Economics of PV vs Analogs

[zedword]

I want to accurately portray the economic benefits my customers can expect when switching to vaping. Since I work in a brick and mortar store, I want to use over-the-counter products and pricing, and assume the customer is new to vaping and not buying online yet. None of my numbers in my hypothetical assume initial investment in gear ($16.50 for one 65mm 808 battery and charger).

Let's say a pack a day habit costs $4 a day (average price based on my area)

Let's say the same smoker switching to vaping buys prefilled cartos to replace the habit, at an average of $15 for 5 cartos (based on the products my b&m sells), averaging $3 per carto.

Let's say we expect this person will vape an average of 3 cartos a day, for $9 (based on anecdotal evidence found in the stickies on ecf of 1ml or carto equalling about 6 analog cigarettes. The packaging claims 1 carto=1 pack, but you and I both know this is far from true).

Obviously the new vaper will not see savings until he/she tapers down to less than 1.5 cartos a day, or begins refilling them. This figure changes if they are switching from a name brand pack-a-day habit (which can easily average $5-$6 daily)

We sell juices at $15 for 15ml. That brings the refill price to $1 per carto, or $3 per day if still vaping 3 a day.

The other alternative would be selling them the 650mah 510s we sell for $35 each, and going straight to juice. This is a harder sell for people looking for cig-a-likes.

Are the above estimates reasonable? Online shopping will always be the cheapest alternative, but I am working with what I have. Are there any (decent) brands of cig-a-like pv and cartos or juices that can be sold over-the-counter at a more reasonable price for a reasonable profit? I want what is best for my customers; both health-wise and wallet-wise, without overwhelming them or deceiving them.

 

[stevegmu]

Become a Halo reseller/distributor. Your customers will love you for it.
Honestly, I've spent more money in the past 4 weeks than I would have in a year of smoking, so wouldn't know how to approach the topic of cost-saving. Life-saving is more like it, though.

 

[bazmonkey]

Assuming it has to be bought out of a brick-and-mortar store, then that sounds reasonable. $1/1mL of juice sounds par for the course. The batteries also, that's give or take the price after the markup.

I want what is best for my customers

I completely understand the principles of economics and that B&M stores need to produce profit somehow, but the best thing for those people would be to be informed and then pointed to a cheap online source... except then they wouldn't be your customers anymore, they'd be people you helped for free.

As a B&M store, what do *you* offer that makes the markup appropriate? Do you offer advice or help troubleshoot? Is it just "location, location, location"? This is the problem I think B&M vape stores have in the long run: once the customer is informed, what is the B&M store but a middle-man to bump up the price and provide the instant gratification of a physical purchase?

 

[stealthmayhem]

I am in the wrong business....markups like that and I would be a rich man. Speaking of which, I am doing research about a B&M store in Delaware. I have yet to find any............. *light bulb*

 

[HauntedMyst]

It seems to me in terms of value for your customers, pointing them towards long term money saving devices is the best thing you could do. If you own the store or have influence on what is sold, get more reasonable items in like inexpensive batteries paired Kanger Protanks/Vivi Novas or even clearomizers if they need cig styles. Slim style ecigs appeal to novices but many are quickly able to make the jump to something more economical. Work with local ejuice producers in your area to provide you juice at a more reasonable price than 15ml for $15. Even you know that is a rip off if you spend more than 10 minutes surfing the web.

$50 setup with 2 batts & 2 clearos (You should easily be able to put this package together.)

Monthly (my area)

Pack of cigs $4 x 30

Total = $120

2 New Clearos $20
4 x 30ml bottles of ejuice $60

Total = $80
Savings = $40

Remember, the economics are just a part of the picture. What's the value of healthier lungs? Not wheezing when they walk up the stairs? Of not stinking like an old ashtray? If your customers are just switching for economics, they aren't ready to quit smoking and price is just something they are telling themselves to keep smoking.

 

[DeeDee1234]

$1 a ml is highway robbery imo

 

[FinallyQuit]

I would pay that, I have paid more than that. I run out of juice, it's over. I go to the B&M nearby spending my time and gas, they let me sample as many flavors as I want, they have a nice atmosphere and really helpful staff. Their juice is not sub-par, nor is it "gourmet." You have to offer superb customer service if you intend to stay in competition with online vendors.

 

[zedword]

Become a Halo reseller/distributor. Your customers will love you for it.
Honestly, I've spent more money in the past 4 weeks than I would have in a year of smoking, so wouldn't know how to approach the topic of cost-saving. Life-saving is more like it, though.

Thanks for the tip.

What other major brands do wholeselling besides Inferno and Halo?