Returns: How do you e-cig suppliers make a profit?

[Adik Ted]

Do you not get chancers continually buying a new battery or atomiser ((or maybe using a friend they've convinced to buy a starter pack) and then returning an old broken one claiming that was the new one that was sent out?

OK. Sorry. I suppose it'll happen a lot more now.

 

[BradSmith]

Most people are too honest or too lazy to try and scam people. The ones that are set on being scammers will always find a way and that is part of the cost of doing business.

 

[gashin]

I've never had that happen to me yet but now I'm on the lookout

Honestly though I think most suppliers here are doing this business as a hobby or supplemental income. I'm barely making gas money but I like the fact that I can get the latest models before everyone else .

Do you not get chancers continually buying a new battery or atomiser ((or maybe using a friend they've convinced to buy a starter pack) and then returning an old broken one claiming that was the new one that was sent out?

OK. Sorry. I suppose it'll happen a lot more now.

 

[darkmatter22]

BULK ordering offers discounts and the developer sells cheap to get the product out there

 

[billo]

I am NOT a supplier, but I know you can buy 510 kits for under $20 wholesale (plus shipping.) Most US suppliers sell them for $35 and UP. Not too bad.

Juice is even more profitable. You can buy, e.g. 100mg juice RETAIL in the US and cut it by 6 with PG, which is almost free, and sell the juice for 3 to 10 times the material cost.

Of course you have to add flavoring, again almost free compared to the nicotine. This takes quite a bit of labor, of course, and any prudent person would have liability insurance, which could be your biggest cost !

A web site is very inexpensive once you get it set up.

All in all, it seems profitable. It all depends on how much business you can generate relative to the 100 or more suppliers around !

Anyway, I could be wrong, but that's my 2 cents.

 

[Blaze]

I am NOT a supplier, but I know you can buy 510 kits for under $20 wholesale (plus shipping.) Most US suppliers sell them for $35 and UP. Not too bad.

And where, pray tell, is that?

 

[candre23]

And where, pray tell, is that?

Direct from China, most likely. The thing with wholesale is that it's wholesale. To get that kind of pricing, you'd have to order probably 100 kits or more. Then you have to deal with shipping and customs, which might or might not charge a huge import fee, or seize your shipment entirely.

I've had some experience with importing goods from Asia for resale (not ecigs) and it isn't always straightforward. Believe me, the seemingly-large markups that local dealers charge are totally justified.

 

[gashin]

haha I like the above post for various reasons. But seriously the cost of shipping, taxes, forum fees, packaging material, and the fact that income isn't steady doesn't make this business ideal as a primary job. I know a lot of suppliers are doing well but I doubt many have quit their day jobs. For me it's an on and off thing because I only buy relatively small stocks at a time and don't have the exposure of the big guys.

 

[Papagoatee]

It's the same as any other business. You'll need to have capital. AFAIK, wholesale atomizers require a minimum order quantity of 1000.

If 1 atomizer cost $2 wholesale, it's already $2000. Not counting the batts, carts, chargers, packaging etc. And that's just for 1 single model.

I really wouldn't mind letting the suppliers make a profit for the convenience.

 

[BradSmith]

And where, pray tell, is that?

Wholesale Lots : Electronic Cigarette Wholesale - China E-Cigarette Wholesale - Discount electric cigaret - Cheap Mini e-cigarette - Super Cigarette - Buy E-cig From Manufacturer

100 510 kits for $1999.99. So for very slightly under $20 each. You would get 200 attys for $1,000 or 5 bucks each. 200 batteries for $1000 or five bucks each. This would also come with 100 chargers and 500 carts. free. Not bad really.

 

[martha1014]

My husband has an online business selling case knives and related products and his markup is .33%. Advertising is very expensive. If you included website including maintenance and inventory is could be very expensive. He does his own website and inventory. My son wrote his inventory program. It would even cost more if he had to stock all of his products but there is a local wholesaler he uses. He does make a profit but does not get rich. I know the well known suppliers make a good profit but they have to work at it and provide good customer service.

