-liquids will typically cost around $3-$25 per bottle for vape juice, depending on your purchase size and quantity.
You’ll want to keep an eye out for any discounts you might find on your supplies. You can save up to 30% or more just by waiting for specials and buying in bulk!
Atomizers and batteries can average anywhere from $4 to $15 per pack of 3.
Reusable vape pens average anywhere from $7 to $45, depending on brand and features.
Disposable vape pens average anywhere from $2 to $12, depending on quantity and brand.
Charging Cables will cost around $5, though this can vary based on design and type.
You’ll need things such as paper towels, toilet paper, cleaning supplies, etc., which you can purchase in bulk at a discount when buying for your business.
You can expect to spend around $300 initially on your day-to-day supplies.
You will need to have the correct insurance if you want to open up a vape shop. You can expect basic insurance costs to be around $1,000 for business liability.
Since this will be a physical location, it is good to have personal liability insurance, which will cost about $200-$300 annually.
Marketing and Advertising
You can expect to spend around $150 on flyers and other types of branded marketing materials.
Depending on the size of your customer base, radio ads may be worth it. If you think radio advertising will get your business significant exposure, try spending $50-$150 per ad spot.
Internet advertising services such as Facebook, Twitter, Google Adwords, etc., can cost around $20-$30 per day.
Social media management services such as Hootsuite, Nearby Now, etc., will average anywhere from $10-$25 a month.
If you have the money to spend, hiring a professional marketing team to help grow your business can be well worth it and save you time!
It is crucial to budget for marketing as you will rely on the results to keep customers coming into your business. Expect to pay around $300 – $1200 per month on marketing and advertising.
It’s never a bad idea to invest in some business cards and door hangers for advertising purposes. Costs will vary, but you can expect to pay anywhere from $150-$500.
Utilities such as electricity, water, and internet will cost around $200 per month.
You can expect to make anywhere from $4,000-$30,000 per month, depending on the size and scale of your vape shop business.
You should mark up your e-liquids by 40% to start. On average, expect to make about $10 per e-liquid, with wholesale costs about $3.
Disposable pens mark up with 40% and make around $7-$9 on average per pen.
If you sell reusable vape pens, your profit margins will be higher since they initially cost more. You can mark up your vape pens by an average of 80% and make about $14 on average per pen.
Since cartridges and atomizers typically come in larger orders, you will be able to keep more of the profits for yourself. You can expect to make around $5 or more per cartridge/atomizer, depending on the quantity you purchase at a time.
The Vaping Trend
The vaping trend has been on the rise ever since vape products first hit the market. In the past couple of years, e-cigarettes have become a more socially acceptable item – something people talk about at work and share with their friends.
And as it gains popularity, more smokers are turning to vape as a way to quit smoking or at least cut back on how much they smoke.
The vaping trend is taking off, and many people have made the switch from cigarettes to only using e-cigs!
Things To Consider
When you’re considering opening your vape shop, you’ll need to know what it will cost. Not only the regular startup fees, like rent and utilities, but also how much you’ll need to spend on inventory for your customers.
Vaping devices themselves can cost anywhere from $30 to $200 or more per device, depending on the model and brand. And then there’s the e-liquid and other vaping accessories that you’ll need to purchase along with your devices.
Even though vaping is a growing trend, it can be very competitive. There are hundreds of vape shops opening up across the nation every year, and only so many customers want to try vaping (or already vape).
Before you spend a lot of money opening up a vape shop, do some research. You don’t want to be stuck with an empty storefront because your vaping business failed!
Your Vape Dream
The best way to make the most out of your dream is to start small and work your way up. You should also keep in mind that the more you invest, the bigger your return on investment (ROI) can be.
But like any business, you should try to minimize your overhead costs as much as possible. That way, you can keep more of the profits for yourself.
When you’re ready to open a vape shop, it is essential to do your research and talk with other business owners who have been in the industry.
While opening a vape shop may seem intense, you can do it successfully!