The market for e-cigarettes is massive. According to Research and Markets, it can grow up to $44 billion by 2023. The compound annual growth during the forecast period can reach 22%.
Driving the growth are the increasing health concerns over smoking, more options for e-cigarettes, higher disposable income, and preference for ashless vaping. If you ride with the trend, then it makes sense to consider opening an e-cig shop or franchise in states like New York. Hold a minute, though. It’s not as simple as you think. Competition is stiff, and you are still subject to regulations.
Make sure you’re ready for your new business with these questions:
How do you begin a vape shop?
You have two primary options: a DIY shop or an e-cig franchise. Between the two, the latter provides more benefits, especially if you choose the right brand. With a franchise, you can save yourself from a lot of headaches. The company can already provide the supplies you need. Since you receive the products straight from the source, you skip the middleman and save money.
In the process, you can offer your goods for a more competitive or even lower price. It improves your profit margin and increases your potential number of customers.
Many businesses fail not only because they lack financing but also because they don’t receive enough help. A franchise can give you access to different types of support. These can include marketing, inventory management, technology, and training.
The franchisor can also help you select the right spot to open your shop. It can already give you a good head-start as far as capturing a market is concerned.
Do you need to register before you can sell e-cigarettes in New York?
Yes, you do. All e-cig stores should register with DOHMH (Department of Health and Mental Hygiene). You need to do it only once, and there’s no charge for doing it.
But you need to remember a couple of criteria. First, an e-cig shop can carry other products, but they should only be incidentals. Their sales should never make up 50% or more of the total revenues of the store. You cannot sell an e-cigarette if you are a food establishment.
To whom can you sell the e-cigarettes?
According to the regulations, you cannot sell your products to people below 18 years old. You also cannot provide a self-service display for liquid nicotine or e-cigarettes anywhere. You can do so inside your establishment and in adult-only areas.
You cannot sell or offer your products in areas designated as smoke-free areas. These can include schools, parks, hospitals, and mass transit stations. However, you may distribute them to private clubs and bars, as well as other private establishments whose majority of employees are at least 18 years old. When you need more information, you can contact your local business registration office or the consumers’ affair of the state. Don’t be afraid to ask more questions if it means helping you make logical decisions for your soon-to-open vape shop.