Mind is blown at Local B&M prices
- Thread starter garnerb350
- Start date
- th_trl_thread_readers 0
- Status
Maybe a little insight into B&M pricing - just from when I worked in a very niche-customer store (nothing to do with PV, just very much a niche shop. There were only three of this type shop in DFW at the time for reference)
We needed to sell $300.00 per day to break even - no profit, just pay expenses like rent, electric, us staff. Any less, obviously going into the red zone. What we sold was marked up exactly 100% - we purchased it from the vendor, for example, for $8 then marked it $16. We would have two or three sales during the year and went gangbusters on those days but didn't have crazy business like that day in and day out. Some items we never changed the prices on even when the cost from our vendors went up because these items were the bare necessities for this particular hobby and my friends (the owners) didn't feel right about pushing that one up for our customers. Actually were breaking dead even on that particular item when we closed (they retired.)
So anyway, if the ramble makes any sense re-markup, price gouging is obviously the pits and beneath contempt but if the store wants to stay in business unless it's doing WalMart volume they have to pay the bills. And then hopefully a bit of profit to live on.
There's my probably less than worth it 2 cents.
We needed to sell $300.00 per day to break even - no profit, just pay expenses like rent, electric, us staff. Any less, obviously going into the red zone. What we sold was marked up exactly 100% - we purchased it from the vendor, for example, for $8 then marked it $16. We would have two or three sales during the year and went gangbusters on those days but didn't have crazy business like that day in and day out. Some items we never changed the prices on even when the cost from our vendors went up because these items were the bare necessities for this particular hobby and my friends (the owners) didn't feel right about pushing that one up for our customers. Actually were breaking dead even on that particular item when we closed (they retired.)
So anyway, if the ramble makes any sense re-markup, price gouging is obviously the pits and beneath contempt but if the store wants to stay in business unless it's doing WalMart volume they have to pay the bills. And then hopefully a bit of profit to live on.
There's my probably less than worth it 2 cents.
I cannot for the life of me understand why you'd have a brick and mortar without also having an online sales component...
we have two of these shops now in new orleans, and i really wont go to either one because of the high prices...i mean why bother? i can have vape stuff sent to my house
i liked one of these stores pages on facebook and i saw him say "come in today we have the zmax" and so i asked him what the price was and he said "come in and check it out" to which i replied "not likely"
why couldnt you do both? the online stuff would help you keep prices low, the the b&m would get you people wanting to try it out or who are new vapers
we have two of these shops now in new orleans, and i really wont go to either one because of the high prices...i mean why bother? i can have vape stuff sent to my house
i liked one of these stores pages on facebook and i saw him say "come in today we have the zmax" and so i asked him what the price was and he said "come in and check it out" to which i replied "not likely"
why couldnt you do both? the online stuff would help you keep prices low, the the b&m would get you people wanting to try it out or who are new vapers
Well, we did have a website and did a fairly steady business online, but still if you are keeping the shop open you need X-amount of money. Online sales you still have to pay the credit card/Paypal fees, staff to take care of orders, hosting fees for the site, blah-blah-blah
Some online only shops selling (and still in business) the same items were selling 'em for the same price, a few marked everything a flat 10% or so discount. But this is a very little hobby area so the customer base wasn't huge by any means. And we closed up when the owners retired 6 years ago - we all know how the interwebs have changed shopping even in that relatively short amount of time. Just passing on what little I learned about $$-in/$$-out in a small retail business fwiw.
I just went to my first B&M yesterday that opened up a half mile from my house. I bought 15ml of juice for $15. I was happy to support the guy. Would I do it all the time, no. I did it because I wanted to establish a relationship with him and his wife and support a local business. They were very nice, spent a half hour talking with me and showing me their shop and wares. They do rebuildables, repairs and said they would carbon skin my vamo for only $10. It was an enjoyable experience and I understand they have overhead to pay. It's nice to know that if I immediately need something, I can have it in 10 minutes.
