Despite the pandemic and quarantine, many vape shops remained open throughout the lockdown two years ago. These shops made more sales online than ever and now that the pandemic has lost its strength, new vaping shops are being open every day. 
But, should you open your own shop today? Are vape shops a profitable business in 2022? In this article, we’ll explore exactly that, as well as some smart ways to succeed in this market. 

The vape industry today

Just one year ago, the global vape and electronic cigarette market size was valued at $18.14 billion. This number is expected to reach a compound annual growth rate of 30.0% by 2030. Electronic cigarettes have been marked as safer than traditional cigarettes for quite some time now, and as a result, the market growth has been tremendous in the last couple of years. 
As the interest grows, so do the innovations in this field. Nowadays, young users are thrilled with the technologies like squonk mods and pod systems. These have certainly increased the popularity of vaping in recent years. 
What does this mean for people who want to invest in vaping as a business?
We can only predict what will come in the future, but based on what we know by now, entering this market can be very promising with the right strategy and investment. 
If you are thinking of starting a business in this industry, you need to make sure that you know how to do it, what to invest in it, and how likely you are to succeed. The truth is, with a proper marketing strategy, a good business plan, and quality products, this can be a really profitable market for you to tackle. 

Thinking of opening a vape shop? You should see Lightspeed’s guide to opening a vape shop!

If you decide to open a vape shop, you have a great idea! This industry is at its height these days with the highest number of vapers ever. Still, instead of rushing into getting a place, stocking it, and starting to sell, take it step by step to maximize your potential to succeed. 
You can learn how to do this the right way if you see Lightspeeds guide to opening a vape shop. Lightspeed is an e-commerce platform that facilitates and organizes your online store. Eventually, you’ll create an online presence for your vaping business, so this tool shall come in handy at that point, too. 
According to this guide, there are 9 steps that you must follow if you want to start smart with your vape business:
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Now that you’ve shortly familiarized yourself with all that needs to be done, let’s look closely at whether you should opt for this challenge or not. 

Why vape shops have a high potential to be profitable

One grand reason why vape shops are profitable is because of the growing popularity among users. The number of vapers is growing every day. Research shows that about 52% of adults vape at least occasionally around the world today. 
As the interest grows, so does the number of stores that sell these products. This means that, if you get into this business, you should be prepared to compete with plenty of other stores and brands. As in any competitive industry, those that work the hardest and smartest reap the profit from the customers. 
An average vape shop reports around $26,000 in monthly sales or an annual profit of around $120,000. The truly successful ones get a much bigger piece of the cake. 
That being said, vape shops can be really profitable as long as they are managed properly. 

The path toward a profitable vape business

Businesses require a lot of research, planning, and work to be successful. This is even more important when a business is in a competitive industry. That being said, let’s look into some steps that you must take to make a profitable vape shop in 2022. 

Consider the costs

Opening a vape shop is not cheap. You don’t just need to find a store and stock it with some vaping products. If you want a profit, you need to invest in everything from quality products to online marketing to insurance. 
If you want to learn how much proper branding and stocking for your startup will cost you, do the following:
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Based on your calculations at this point, can you open a vape shop and keep it alive until it starts making profits?
If the answer is yes, we are ready to move on to the next important piece of information. 

Factors that can affect the profitability of your vape shop

If you want to make a shop productive and keep it that way, you should be prepared for the factors that can affect its profitability. 

Competition

This is a fiercely competitive industry and chances are, you’ll have other shops nearby that sell the same or similar products. Many retailers have moved entirely online during the pandemic to lower their expenses and haven’t opened physical stores yet. Even so, in places where vaping is trending such as the UK, some streets are lined with dozens of vaping shops that compete against each other. 
Your competition will definitely be a factor in your profitability. If you work as an independent retailer, you’ll need to compete with small and larger vape companies. The larger ones can access stock at a lower cost, and offer lower prices to your customers. 
This is why it is important to research the competition and keep track of the rates on the market. 

Wholesale costs

Who you’ll use as a vape wholesaler and how much you’ll order at once can determine the profit of your business significantly. This will affect the price you are paying and charging, so consider whether you will set up as an independent retailer and reach out to wholesalers or set up as a franchise of larger vaping companies. 

Regulations

Regulations revolving around vaping change every day. You should be well aware of these regulations at any point to avoid penalties and legal problems. Having a non-compliant store can kill your business at once without any notice. 
This is especially important if you are selling to customers in different locations. You need to make sure to comply with all sorts of regulations. Keep yourself informed of the laws and regulations at all times!

Selling range

Who do you sell to? Do you only sell in-store to people in the area? Or do you post your products online and ship to different states, countries, or even continents?
If you sell to more people, you have a higher potential to reach a wider audience, but this comes with its own set of costs and responsibilities. It can also greatly affect your profitability, so take your business one step at a time. 

Yes, a vape shop can be profitable in 2022!

The accent here is put on ‘can’. Vape businesses can be greatly profitable and successful today because the interest in vaping is tremendous. However, this all depends on how you open and manage your new store. If you do it smart and right, you can expect a grand profit from vaping products. 
Now, all that’s left for us to say is - Good Luck!

WRITTEN BY

Brand Voices