Walmart Rolling Out Vapor Products In Oklahoma

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Kim B.

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Not quite sure how I feel about this.

On one hand, I can see folks who may not want to visit a vape shop to give vaping a try being more likely to buy a basic kit at Walmart. Walmart could actually end up helping mainstream vaping acceptance vis a vis the general public.

On the other hand, I can see how this could directly affect local vape shop sales, although hopefully more people who initially bought the cig a likes from Walmart would provide an increase in a local shop's business when people were ready to move on to better equipment.

But, my biggest concern would be how much more likely and quickly we'd see high taxation on vaping supplies, every state is well aware of the billions of dollars in sales taxes Walmart generates.
 
O-O-O-O-Oklahoma! Where the vape comes drifting down the plain...

Eh, I'm neutral. Wal-Mart sells so much cheap knockoff crap already that I'm sure these will be crap. I hope it doesn't turn off possible ex-smokers, but some percentage of them will no doubt find this forum and get something decent.
 

OBDave

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But, my biggest concern would be how much more likely and quickly we'd see high taxation on vaping supplies, every state is well aware of the billions of dollars in sales taxes Walmart generates.

Malwart generally generates negative tax revenues overall, after considering the deals they negotiate with local municipalities that allow them to collect sales tax but then keep it to add to their bottom line rather than pass on to government (no joke), the reduced property taxes they negotiate when bringing in their "community asset" of a store, and when paying their employees wages so low that even a lot of the full-timers rely on Section 8, food stamps, and other forms of welfare.

I can see how bringing vape product into wally world would give cause for pause as it relates to bringing it into the mainstream at a time when we're not really sure which direction public opinion is going to break on the whole vaping thing, but I don't think tax revenue plays into this debate for politico types with a firm grasp on the down-and-dirty numbers.
 

OBDave

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The bulk of Walmart products are produced in China, where most vaping devices are produced. If they inventory more than just the basic start up kits, they could compete with a lot of online vendors as well as fasttech.

Their execs are smart - if they're going to do an all-stores roll-out, they're going to go to their suppliers and demand a profitable product at or below a FT price point.

Coming from a guy who buys through FT and can accept the QC shortcomings inherent, I'm genuinely worried about how half-arsedly dangerous quality control might get if a player like Walmart gets into the game...
 

Kim B.

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Malwart generally generates negative tax revenues overall, after considering the deals they negotiate with local municipalities that allow them to collect sales tax but then keep it to add to their bottom line rather than pass on to government (no joke), the reduced property taxes they negotiate when bringing in their "community asset" of a store, and when paying their employees wages so low that even a lot of the full-timers rely on Section 8, food stamps, and other forms of welfare.

I can see how bringing vape product into wally world would give cause for pause as it relates to bringing it into the mainstream at a time when we're not really sure which direction public opinion is going to break on the whole vaping thing, but I don't think tax revenue plays into this debate for politico types with a firm grasp on the down-and-dirty numbers.


Informative, OBDave, thanks for pointing that out, but don't TIF tax breaks eventually run out, (albeit decades later) thus finally channeling tax dollars into state and local government coffers? There's also the view that since these tax dollars would never exist without the store in the first place, it eventually does generate positive tax revenue.

Correct me if I'm wrong, I in no way claim to be an expert on this.
 
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Dusif

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We have had skandi starter kits in our grocerie shops for years... But as you might know theyre the worst type of mini you can get... Vapor production is close to none and flavor is nowhere to be found... Just a sligthly sweet taste with the name tobacco/menthol or chocolate... And ofc no nic


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TheJakeBailey

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I think there are a couple of very important points being missed.

1. You don't get to be the worlds largest retailer by being stupid. The fact that they are picking up vape supplies of any kind means that they have looked into this, understand it's potential for sales, and pretty confident it won't be going anywhere in a few months. And if you think Walmart isn't in the know about these kinds of things, I would think again.

2. This takes vaping out of the "smoke shop" mentality. Any mom in America can say "maybe I'll try that" when she sees it on the shelf at Walmart. What they are selling isn't likely to be any worse than any other blister pack starter kit for sale at gas stations across America is it? It means that this has become accepted in the mainstream.

Nobody is going to go to Walmart for a Kayfun or a nemesis clone. They are never going to carry Bobas Bounty. But for a blister pack starter kit... I think it's a huge win for us in general.
 

Rickajho

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The bulk of Walmart products are produced in China, where most vaping devices are produced. If they inventory more than just the basic start up kits, they could compete with a lot of online vendors as well as fasttech.

Yeah but this is WalMart. How can they dumb this down even further to get a high markup? Secret export deal with North Korea maybe?

Regardless I see little to no impact on sales to either FT - hell any online vendor for that mater - or local shops. I'm sure if it doesn't look like a cigarette Wally won't be selling it. Anything more complex than that would require an explanation. Wally doesn't see stuff that needs to be explained.
 
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Botomline

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I think there are a couple of very important points being missed.

1. You don't get to be the worlds largest retailer by being stupid. The fact that they are picking up vape supplies of any kind means that they have looked into this, understand it's potential for sales, and pretty confident it won't be going anywhere in a few months. And if you think Walmart isn't in the know about these kinds of things, I would think again.

2. This takes vaping out of the "smoke shop" mentality. Any mom in America can say "maybe I'll try that" when she sees it on the shelf at Walmart. What they are selling isn't likely to be any worse than any other blister pack starter kit for sale at gas stations across America is it? It means that this has become accepted in the mainstream.

Nobody is going to go to Walmart for a Kayfun or a nemesis clone. They are never going to carry Bobas Bounty. But for a blister pack starter kit... I think it's a huge win for us in general.

You are spot on, the more mainstream it becomes the better it will be for all of us. They will never carry the high end items but it will preserve out ability to get those online or through specialty shops, just like every on line of product they carry. And the more exposure vaping gets in ordinary retail the less spin the opponents will be able to generate.
 

sean5340

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Malwart generally generates negative tax revenues overall, after considering the deals they negotiate with local municipalities that allow them to collect sales tax but then keep it to add to their bottom line rather than pass on to government (no joke), the reduced property taxes they negotiate when bringing in their "community asset" of a store, and when paying their employees wages so low that even a lot of the full-timers rely on Section 8, food stamps, and other forms of welfare.

I can see how bringing vape product into wally world would give cause for pause as it relates to bringing it into the mainstream at a time when we're not really sure which direction public opinion is going to break on the whole vaping thing, but I don't think tax revenue plays into this debate for politico types with a firm grasp on the down-and-dirty numbers.

My mom recently retired from Walmart. She had discounted stock, 401k and nice insurance. She made a decent living.
 

Penn

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Haus is a new line of product for Mistic. This is not a cigalike.

mistic-minute-introduce-haus-pv.jpg
 

TheJakeBailey

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Yeah but this is WalMart. How can they dumb this down even further to get a high markup? Secret export deal with North Korea maybe?

Oh, I think the markup is already built in. I have a feeling if the average vapor knew what a cheap starter kit actually costs the vendor, they would be shocked. The Walmart model of business takes it a step further because they buy in MASSIVE quantities, and get just as massive discounts for doing so. I'm not arguing that this is good for America in general. Just that Walmart will make plenty of money with absolutely no change to the product itself.
 
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