Those companies that make mod and sell them have to be making a good profit. Once they get set up with their equipment how much do you think it cost to make one of these. It has to be a large profit margin.

 

[cliff5550]

It's been our experience over the last 8 months that the vast majority of suppliers here work very hard on cultivating a strong and almost personal connection with their customers and that translates into honest customers who want to see them stay in business. The forum has the best business people I have ever come across.
I'd say most here would not cheat a vendor or try to take advantage of the home-business vendors. We expect them to make a profit and want them to profit.
Many throw in little extras from time to time in an order and almost all push to make fast delivery a way of doing business. Businesses in general would benefit from seeing how these vendors do business. These folks work their butts off.
Many vendors are just like us except ... they sell, we buy.

 

[epluribus_vapor]

Well put cliff5550. I sell over 90% of my products to local customers that I'm friends with, or coworkers with, or those who are friends of friends or coworkers. I make enough profit to bounce from red to black just about every order. In the end, I'm able to spread knowledge on e-cigs, and make enough to make more orders. The "personal touch" is hard to measure in cost... I've spent countless hours before work (my real job that is.. not selling e-cigs) packing orders, and corresponding with manufacturers, and then my wife takes her lunch to ship out orders, then we return after work to get on skype/yahoo/my site to answer questions, solve problems, and schedule returns for faulty products. We had a huge delay in orders thanks to the Chinese New Year, and I've basically started giving out what liquid I have left to my loyal customers because I didn't expect to be out of stock of what they wanted for 2 weeks.... If I was losing a ton of money on this, I would have to drop out but as long as it pays for itself (and maybe the week's gas money when we bounce into black), my wife and I will keep the e-cigs flowing.

 

[DC2]

Great thead topic...

I'm going to agree with this post...

It's been our experience over the last 8 months that the vast majority of suppliers here work very hard on cultivating a strong and almost personal connection with their customers and that translates into honest customers who want to see them stay in business. The forum has the best business people I have ever come across.

And as far as the original post...

Do you not get chancers continually buying a new battery or atomiser ((or maybe using a friend they've convinced to buy a starter pack) and then returning an old broken one claiming that was the new one that was sent out?

I'm going to go out on a limb and suggest that the people that frequent this forum are top notch human beings for the most part, and understand that we are ALL in this together.

Maybe I'm just being naive though, but that is the conclusion I've come to.

 

[tbl35]

I really wouldn't mind letting the suppliers make a profit for the convenience.

Amen to that. I'm paying to let them be the ones to deal with shipping times to import stuff & the possibility of things being seized and I'm happy to do it.

 

[BARENETTED]

People are either good or bad.

I think most people are good.

The bad ones will have it come flying back in their faces eventually.

Whatever the US Suppliers make, they earn it.
These businesses don't run themselves. They require a lot of time, effort and capital investment.

 

[AJMoore]

Anyone here can go out on a limb and buy wholesale, good luck. Like all the posts so far, I'm happy the vendors are here, they have all been fantastic to deal with and let's just hope and pray they make a profit or they won't be here for us.

 

[Adik Ted]

When I got my first e-cig I thought about becoming a supplier but my opening post fears put me off (I'm a bit surprised no ones thought of giving the parts a discreet serial number - I suppose it's down to cost). Anyway, I'm glad to hear you're all experiencing honesty. Almost all my dealings have been with Intellicig UK and, to a lesser extent, Absolutelyecigs in China and I've found both their customer services excellent so I wouldn't dream of being dishonest with them.

 

[Elendil]

Profit is not a dirty word.

 

[BARENETTED]

People are not in business for the fun of it.
This is their job.
When someone treats me with respect and honesty, I can only return the favor. 'Do unto others......"
I wouldn't switch my parts with older ones just to get a free item anymore than I would want a supplier to send me a used part!