Monthly average revenue for your shop


#1

There seem to be a large scale of different monthly revenue per shop. I hear some do just a few hundred per day while I also have heard shops that does 2k per day and 4k per day.
Are shops still doing this much on daily?
We’ve seen revenue and transaction count has been dropping while most vapers are buying online.
That also brings another question, what percentage of vapers are buying hardware online and percentage are buying juice online.
All and all, we know online sales is killing brick and mortars. Some may not agree with me but I do think online sales should be banned while you can’t buy conventional tobacco online.


#2

Never really thought about that point of view. While I am 100% against governmental overreach and feel it’s against our constitutional rights, I do agree that if we are labeled as a tobacco product then online sales should be prohibited. I’d much rather not be labeled as a tobacco product as we all know we aren’t though. We set up shop in a small town to help the local community so they didn’t have to drive so far away to have access to vape supplies so we sure don’t see anything near 2k daily. 400 to 600 a day is what we normally see. As long as we can pay the bills and help smokers switch I’m happy and don’t need the 2k a day mark :wink:


#3

That is awesome that your goal is to help the local community to get on vape, I really respect that. However, it is still a business and profit has to be made to help support the employees to have a job.
I’ve travel different parts of the country, I’ve come across a large sum of people buying online because there’s no close by shops, but most importantly online price is almost 50% of what a brick mortar’s price. Very unfortunate.


#4

There is no “normal” but $30K monthly revenue has been our benchmark since we started in 2013. Even today I know many shops doing $100K mo. revenue.

No question, online is a huge draw, but good service will keep customers returning.

Most hardware IMHO is still sold in person, whereas liquids, online.


#5

Do you have an online shop?


#6

HI Jesse,
we have 2 retail stores, online, and distribution.


#7

So do you price differently online vs in-store?


#8

MSRP are the same for etail and retail since our customers know that’s our website. We had created a second site for lower prices but online prices are getting too low to try to compete and continue. Online prices are generally dollars above cost which is the main reason why customers rather shop online and have been killing all vape retailers.


#9

Can you give me an example of a website that is cutting prices so low? I’d like to research that and see if I can reverse-engineer what they are doing.


#10

I think vape.deals and vaporjoes says it all.
any other vape dedicated sites we all know also only marks up $10-$15 over cost, while brick n mortar has to mark up 100% margin to survive. I’m the importer and the distributor so the costs I eval at are lower than the cost of any retailers’ costs.
The government has to ban online sales in order to save the brick n mortars.


#11

That’s a bold statement. Don’t you think that would hurt juice discovery?


#12

I don’t think it is, government does not allow tobacco sales online. Since vape is put into tobacco category now, shouldn’t it be banned as well for etail? This will help save the industry as a whole and the brick n mortars. New juice can be marketed still, but just not allowed to sell as etail sites where it is hurting the brick n mortars.


#13

What about all the eCommerce only vape stores? Are they going to be SOL?


#14

Don’t get me wrong, I don’t wish online etailers to shut down, the problem the industry is seeing is, they’re marking up by dollars above cost and killing the physical stores. What I brought up is very valid, if gov’t put vape in tobacco category then it shouldn’t be sold online as well.
A very similar analogy is happening in various industries for years. Importers or manufactures stopped selling to online sellers or companies that focuses on selling on ebay and amazon, it ruins the the price and longevity of the product.


#15

I certainly see how that would help shops and protect prices, and I definitely support banning them from Amazon, but I wouldn’t be in favor of more government regs. The slope is too slippery…

What is the solution then? All I know is that Vaping came up from the underground as a grass roots industry. There may be a way to squash out the unfair players as part of a coordinated effort from the community. I have no idea what that looks like, I just feel it in my heart. Vapreneurs will find a way…


#16

I came from 20 years of a much bigger international industry before vape. Problem needs to be fixed starting from the top, which is the manufacturers of juice and hardware. They’re the one to control the prices and whom the product can be distributed to. I work with alot of the owners of juice makers and hardware makers, unfortunately they’re only looking at how much they can push out and their own profitability, not the stability and longevity of the industry. Products should be distributed through channels and not direct to retailers and online only companies. Problem is created at the etailer level, so that’s must be fixed. I don’t support more regs, but i do support the safety side from day 1 when no one supported it. I also do support that etail should be banned only because analog tobacco is banned online, this will definitely help control the pricing as well as non lab produced juice.
These are my opinions in my experience of vape industry for 5 years and 20 years in manufacturing, distribution, branding. I wonder what other shop owners feel.


#17

100% agree that the “bathtub” brands need to go, and regulation is the way forward. I can also see your point on the etailers.


#18

200 to 300 is our average a day here. We are in a small town where most people don’t have much to spend. We have found that most of our sales are through Juice, hardware is mostly bought on-line. I get them started with a great starter kit and when they are ready to move up they buy on-line. But we keep them as a regular customer for juice. Some use us as a showroom, come in check out the one they like and a week later come in with a new device. Juice they can come in and try new flavors & brands, then they know what they are getting.
In the current environment the B&M is doomed.
If we marked up 100% I would be typing this from home and not the store.


#19

I started online in 2012 and also help create some products. Between my website and my retail stores I used to rake in 100K in a month. Now we are down to 20K for the entire business. Buts online is not the real killer, arguably this started as an online industry to begin with. The real killer in itself is that people are smoking. The biggest competitor has been cigarettes, the hype and newness and intrigue of vape has worn off. Add to that the battery explosion media and Diacytl and the down hill slide is more like a cliff. The products are weird and not compatible with the lifestyle of normal working adults. The industry alienates its customer base. There is something called churn and attrition and the vape industry has done a poor job at maintaining members and getting new members. A great example is a new gym opening in a small city their first year will be amazing, but over time everyone who got a membership has quit and there is nobody left interested in joining. Vape will never go away, but its will be a much smaller niche resembling more of a hookah feel than a big tobacco alternative. Unless the FDA completely admits it prolongs life or some other change occurs.


#20

I disagree that it will fall the way of the Hookah. hookah have much more of a barrier to usage as they are not portable. I would like to understand what scares people away from vaping though.