You don't have to read this, nor do you have to agree - but it is my advice to all of you who are new to retail business ownership. A bit about myself.
I am a new vaper who started a year ago. When I first got into vaping I found something that worked and didn't alter that in any way until recently when I decided to delve into the fray and figure out an upgrade for myself. This is just my personality, I find what works for me and like to stick with it.
Due to a recent move I decided to get further into the graphics side of things as personal choice, but prior that that I was the E-commerce manager for a liquidation company. We bought out businesses who were closing their doors, moving and numerous other reasons. It was a small enough company that I was in charge of many aspects of the business so I had a broad range of experience with them, prior to that I was in business management as well as having owned my own business. (I sold my business due to an overload of working hours and I wanted to spend just a little more time with my family)
Don't worry, I am not ever planning on being your competitor - I like graphic design too much!
However, that is my background, and here is my advice from what I have seen so far based both upon my background in business, and also from the standpoint of a consumer:
vaping is a new industry, and so far there are few standards in pricing among other things. Many people are finding themselves as new business owners without lots of prior experience and are competing for business making industry standards in pricing cloudy at best.
However, the standards which exist in retail business as a whole will someday apply to the vaping industry as well. There are set factors involved, cost is usually one of them. Your out of pocket expenses for the product. Usually in suppliers there are three basic tiers, high, medium and low in both price and quality. Cheap supplies are lower quality items, breaking faster, not made as well, not tasting as good due to lower quality product ingredients and so forth. Middle is inbetween the highest quality and the lowest quality, and high quality is just that, long lasting, durable, made from the best ingredients.
Your average person usually goes for the middle ground - well made but not too expensive. You will sell the most products from this tier than either of the other two, although you must stock all of them in order you don't loose a sale.
Specializing is usually for the birds - I don't recommend only selling one thing, or products on one tier only - keep a couple of cheapies on hand for those who wont buy anything else while being informative and honest about the quality they are purchasing - but don't be too pushy. There is one good fast solid rule - The more you have for sale, the more sales you will make.
Most businesses operate at 20% over cost. That is the mark-up. 20%. This will keep the bills and employees paid in most cases. Some a bit more, some a bit less, but this seems in retail to be about average. Look at all your overhead weighed against sales volume in order to determine where you personally need to be.
So why do you see discrepancy in price between retailers? Its because the more you sell, the cheaper you can buy it. You have begun buying in bulk. So right now, everyone is competing for those potential customers so that they get on top before everything in this new industry levels out. Being one of the top sellers is where you want to be when everything levels out - because by that time you will have made a name for yourself.
Your name is everything, customer service right now is everything, first impressions are everything - and so is quality. If I get a quality product for a good price with good customer service then I am more likely than not to stick with that seller for a very long time to come, so long as I stay satisfied with that service.
Find your nitch, that place where you know what you can sell for to make it while providing quality products and service. Many already know this, and they are getting to the top as we speak. For those of you who are not there yet, you need to learn who they are, what their prices are, and watch how they work - because it is them you need to compete with. Forget nearly everyone else, they are your main competitors and they are consolidating their place in the market.
Can't compete price-wise because you cannot buy the same product for the same prices? That's fine and your not alone in the world, many have been where you are and risen to the top. Sell yourself - compete with better customer service, a more personalized experience, highlight those things that will make people want to purchase from you even if it means spending a couple more dollars expand into more selling venues.
I am finding so many small vape shops without websites, without online pricing and without the ability to purchase online. In today's day that is ridiculous not to branch out on the internet. Sales generated online have the ability to double, triple, even quadruple what you are making right now. Let people shop online at your store.
Did you know how easy it is to do that? You can do it yourself for next to nothing. There are so many sites that you pay a monthly fee for an e-commerce site that give you all the tools you need to set it up yourself. All you do is add your products, choose your templates and add a few nice pictures. Most charge about 35 - 40 dollars a month for that. For you to have the ability to sell more product than you are selling right now.
Once your site is set up, you call your bank. They will come in and for about 100 dollars set your website up to accept credit card payment (by now you have already set up your shipping, as you did that while adding product to your site.) Do you know why banks do this? Because it makes them money. They take on average 2.5% of each credit card sale in order to provide you this opportunity to attract more customers and make more money.
Don't like it? It's just the cost of doing business people; add a 2.5% additional mark-up if you have to, but it is the cost of doing business and if you are going to succeed you will have to eat that one way or another.
Don't think you can handle setting up your website? Hire a graphics designer, and if you don't have much in start-up funds get one who is very good, but not yet the best of the best. Might take an extra couple days - but if they have a good name in the up and coming section then they would do the job just as well and for a bit cheaper. The best of the best can come later, just don't get suckered by someone.. ask around.
Don't get caught in the trap of selling yourself short, sell yourself. Personalization, highlight what is good about you and your company - buzz words like "Family owned and operated," "Made in America" "Quality products at quality prices", compete the best you can, but don't sell yourself short - and don't fall into the trap of thinking too highly of yourself either. You may want to someday, and if you do you will loose.
And most of all from me - good luck. I am personally excited to see all these new businesses, an entirely new industry with so much potential! It's such a wonderful thing! I hope these few thoughts I quickly jotted down are of some use to you.