Right now Vaping is a 'hot' commodity and, like all 'new' things, has a premium being put on it by most B&M outlets... Some are run by vapers; some by business people looking for an opportunity to make bucks and 'those' people will charge whatever the traffic will bear... Like with most of us, I think, we may have gotten burned on the initial kit, but soon learned to do a little research and try to get the most bang for our bucks... Thank goodness for ECF -- it's the first thing I tell folk who show an interest in Vaping... Then I'll try to steer them to a decent local vendor and/or reputable online vendors at their preference...
Time is money, and so is convenience. I could order $25 worth of stuff from an online retailer and save about $5-$10 on the same stuff sold at my local B&M. But in order to realize those savings, I have to pay shipping charges and wait for 2-5 days (much longer if I'm ordering from overseas) before my order arrives. I also face the risk of one or more of the items I ordered not being what I wanted, not working or damaged during shipping. For example, a recent order online--shipped in a padded mailer envelope as USPS First Class--included an eGo battery that arrived almost fully charged and in "ON" mode. That is extremely dangerous.
I have two local B&M stores in my area. I can go into either and get exactly what I want. Both have a DOA return warranty. Almost all reasonable B&M joints have a "try before you buy" policy that lets you sample juices in the same type of equipment that you're using. If they're smart, customer service is at least good and at least somewhat knowledgeable about the products in their store. I leave that store with exactly what I wanted and I can use it that same day.
Last week, as one of my last throwaway clearomizers was dying, I went to one of my local B&M's for a replacement. The young man at the counter explained that while they sold toss-out clearo's for $6.00, they had EVOD style tanks at $11.00 at their other store, 30 miles away. Instead of me driving over there, he called over and had someone bring a handful of EVOD's to the store closest to me. For $11.00 plus tax and no shipping, I had a better tank and they threw in a coil replacement at NEC.
That's worth something to me. I'm not sure what kind of premium I'd be willing to pay for it, but at least what I do spend lets a young man keep his job and a local entrepreneur maintain his business.
And, as always, the business of America is business.
I have two local B&M stores in my area. I can go into either and get exactly what I want. Both have a DOA return warranty. Almost all reasonable B&M joints have a "try before you buy" policy that lets you sample juices in the same type of equipment that you're using. If they're smart, customer service is at least good and at least somewhat knowledgeable about the products in their store. I leave that store with exactly what I wanted and I can use it that same day.
Last week, as one of my last throwaway clearomizers was dying, I went to one of my local B&M's for a replacement. The young man at the counter explained that while they sold toss-out clearo's for $6.00, they had EVOD style tanks at $11.00 at their other store, 30 miles away. Instead of me driving over there, he called over and had someone bring a handful of EVOD's to the store closest to me. For $11.00 plus tax and no shipping, I had a better tank and they threw in a coil replacement at NEC.
That's worth something to me. I'm not sure what kind of premium I'd be willing to pay for it, but at least what I do spend lets a young man keep his job and a local entrepreneur maintain his business.
And, as always, the business of America is business.
I don't have any in town but do have a couple at a larger city relatively near by. I stopped at a couple last time I was there and had a similar experience. Off brand generic Ego style 650mah batteries for $20, EVODs for $10, and juice for close to $1/ml. I'm certainly willing to pay more to shop local but not 50% more.
Your common sense wouldn't last long in a business. 100% markup is not that much on small items.
Your 16.66% markup would have you folding the week after you opened. Unless you took the advice of having 3 years worth of money saved, in which case you'd close after 3 years and lose all your money unless you wised up before trying to make a living off $1 profit on a $6 investment.
What you don't seem to realize is that B&M got a business deal. They didn't pay that same price you did and then mark it up, they probably paid enough that they could make the 100% and barely be over what you paid going direct.
So odds are they are gouging, just worse than you think.
What gets me about all this is these businesses who gouge will be the first types who go on the news to call for internet taxes and act like it's unfair competition. It's their bad business practices that are what's hurting their business. If they can't afford to pay the rent (and retail rent is nuts around here) they need to find a different area and advertise until word of mouth gets around.
Your 16.66% markup would have you folding the week after you opened. Unless you took the advice of having 3 years worth of money saved, in which case you'd close after 3 years and lose all your money unless you wised up before trying to make a living off $1 profit on a $6 investment.
