How to start an e-cigarette business

If you're looking to invest in an e-cigarette franchise, there's an increasing number of businesses to consider. As with all franchising decisions, new franchisees must take the time to perform extensive research, meet with franchisors and consider exactly what they want from their franchisor. Each vaping franchise you look at will boast unique benefits and drawbacks. Consequently, you’ll need to look at a variety of factors if you’re going to make an informed decision.

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Today we explore the e-cigarette industry in more depth, then we delve deeper into why and how you should start your own e-cigarette franchise.

Current state of e-cigarette industry

Around 2.9 million UK adults currently vape. This is an enormous uptake, considering e-cigarettes in their current form have only been widely commercially available since 2013. Such a drastic increase in vapers over a relatively short period is indicative of the considerable potential for growth in the sector.

This potential is also demonstrated by the fact that the number of people smoking traditional cigarettes has been in steady decline over the last few years. The more people looking to give up smoking, the higher the number of potential customers. In other words, as more people attempt to give up smoking by searching for an alternative, the higher the potential for growth in a vape franchise.

Why start an e-cigarette business?

There are several reasons why you may want to consider an e-cigarette franchise above all others. However, the most important may be the market’s potential for growth. In the UK, some public health officials and experts actively support e-cigarettes as an alternative to traditional smoking.

This means an e-cigarette franchise benefits from the backing of health professionals and from new customers being pushed towards vaping by the medical establishment. It also means that franchisees can operate and grow their business in the knowledge that they are doing something advantageous – and potentially lifesaving – for their customer.

How to start an e-cigarette business

1. Regulations. It will come as no surprise that there are certain regulations you have to follow when running an e-cigarette business. It is, of course, incredibly important that you obey the law. You don’t actually need a licence to open the shop, but you should operate a Challenge 25 policy and not sell to anyone under the age of 18. Also, the Tobacco Products Directive legislation outlines rules that e-cigarette retailers must adhere to. This includes ensuring minimum standards for the safety and quality of all e-cigarettes and e-liquids and creating an environment that protects children from starting to use such products. It’s important to keep up to date with the latest changes in the law and watch out for the impact that Brexit has on the industry. For more information, head to the GOV.uk website.
2. Online or shop-front store. You need to decide which type of e-cigarette business you want to run. One advantage of a brick-and-mortar location is that it can be used as a social hub for vaping fanatics. If you do go for this option, make sure to set up in a busy area with plenty of potential customers walking past. If you want to cut costs though, an e-commerce shop may be a better option.
3. Exceptional customer service. To set yourself apart from the competition, you should provide a unique customer experience that consumers haven’t had anywhere else. It’s a good idea for you and your employees to become e-cigarette experts, as customers tend to have a lot of questions about the safety and different types of products they can buy. As well as your staff having the product and industry-specific expertise, they should have a warm personality and be approachable to customers.
4. Product selection. The wider your product selection, the better; that way, you can cater to a large number of customers’ needs. For instance, you could offer starter kits and accessories as well as the e-liquids and different devices. Choose brands that you would be happy to use yourself. If the products are high in quality, you shouldn’t have to deal with such a high volume of returns. Also, you should be able to speak about the products passionately, making promotion a whole lot easier too.
5. Use social media. Create accounts on social media platforms like Facebook, Twitter and Instagram and publish blogs, articles or any content that your customers or potential customers would enjoy reading and maybe even share with friends. Try to think outside the box and get creative, so the content is compelling enough that individuals want to find out more about the brand.

Here, we take a look at our top three e-cigarette franchises and explore what makes them special.

E-cigarette franchise opportunities

Ecigwizard

As the largest retailer of e-cigarettes – both online and offline – in the UK, Ecigwizard is in a fantastic position to continue expanding its brand through further franchising. With over 45 outlets operating throughout the country and a well-respected professional image, joining the Ecigwizard family is a great way to begin building your own business with the help of an organisation that boasts years of experience. As well as stocking e-cigarette paraphernalia, Ecigwizard has its own dedicated laboratory for developing new e-juice flavours. This allows it to continually introduce new stock and manufacture e-juices to the highest safety standards.

Those who are considering owning a franchise will be required to invest a minimum of £40,000 personally. However, the typical total investment is around £60,000. Ecigwizard estimates that franchisees can earn an expected revenue of £290,000 after two years of business. In return for the investment, Ecigwizard franchisees receive training in all aspects of running an e-cigarette shop. This includes training relating to product knowledge, financial management, administration duties and the day-to-day running of the business. Franchisees will also be taught to use the Ecigwizard EPOS system and be provided with the initial stock necessary for opening the store.

Vapestore

Part of the well-known Vapouriz Group, Vapestore is one of the leading e-cigarette businesses in the country and is actively looking for new franchisees to join its team. Launched in 2014, the company rolled out its flagship E-Cigarette Franchise Programme in 2017 and hasn’t looked back since. Initially operating as an online retailer, Vapestore has accrued extensive industry expertise and in-depth understanding of the critical technologies and products in the e-cigarette market. With the switch to a brick-and-mortar franchising system, it became one of the hottest properties in the e-cigarette sector.

Investment in a new Vapestore franchise requires an initial sum of £50,000. This goes towards £25,000 of stock and additional costs for shop preparation and fitting. Depending on the size, condition and location of the shop, the price of refurbishment and fitting can be anywhere from £20,000 to £35,000.

In return for this investment, new franchisees will also receive the invaluable assistance of Vapestore’s franchise experts. They'll help you set up the store, prepare for launch, provide training and offer ongoing support throughout the early stages of development. Access to EPoS and iZettle systems is also available. Finally, all new franchises will be assisted in marketing their new venture through Vapestore’s regional and national advertising campaigns.

The London Vape Company

Starting out as a small, family-run business, The London Vape Company is now the UK’s fastest growing vape company. Focusing on honest, open and welcoming customer service, as well as an excellent product range and a thorough understanding of its stock, The London Vape Company prides itself on developing strong links with its customers and encouraging repeat business. With a popular ‘try-before-you-buy’ customer experience and an enormous range of e-liquid flavours, the franchise’s excellent reputation is well-earned.

New franchisees will benefit from help selecting the ideal store location, a full store kit-out, access to marketing collateral, use of the London Vape Company’s highly regarded brand image and some of the industry’s top products and e-juice flavours.

All new franchisees will be fully trained and supported through the early stages of their business’ development. You’ll also benefit from state-of-the-art business technologies, including EPoS and online systems. If you’re looking to invest in a franchise that prides itself on customer service and has developed an extremely effective brand name and image, The London Vape Company might be the perfect opportunity for you.

To become franchisee, you will need to make a minimum investment of £30,000 and a total investment of £60,000.

Conclusion

Currently, e-cigarette franchises are one of the fastest growing retail franchise opportunities in the UK. While there’s growing competition as more and more entrepreneurs recognise the potential for profit in a vape business, there’s plenty of room in the market for well-branded franchises.

One of the critical benefits shared by all of our top three e-cigarette franchises is the brand recognition they’ve accumulated over the years. These are franchises with high levels of repeat business and customer loyalty. Though each offers potential franchisees something slightly different, Ecigwizard, Vapestore and The London Vape Company are all well-regarded franchises with high potential for growth.