Why B&M stores have to be higher priced. Should Manufacturers have minimum pricing?

[danca90]

Consumers always regulate the market. However, folks willingly paying too much today kind of shocks me. The shops selling ego kits for $70 is crazy. Why don't people google these things first?
I'm going to be out of the country for a while, and I'm excited to see how many things change over the year or so. Right now, we have 2 amazing shops that have good pricing, and a few shops that just plain suck. The folks at the expensive shops are nice enough, but their prices, and selection are plain awful. The vape shop closest to my house didn't know what my bolt was...

 

[danca90]

Let's keep politics out of the conversation.

Couldn't agree more!

 

[Fulgurant]

Consumers always regulate the market. However, folks willingly paying too much today kind of shocks me. The shops selling ego kits for $70 is crazy. Why don't people google these things first?
I'm going to be out of the country for a while, and I'm excited to see how many things change over the year or so. Right now, we have 2 amazing shops that have good pricing, and a few shops that just plain suck. The folks at the expensive shops are nice enough, but their prices, and selection are plain awful. The vape shop closest to my house didn't know what my bolt was...

Depending on what's in the kit, I'm not sure $70 is unreasonable for an ego kit. Two batts, wall and USB chargers, two clearos and a case could run you $50 to $60 online. So $70 represents a 17-40% markup on a kit that gives you pretty much everything you need to start (and continue) vaping. If that markup comes with hands-on advice/service and access to a juice-tasting bar, it's cheap.

That's not to say that there aren't B&Ms with predatory pricing schemes or terrible customer service, but I think the point of the thread is that B&Ms can easily justify a markup. The question is whether the markup's reasonable in any particular case, and the answer to that question is largely subjective.

That said, I do agree with the larger point that many posters in this thread have circled, if not stated outright: B&Ms have a disproportionate influence on how would-be vapers (would-be former smokers) regard the industry. Bad stores hurt us all, so it behooves us at the very least not to patronize those stores.

 

[DaveP]

Let the buyer beware...

We all have the browsing facilities to check out a product and see what it's really worth. Even Amazon is in the Ecig business if you search for the right terms and know what you are looking for. Even then, the prices vary and you have to compare the deals. If the B&M is too high there will be those who walk in and let them know what the competition is offering.

 

[OhmTheWatt]

Eventually as more people vape the market will level out with structured wholesale and retail pricing.

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[LEE9476]

Just thought I'd chime in. I have two B&M's in my area, one I go to fairly regularly, and it's way overpriced. In my opinion, $25 for a no name cig-alike with a charger adapter and two pre filled cartos is pushing it. I also think $11 per 10 ml of pretty awful juice is pretty unfair. The staff is also fairly uneducated when it comes to vaping gear. I asked if they had any cheap carto tanks in stock, or even just LR cartos, and the guy behind the counter started pulling out evods and ce4's. In all fairness they are a about half and half glass pipe/vape shop. Having said that, I really only go there for the conversation and cheap drip tips (I tend to break a lot). The staff are extremely friendly and genuinely try to help you out any way they can. In that aspect, they are a fantastic business and I buy something every time I stop in, even if it's just a 5 ml sampler and a few drip tips, and I don't mind paying the high juice price because they provide more than an online shop ever could in relaxing time spent vaping and talking.

The other store I go to, I got my starter kit from. $50 for two ego batteries, two ce4s, a charger, and a case (no name kit). One of the staff even took the time to explain what everything was, how it worked, recommended a flavor to start with, and filled up a ce4 in front of me to show me how it was done. $50 for all of that? Not bad at all. I had no problem paying that for the customer service and a pretty decent kit. I don't generally buy juice from them anymore because I don't like to pay $10 for 15 ml although it is pretty quality stuff, and while they do have a nice selection of gear, it's not things I would normally use. There is a price markup, but again I can understand that there's no monetary value you can place on customer service and it does cost quite a bit to run a physical business.

