How to open an e-cigarette business

The sale of electronic cigarettes is a business that generates a good income. Many people are interested in vaping today, it is of interest not only to young people, but also to those who are older. Therefore, there is an opportunity to attract customers and earn good money. At the same time, the creation of such a store does not differ fundamentally from the organization of another outlet. It is necessary to purchase goods and attract customers, while taking into account the specifics of the products you sell.

Franchise – what is it

Franchising or the conclusion of franchise agreements is a special type of business. It is completely legal and beneficial both for the franchise owner and for the one who enters into a contract with him; such a person is called a "franchisee".

A franchise is an agreement between the brand owner and the entrepreneur. Simply put, if you want to sell electronic cigarettes, you will be offered not only a product, but also a package of documents that is necessary for carrying out business activities. You will also be supported with advice and advice on what you need to open a vape shop. But at the same time, you commit to work in accordance with certain standards. It is often stated in the agreement that you can receive goods only from certain suppliers.

Yes, not everyone likes working with restrictions. However, the franchise makes the life of a businessman much easier. If you don't know how to open an e-cigarette store, you will be taught. You will receive lists of documents and checklists, according to which you will check if everything is ready. They will help you develop a business plan for the sale of electronic cigarettes, and will assist you in finding suppliers.

As a rule, representatives of the franchise owners are experienced people. They have already helped many entrepreneurs earn money. And they are interested in making your business selling electronic cigarettes and liquids start working and making a profit.

What does the franchise owner get out of it? It depends on what is specified in the contract. Most often, you need to pay a certain amount, and then deduct a percentage of the profit. Therefore, it is really beneficial for those with whom you enter into an agreement that your business goes well.

Why is it beneficial for franchisees? There are many reasons why even experienced businessmen are interested in considering franchise agreements:

• everything has already been worked out, you just need to follow a plan that has demonstrated its viability in practice;
• representatives of the company with which you signed the agreement are ready to provide advice at any time, and these will not be abstract advice in the spirit of "well, look at the documents that we sent you", but recommendations on the case, taking into account the specifics of the specific situation;
• you will not have problems with suppliers; and if one of them decides that he no longer wants to work in this business area, you will be warned in advance;
• the most important thing is not to start everything from scratch and invest huge sums in order for the business to start working, because it already exists and works, and you only need to integrate into ready-made and proven schemes;
Due to the volume of sales, the franchise owner can provide a better price, which leads to greater profit for the franchisee.

There are several types of franchises. The most common is the standard one. This is exactly what was discussed above, that is, in accordance with its rules, it is necessary to strictly comply with the conditions set by the brand. In exchange, you get the necessary support.

Other options are possible, for example, a free franchise. Its rules are less strict: the contract states that many conditions are only wishes, not strict requirements. But it is also stipulated that in certain cases the brand owner disclaims responsibility and does not support the franchisee. Therefore, a free franchise is more suitable for people who already have business experience and who have an idea of how to run a business on electronic cigarettes or vape and not burn out.

Features of e-cigarette franchises

Let's start with the advantages:

• as mentioned above, e-cigarettes have a lot of fans: some like to steam because it is fashionable, others consider e-cigarettes an alternative to conventional ones and hope to quit smoking; this means that you will have a lot of potential buyers;
• despite the fact that vapes are popular, the competition in this niche is still not as tough as it could be, and you have a good chance to take your place in it, especially if there is someone who will provide information on how to open at any moment electronic cigarette store from scratch in 2022;
• electronic cigarettes are a product that does not require certification, it is voluntary - however, provided that the power supply is not included in the kit, because it just needs to be certified;
• such a business can be opened with minimal financial investments, and investments will pay off quickly;
The brand is recognizable because the franchise already has some work experience.

There are disadvantages too, and you need to be prepared for the fact that problems may arise that will have to be solved.

Secondly, it is forbidden to advertise electronic cigarettes in traditional ways. You can't attract customers by posting videos on TV channels or billboards on the streets. This, of course, complicates the conduct of business.

How to choose a suitable franchise

Before signing a contract with those who offer you to run a business selling electronic cigarettes, carefully study the terms of the contract that you are going to sign. And be sure to make sure that the company you are entering into an agreement with is trustworthy. Brands that have nothing to hide always provide a large amount of information about themselves. You can read about them on the Internet. You can ask other franchisees questions.

If there is little information, no one answers your questions, or answers, but in such a way that nothing is clear anyway, and other franchisees prefer to remain silent, then something is wrong. It is highly undesirable to sign an agreement with such a company.

S2B (Shisha To Brother) offers its own answer to the question of how to open an e-cigarette business. It provides assistance in opening standard and mini-format retail outlets.

Regardless of the chosen format, the royalty will amount to 14,500 rubles. For a standard store, the lump sum fee, which is paid once, is 250,000 rubles, for a mini-format establishment, 200,000 rubles. The brand determines the amount of initial investments, respectively, at 2.1-2.4 or 1.3-1.6 million rubles. In addition to the lump sum, the money will be needed to:

• rent a room for a future store;
• repair and arrange it;
• buy or rent furniture and commercial equipment;
• purchase the product;
• paying salaries to employees, even for a small outlet, will require at least two sellers.

S2B company is ready to assist in solving any issues and prepare a business plan for the sale of electronic cigarettes and liquids. She will provide the franchisee with a document, the volume of which is 412 pages. It describes in detail what it will take to create a store and launch an effective business. Detailed checklists are provided, which clearly indicate what needs to be done and at what stage.

The company offers training; it can be:

• remote;
• full-time classes are held in St. Petersburg for those who live in this city or can get to it quickly.

Trained employees are better versed in the specifics of the goods to be sold to the store. They will also gain customer communication skills that will help increase the percentage of sales.

The company also provides:

• corporate identity – your store will stand out noticeably from the competition;
• a ready-made website optimized for the city where you will open a business;
• 1C accounting system;
• a loyalty system that will help attract more customers;
• the best price of the product on the market;
• consultations of a personal manager – the specialist is ready to answer the questions of the franchisee 24/7.

Important nuances