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Brick and Mortar?
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bcfos Offline
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Post: #1
Brick and Mortar?
I am new to forums in general but have been vaping since 2012 to kick a 20 year awful habit of analogs. In 2013 I started selling on ebay (yeah I know bad choice since so many blockheads there) but managed to do 3472 transactions with 100% good feedback. This has allowed me to save enough to venture out and open my own shop. My goal is always satisfying the customer. Shops in my area seem to be in it to make maximum profits and that is not my goal at all. I know what my supplier charges and 90% mark up is just highway robbery to me. Sure overhead has to be met but come on.. $60 for a Kanger Subtank?? I can make good profits selling them for much less and still help the vape community.

My only plan I am kind of on the fence on is also having a dedicated website for the shop. I know very little about this side of the business since I was on the ebay platform. Is it worth it?

Thus far I have found a location and prepaid a years lease (since most commercial building holders seem wary of the industry) and already have great suppliers for kits and mods. Just now starting to get in with e-juice wholesalers and one who will actually label using my store name, logo, and number for a lower end introductory line. Build out permits are applied for so the only hold up is the city approving the build out plans. One approved I plan on doing some radio and tv marketing since I budgeted that into start up costs.

So fellow members of the community. Any ideas or input would be greatly appreciated. especially concerning the web site deal.
02-03-2015 04:37 AM
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Whiskey Offline
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Post: #2
RE: Brick and Mortar?
Doing a little internet searching and homework with the legalities and talking with a web design person may be helpful, also maybe seeing how the B&M does before jumping right into online sales. I have seen a few get in above their heads with order volumes and not being able to handle high quantity orders, only to have that issue bring the entire business down for not being able to keep up with order fulfillment . I would say one step at a time and build your name strong then branch out.
Welcome to TVF, I hope you become successfulSmile
02-03-2015 11:50 AM
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BOB (03-02-2015)
Robjenko Offline
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Post: #3
RE: Brick and Mortar?
B&M first establish yourself and the business then look at reinvesting your net profit into a website Idea Welcome to TVF Good

Vaping Saves Lives. To vape is to advocate..
02-03-2015 12:39 PM
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BOB (03-02-2015)
XtremeModder Offline
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RE: Brick and Mortar?
(02-03-2015 04:37 AM) bcfos Wrote:  I am new to forums in general but have been vaping since 2012 to kick a 20 year awful habit of analogs. In 2013 I started selling on ebay (yeah I know bad choice since so many blockheads there) but managed to do 3472 transactions with 100% good feedback. This has allowed me to save enough to venture out and open my own shop. My goal is always satisfying the customer. Shops in my area seem to be in it to make maximum profits and that is not my goal at all. I know what my supplier charges and 90% mark up is just highway robbery to me. Sure overhead has to be met but come on.. $60 for a Kanger Subtank?? I can make good profits selling them for much less and still help the vape community.

My only plan I am kind of on the fence on is also having a dedicated website for the shop. I know very little about this side of the business since I was on the ebay platform. Is it worth it?

Thus far I have found a location and prepaid a years lease (since most commercial building holders seem wary of the industry) and already have great suppliers for kits and mods. Just now starting to get in with e-juice wholesalers and one who will actually label using my store name, logo, and number for a lower end introductory line. Build out permits are applied for so the only hold up is the city approving the build out plans. One approved I plan on doing some radio and tv marketing since I budgeted that into start up costs.

So fellow members of the community. Any ideas or input would be greatly appreciated. especially concerning the web site deal.

I sent you a private message, I suggest you give it a quick read and get back to me. As I may be of help to you
02-03-2015 01:03 PM
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Spasmod Offline
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RE: Brick and Mortar?
Welcome to TVF bcfos! While I can't really offer you any specific advice, it's good to see that you're in a position to take the business to the next level.

Hopefully Brad (18sixfifty) will be along to offer some pertinent advice since he used to be a big player in the industry and has plenty of experience.

Good luck with the venture Good
02-03-2015 01:48 PM
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madecov Offline
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RE: Brick and Mortar?
I am opening my second B&M very soon.
There is more to it than you think. Air Freight Import duties, lack of warranty support if you do direct import are all a part of doing business especially if you plan on retaining customers. I do both direct import and use wholesale suppliers in the USA at usually higher prices.  The Insurance requirements that are mandated in my lease are incredibly high. Then there are state and local fees for various licenses. Pretty soon $60.00 for a subtank doesn't seem to be all that cost effective.

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03-03-2015 05:03 AM
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bcfos Offline
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RE: Brick and Mortar?
(03-03-2015 05:03 AM)madecov Wrote:  I am opening my second B&M very soon.
There is more to it than you think. Air Freight Import duties, lack of warranty support if you do direct import are all a part of doing business especially if you plan on retaining customers. I do both direct import and use wholesale suppliers in the USA at usually higher prices.  The Insurance requirements that are mandated in my lease are incredibly high. Then there are state and local fees for various licenses. Pretty soon $60.00 for a subtank doesn't seem to be all that cost effective.

Thankfully the city has no more than the basic $200 for a business license and 9% total sales tax (4% state, 3% county, and 2% city) and they have been awesome with the license process. They just take their sweet time with the COO.. Scratch_one-s_head

And I have been direct importing since I started. It takes some homework but I have been very happy with my current vendor line. They even allow me to have them ship to me on my own Fed Ex account so I avoid the old vendor mark up on shipping. And if you avoid Paypal you avoid getting charged fees for that also. I still hate paying duties but no way around it. 

Thankfully the commercial real estate company that owns the building was only worried about ability to pay because it is such a new market for them. That was solved by plunking down a years lease payment up front. Insurance is just your basic business liability for product and general liability with loss and damage coverage and it wasn't bad at all.  

And thanks to everyone for your input. I do appreciate it very much. 
06-03-2015 07:27 AM
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