So while I primarily do my shopping online for the good prices and vastly better selection, I still frequent B&M's and deal with their markups because they have friendly faces to talk to. I don't think it's unfair of them to charge a little extra for items because of the services they provide, however, if it were something as extreme as a 500% markup? No thanks. I'll skip on that and take my business elsewhere because that's just plain unfair to the consumer, even if they are uneducated in the mater. There has to be a balance between being fair and still having a successful and profitable business

 

[WattWick]

There are many ways of running a B&M store. Some justify their higher pricing. Some just want to cash in on a booming market. Some have employees that know what they're talking about. Some are run by people who just want a piece of the pie. Some go about it in a smart way. Some want me to pay a whole lot for the boutique feeling in an expensive store location.

I don't mind paying a bit more for the ability to go pick up something then and there. I do mind paying more for someone trying to make a Protank "boutique".

Thoughts based on other kinds of businesses. There are no B&M vaping stores around here. Except a small section in a local head shop... with crap knock-off Vivi Novas that go for almost $35. And crap knock-off cig-alike starter kits for ... (drumroll) ... almost $130. No thanks!

 

[Wickeddeuce]

ok going to toss my in here, i agree and disagree on a number of things...

the #1 profit for the majority of any b&m is going to be e-liquid, hands down. the price of the e-liquid should be reasonable, however it should still remain semi competitive. there are two reasons i feel this way

the first being i stand by the philosophy if its too good to be true, it probably is, if all the vendors in a local area are selling liquid at $1 a ml, and you have a vendor that shows up selling their liquid at half price, or less, reasonable pricing by most standards... (dislcaimer: this is assuming i have none of the knowledge in regards to mixing e-liquids and the cost of it) while i would want to try it, i would be skeptic of why its cheaper than everyone else, what corner did they cut, why is theirs cheaper, is it safe?

the second and lets be realistic if everyone is selling at $1 a ml and another business can sell my liquid at .75 a ml and pull their customers, and still get good sales, does it really make sense for the business to take an additional 25% cut to be reasonable? we live in a capitalist nation, lets face it, some things are just business...

some of the mark up on eGos, mods, apvs, tanks, etc is understandable, your average vaper is not going to have multiple devices, might have a couple of tanks, but in an extreme case a total of 2 set ups, 1 and a back up, maybe an additional tank or 2, so for the most part, those sales will come from new customers, not current customers...

not saying a huge mark up is ok... but a slight, yes... as far as retail suppliers go... the cost of these items wholesale is great, and this is just from my random searchings... it is not unreasonable for a 900mah battery to be close to the cost of one from an online retailer plus shipping... so say 21 for a 900mah passthrough from an online vendor with tax and shipping, it should reasonably cost 25-30 in a b&m and still be in the realm of reasonable... more than that, and that is just general greed...

i dont know that is just my opinion, i think a great feature that b&ms should have (that i plan to implement with mine) would be how to seminars hosted when the store is open, close to when the store is going to be closing... (which would be later than most stores are open) i mean what better way to get business than to teach people about say rebuilding coils... instead of watching youtube videos on it, charge 5 a person for the seminar and give them an amount so they can try and do it their, see if its worth it for them...

while this may take away business (loss customers purchases on replacement coils) if the b&m sells materials for rebuilding then... voila the b&m is more likely to have a steady customer in that aspect...

theres my thoughts on the subject, some mark up is acceptable, however it should be reasonable and competitive...

 

[OhmTheWatt]

Everyone is blaming b&m for the high juice prices. If they don't make it in house there's not much margin even at rape prices when you consider all the stock you have to sit on.

There's just too many juice makers out there. None really establish themselves above the rest. The majority of the big ones are stupid cheap. That's most likely why they are so popular.

I'm sure the fda well make hoops and the people making it in their garage will go away. Then the companies will start seeing the advantages of higher direct margins and large b&m purchase orders.

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[hazarada]

Nobody forced b&m to have physical stores, keeping those up is their choice and if you want to buy from there thats your choice.

The problem with physical stores is that they have become obsolete, for buying stuff the only things that matter are the product and its price. If you want to sell customer service then sell it as such but don't try and cheese it in with the product itself, people are becoming allergic to that.