How to open an ecig store with step by step instructions
The electronic cigarette industry has proven to be lucrative for many entrepreneurs. One way to get in on this industry is to open an ecig store. We have compiled a list of basic expenses that an ecig store will accrue while opening. We have also included some step by step instructions to help get you started. Please keep in mind that some of the expenses could be lower if you were able to get a good deal on display cases, signs, advertising, etc…
Estimated costs of opening an ecig store:
Rent – $500 – $3000+ (Depends on location)
Security Deposit – $500 – $1500
Display Cases – $1000 – $3000
Exterior Sign – $500 – $3000
Interior Sign – $500 – $1500
POS System – $500 – $1500
Merchant Account – $500 – $1000
Product – $1000 – $5000+
Local Business Approvals/Licensing – $0 – $300
Filing of LLC – (Optional) – $500 – $1000
Trademark Name – $500 – $2000 (Depends on the attorney)
Utilities – $100 – $300 per month
High Speed Internet & phone – $150 per month
Local Advertising Budget – $500 per month
Insurances – Inventory, Store, workman’s comp – $100 – $200 per month
Sales Tax & Tax Filings – $50-$100 per month allocated towards this so you can pay an accountant every quarter.
Payroll Company – About $20-$30 per employee per month to receive checks through payroll company.
1 Employee – $760 per week – $3040 per month
-Average employee pay for a shop of this type is $8 – $10 per hour. The shop should stay open for 60 hours during the week, and atleast 16 hours on the weekend. That is 76 hours per week for an employee to work the store. This means you would need two employees. At $10 an hour, it would cost $760 a week to keep your store employed.
Other costs you may incur:
-Some merchant companies put new merchant accounts on probation during a term in the beginning of the accounts and can hold 15-30% in sales in a reserve for sometimes up to 6 months. It would be wise to shop around to different merchant providers to ensure you are getting the best deal, with the lowest reserve.
Electronic Cigarette Store Cost Summary:
Bare Minimum Store: $5,000-$7,000 Maybe less, depending on how creative you are, and if you, or a family member are going to be the only working the store. Sometimes it’s good to start small and slowly upgrade over time.
Higher End Store: $10,000 – $25,000, and the more the merrier. This will ensure you have nice signage(interior & exterior), nice display cases loaded with product, nice decor, an organized inventory and cash register system, and a good marketing/advertising program that works.
How much can an ecig store make?
We have heard of stores doing anywhere from a few hundred dollars per day in sales, up to 3,000+ dollars a day in sales. It all depends on the population, the location, the availability of parking, and the marketing/advertising program implemented by the store. To further aid you in the process of opening an ecig store, we have included some step by step instructions below of different things you may need to complete during the process of opening your store.
How to open an ecig store Step by Step Instructions
Step 1 – Set your budget and make sure the project is plausible.
Step 2 – Decide on a name for your store, that no one else is currently using. Trademark it.
Step 3 – Trademark the name and file an LLC or Inc. under that name.
Step 4 – Hire a graphic designer to design you a logo, business card, flyer, and product brochure for your store. Have these printed.
Step 5 – Find a high visibility location, in a high traffic area, that has out front parking, a good spot for a sign, and room for display cases inside. Negotiate the lease.
Step 6 – Paint store if necessary. Do any construction if necessary.
Step 7 – Order display cases off of the internet, or from a local provider, measure out your store and design them to fit in the most efficient way. It would be ideal to have 5-7 display cases.
Step 8 – Order furniture/fixtures/decor to complete design of store.
Step 9 – Order interior sign for behind the center display case, that is created from your new logo.
Step 10 – Order light up exterior sign for above the door, that is created from your new logo.
Step 11 – Order window & door text decals that have your business name/logo, message/slogan, and products you sell.
Step 12 – Order enough product to fully stock the display cases. We recommend that you stock the center display case with 40+ flavors of eliquid. We offer wholesale electronic cigarettes as a service and can supply any vapor shop with top quality products. Our wholesale site is located at www.electroniccigaretteswholesaler.com. The minimum order is $350. But we will waive the minimum order for any vapor shop/ecig store looking to carry our products.
Step 13 – Hire employee. You can use craigslist to put out an ad, or you can put an ad in your local newspaper, or simply make a post on your Facebook page, and I’m sure someone you know is probably looking for a job, or knows someone who is. It is important that the employee knows all there is to know about the products and is good with customers. We have found that time spent with each customer can range from a few minutes all the way up to an hour! There is many flavors to try and many great products as well.
Step 14 – Set your employee up through a payroll company. It is not worth it to try to do all of the employee paper work by yourself. This way, at the end of the week, or of two weeks, you just call your employees hours into the payroll company, they issue a check, and take care of the rest, this includes any employee related correspondence with the government.
Step 15 – Insure your inventory, insure your business contents, get business interruption insurance, and get workman’s compensation insurance on your employees.
Step 16 – Get a cash register and/or POS system with inventory management. Inventory management is extremely important. You are going to need to know how much of each product sells daily on average, in order to calculate your orders for more inventory. A management system tied into your cash register, is the easiest way to do this. There is touch screen systems that make things very convenient.
Step 17 – Set a grand opening. Issue a press release and send it to all major media outlets in your local area, including television news stations, newspaper, and radio, to inform them about the grand opening, Put several ads in the newspaper, with coupons, leading up to this date.
Step 18 – Open your store.
A very profitable venture
Opening an ecig store could prove to be a very profitable venture for any entrepreneur who has the drive, motivation, and initial investment to make it happen. This is an emerging industry and it will only continue to grow at incredible rates. We offer all Vapor King products at wholesale electronic cigarette prices for reselling in stores. At the current wholesale pricing structure, you will make about 40-60% profit on each item you sell in your store. If anyone is interested in opening an ecig store, or purchasing electronic cigarettes wholesale, and has any questions, please contact the author using the credentials below.
Co-Owner of Vapor King Electronic Cigarette Brand and Electronic Cigarettes Inc.
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Buy wholesale ecigarettes at www.electroniccigaretteswholesaler.com
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