All my love
PS. The customer comes first, without them, you cannot exist.
I am a new vaper who started a year ago. When I first got into vaping I found something that worked and didn't alter that in any way until recently when I decided to delve into the fray and figure out an upgrade for myself. This is just my personality, I find what works for me and like to stick with it.
Due to a recent move I decided to get further into the graphics side of things as personal choice, but prior that that I was the E-commerce manager for a liquidation company. We bought out businesses who were closing their doors, moving and numerous other reasons. It was a small enough company that I was in charge of many aspects of the business so I had a broad range of experience with them, prior to that I was in business management as well as having owned my own business. (I sold my business due to an overload of working hours and I wanted to spend just a little more time with my family)
Don't worry, I am not ever planning on being your competitor - I like graphic design too much!
However, that is my background, and here is my advice from what I have seen so far based both upon my background in business, and also from the standpoint of a consumer:vaping is a new industry, and so far there are few standards in pricing among other things. Many people are finding themselves as new business owners without lots of prior experience and are competing for business making industry standards in pricing cloudy at best.
However, the standards which exist in retail business as a whole will someday apply to the vaping industry as well. There are set factors involved, cost is usually one of them. Your out of pocket expenses for the product. Usually in suppliers there are three basic tiers, high, medium and low in both price and quality. Cheap supplies are lower quality items, breaking faster, not made as well, not tasting as good due to lower quality product ingredients and so forth. Middle is inbetween the highest quality and the lowest quality, and high quality is just that, long lasting, durable, made from the best ingredients.
Your average person usually goes for the middle ground - well made but not too expensive. You will sell the most products from this tier than either of the other two, although you must stock all of them in order you don't loose a sale.
Specializing is usually for the birds - I don't recommend only selling one thing, or products on one tier only - keep a couple of cheapies on hand for those who wont buy anything else while being informative and honest about the quality they are purchasing - but don't be too pushy. There is one good fast solid rule - The more you have for sale, the more sales you will make.
Most businesses operate at 20% over cost. That is the mark-up. 20%. This will keep the bills and employees paid in most cases. Some a bit more, some a bit less, but this seems in retail to be about average. Look at all your overhead weighed against sales volume in order to determine where you personally need to be.
So why do you see discrepancy in price between retailers? Its because the more you sell, the cheaper you can buy it. You have begun buying in bulk. So right now, everyone is competing for those potential customers so that they get on top before everything in this new industry levels out. Being one of the top sellers is where you want to be when everything levels out - because by that time you will have made a name for yourself.
Your name is everything, customer service right now is everything, first impressions are everything - and so is quality. If I get a quality product for a good price with good customer service then I am more likely than not to stick with that seller for a very long time to come, so long as I stay satisfied with that service.
Find your nitch, that place where you know what you can sell for to make it while providing quality products and service. Many already know this, and they are getting to the top as we speak. For those of you who are not there yet, you need to learn who they are, what their prices are, and watch how they work - because it is them you need to compete with. Forget nearly everyone else, they are your main competitors and they are consolidating their place in the market.
Can't compete price-wise because you cannot buy the same product for the same prices? That's fine and your not alone in the world, many have been where you are and risen to the top. Sell yourself - compete with better customer service, a more personalized experience, highlight those things that will make people want to purchase from you even if it means spending a couple more dollars expand into more selling venues.
I am finding so many small vape shops without websites, without online pricing and without the ability to purchase online. In today's day that is ridiculous not to branch out on the internet. Sales generated online have the ability to double, triple, even quadruple what you are making right now. Let people shop online at your store.
Did you know how easy it is to do that? You can do it yourself for next to nothing. There are so many sites that you pay a monthly fee for an e-commerce site that give you all the tools you need to set it up yourself. All you do is add your products, choose your templates and add a few nice pictures. Most charge about 35 - 40 dollars a month for that. For you to have the ability to sell more product than you are selling right now.
Once your site is set up, you call your bank. They will come in and for about 100 dollars set your website up to accept credit card payment (by now you have already set up your shipping, as you did that while adding product to your site.) Do you know why banks do this? Because it makes them money. They take on average 2.5% of each credit card sale in order to provide you this opportunity to attract more customers and make more money.
Don't like it? It's just the cost of doing business people; add a 2.5% additional mark-up if you have to, but it is the cost of doing business and if you are going to succeed you will have to eat that one way or another.
Don't think you can handle setting up your website? Hire a graphics designer, and if you don't have much in start-up funds get one who is very good, but not yet the best of the best. Might take an extra couple days - but if they have a good name in the up and coming section then they would do the job just as well and for a bit cheaper. The best of the best can come later, just don't get suckered by someone.. ask around.
Don't get caught in the trap of selling yourself short, sell yourself. Personalization, highlight what is good about you and your company - buzz words like "Family owned and operated," "Made in America" "Quality products at quality prices", compete the best you can, but don't sell yourself short - and don't fall into the trap of thinking too highly of yourself either. You may want to someday, and if you do you will loose.
And most of all from me - good luck. I am personally excited to see all these new businesses, an entirely new industry with so much potential! It's such a wonderful thing!
I hope these few thoughts I quickly jotted down are of some use to you. All my love
PS. The customer comes first, without them, you cannot exist.
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