I have to reply as an owner of a retail business and after watching several threads about pricing. Kiosk stores vs. online stores etc. I know everyone wants the best price but many don't realize the cost of doing business. If you want to go to a kiosk store you will pay more, their costs are higher. Rent, employees,
insurance, payroll taxes, sales tax, bookkeeping costs, etc eat at profit really quickly. Internet sites can sell for less because there is less overhead right? Until the demand gets so large that you have to rent space, hire employees which like to get a paycheck, insurance, payroll taxes, bookeeping costs, etc. Then there is China. Well they make the things and probably have a cost of goods around 4-5 dollars and sell them to us for 30-40 plus shipping. Now that is making some money.Let's take Puresmoker as a hypothetical example since this thread is about Puresmoker.This is not real numbers because I don't know Steve and he certainly hasn't shared any information with me nor should he, but I can see how his life is going right now as is many others that are trying to start up legitimate small businesses.
He finds a product, probably by luck that really fills a niche in a completely virgin market and researches how to buy and sell at a profit. He sets up a website and scrapes together some money to buy product to sell. Well the kiosks are selling these things @ 150.00 so I can sell them and make a nice profit @ 49.95
IF I buy enough in bulk. I mean they do come with 5 cartridges that should be 5 packs of cigs right? Well we all know that is wrong so now you have to replace the ecigs you just sold, and have to back that inventory up with more carts so that your customers have something to vape in those new ecigs they just bought from you. Order comes in and all of a sudden you sell out in a few days of all your inventory so you need to replace what you sold, and add more inventory with the profits so that you have enough to satisfy the demand. Where is the money to buy groceries, pay a mortgage, utilities? This cycle keeps going and you now have to add to your inventory extra atomizers, batteries, juice to refill all those carts you just sold, demand is going up as more and more people want your product. This just cycles over and over again with no real end in site, Where is the money to buy groceries, pay a mortgage, utilities? Wow now not only do you have to supply for the newcomers, you need supplies for those that want backups, hoard juice because you are afraid the FDA will ban it, your business is getting too large to handle so you need some employees to help you provide the service everyone has been use to. Where is the money to buy groceries, pay a mortgage, utilities and provide for your family? This cycle keeps continuing over and over again and grows exponentially so that everything you make has to go back into inventory to meet the demand. Where is the money to buy groceries, pay a mortgage, utilities and provide for your family?
Now we need testing done. Who should pay for that? Suppliers should since they are the ones making all this fabulous money right?
The bottom line of my post and sorry for the length is that if any of the people that complain about prices, availability and increases think that Puresmoker or any other supplier is sitting in their living room making money hand over fist while filling a few orders kept in their basement, think again. Many of the suppliers are caught in this cycle of profit being returned to inventory and walking a fine line between taking money out of the company for personal use and having enough product to meet the demands and all the while praying that the government doesnt ban the sale of Ecigs and related items so that all this hard work and sacrifice doesnt end up sitting in the warehouse you were forced to rent and cant even be sold legally.
Where is the money to pay a mortgage, utilities, car payments, groceries, and provide for your family????