What you don't seem to realize is that B&M got a business deal. They didn't pay that same price you did and then mark it up, they probably paid enough that they could make the 100% and barely be over what you paid going direct.
So odds are they are gouging, just worse than you think.
What gets me about all this is these businesses who gouge will be the first types who go on the news to call for internet taxes and act like it's unfair competition. It's their bad business practices that are what's hurting their business. If they can't afford to pay the rent (and retail rent is nuts around here) they need to find a different area and advertise until word of mouth gets around.
If I order 3 bottles Johnson Creek online, i pay $17.50 for 30 ml + NO tax + NO shipping. I'm paying RETAIL prices from JC!! My local B&M has 15 ml JC for $14.95 + tax. Holy Cow man!! That's $17.50 vs $32.00. I asked if they had in the back a certain flavor that I did not see on the shelf. I was told "No. " But that they would call their distributor & could have it for me next day. So if there are layers of distributor & retail, the additional costs are added & added. Yikes!! That guy needs my help!!!
That's a $15 difference. If your local B&M is selling JC juice in 15ml bottles for $15, then I'd call that a good deal based on convenience and time. JC is just about the highest quality juice out there and if the place lets you try it before you buy it, then all the better. You get high quality product, you get same-day convenience and you can rest assured that the flavor consistency is almost always going to be there. You also don't have to worry about those JC glass bottles being broken during shipping.
What's that worth? Some might say $15 is too much. Others, maybe not.
I come from a family (parents/spouse/children) where everyone is self-employed. I started to make several responses to this thread and realized that there's no way I can do it without people feeling insulted and/or .......
All I'll say is that people need to have some practical business experience before deciding whether a particular business model is fair/profitable or not.
All I'll say is that people need to have some practical business experience before deciding whether a particular business model is fair/profitable or not.
This is how B&Ms will stay in business without ripping off the uninformed. They can't compete with online vendors price wise so they have to blow 'em away in customer service and,of course have the touchy feely options. I can't find the review now, but for the local I was praising, one customer said he had just gone in and bought a bunch of gear for a vape somebody gave him in preparation for a trip and spent all of his cig money on it. The next day his rig died and he didn't have the $ to replace it. They actually let him take a mod out of the shop on just a promise to call in a credit card payment when he got his next disability check.
If people are willing to pay the prices then they have a working business model. With a little research you can buy a lot of it for 1/3 of the price if you are willing to be inconvenienced by the shipping time.
The B&M prices are still cheaper than smoking so those who don't research or want the inconvenience may still be happy to pay the prices.
The B&M prices are still cheaper than smoking so those who don't research or want the inconvenience may still be happy to pay the prices.
I'm self employed, too. While I don't do retail, I understand what it takes to make clients happy while also charging a reasonable rate for my time that lets me put food on the table, clothes on the babies' backs and a roof over their darling little heads. I don't see a problem with any establishment charging prices that the market will bear. If you're in business long enough, you learn soon enough what the market clearing price is.
The business of American is Business!
If this forum allowed it, I would double-like this post. Once for the content and once for the awesome sig line.
Ok IBCR. You're right. I submit. And the owners are REALLY nice folks too.
Cowdog rolls on back & surrenders.
I went to a local b&m and was very unimpressed. I didn't mind the prices, I come from a family business background so I have been in the situation of trying to compete in today's market. The thing that disapointed me was the extreme lack of customer service. The first thing I noticed was a sign that said they no longer permit tasting of their e-juices because of theft. As a new vapor being able to go a b&m and taste different juices was the reason I theoretically didn't mind paying the higher prices!
As for mark up the standard mark up in my families business (florist) was 3 or 3.5 times. But this case we had to pay for more than te product itself and utilities but also designers who know their stuff.
Sorry for the ramble, interesting topic!
I just wish I could check out in person some b&m stores in Cal.
As for mark up the standard mark up in my families business (florist) was 3 or 3.5 times. But this case we had to pay for more than te product itself and utilities but also designers who know their stuff.
Sorry for the ramble, interesting topic!
I just wish I could check out in person some b&m stores in Cal.
- Status
Similar threads
- Locked
