Growing FW Vapor e-cigarette store with eJuice recipes

Fort Worth, TX (Tarrant County)

Seller Financing Available
Growing FW Vapor e-cigarette store with eJuice recipes

Asking Price:$70,000

Cash Flow:$6,133

Gross Revenue:$200,470





Growing FW Vapor e-cigarette store with eJuice recipes

Get Financing Save Print Share Valuation Report

Business Description

Business is an electronic cigarette company which sells non-tobacco products to consumers in Texas. The business sells e-liquids, electronic cigarette batteries, atomizers and vaping accessories and operates out of a brick and mortar store in Fort Worth Texas. They have a very wide customer base, which includes past smokers, people who want to quit smoking, and young vapors’ who enjoy the vaping experience. The average customer is between 18 and 65 years old. They are a specialty retailer with medium competition in Fort Worth, Texas area.

In the United States, e-cigarette sales have grown at an annual rate of 115 percent in the 2009-14 period. It is estimated that global e-cigarette market could increase to $10 billion by 2017. Some analysts predict that e-cigarette use will eclipse that of combustible cigarettes in ten years.

NOTE E2 VISA ELIGIBLE. This is an ideal business to obtain an E2 Visa: full-time employees and profitable income for a qualified owner-operator.

The asking price for the assets of the business is $70,000 with $35,000 cash at closing and $35,000 seller-financed for 2 years at 8% to a qualified purchaser. (monthly payments of approximately $1,583/mo). All financing is to be personally guaranteed. The assets include inventory at retail value of $26,000, FFE (Furniture, Fixtures and Equipment) valued at $15,000, plus company developed recipes valued at $20,000.

INDUSTRY OVERVIEW: The US electronic cigarette industry consists of about 4,500 companies with almost $2 billion in combined annual revenue. Large companies include DFW Vapors, Artesian Vapor, and Vapor Galleria. The industry is fragmented, with many small companies making up the industry.

COMPETITIVE LANDSCAPE: The electronic cigarette industry has a unique competitive landscape because the retailers are all so different. For example, some electronic cigarette companies create small stores with limited amounts of merchandise and displays, whereas other companies create elaborate stores with large product differentiation. People’s desire to quit smoking, the availability of vaping stores in the area, and cost drives demand in the vaping industry. Additionally, availability of products, ability to control costs (labor, shipping, returns, etc.), and pricing drives profit. Further, the competitive landscape allows small companies to complete with large companies through exceptional customer service, similar product availability, and low prices. Thankfully, the industry is not labor-intensive.
The vaping industry is marked by a wide variety of employment salaries. Some retailers pay commission, salaries, or hourly wages. Additionally, some vaping companies have benefits, while other companies do not. The median salary for managers is around $24,000 a year. Sales associates in the vaping industry make around $14,000 a year.
Most vaping companies sell the same core items with the same types of technology, including atomizers, batteries, kits, and e-liquid. Additionally, most e-cig stores carry products by Kanger, Innokin, Dovpo, Joytech, and Siegeli. Finally, most vape stores sell out of brick and mortar locations and online.
Electronic cigarette retailer’s sell e-cigs and e-liquid. Electronic cigarettes are battery-powered, portable devices that simulate smoking. Vapor comes from a battery-powered heating element called an “atomizer”. The act of “smoking” an electronic cigarette is referred to as “vaping”, and it mimics smoking, but does not involve combustion. More specifically, the individual inhales vapor, not smoke. E-cigarettes vaporize a special solution called e-liquid. E-liquid contains a base of propylene glycol and vegetable glycol, which are two substances commonly found in foods such as M&M’s, cake, and biscuits. Propylene glycol is considered safe by the U.S. Food and Drug Administration, and it is used as an humectant (E1520), solvent, and preservative in food, and for tobacco products. Vegetable Glycol is a mixture of carbon, hydrogen, and oxygen, which comes from vegetables. Vegetable Glycol is used in the food industry as a moistening agent and a sweetening agent. E-cig solution often includes nicotine. Nicotine levels depend upon the consumer’s preference and smoking habits. E-liquid does not have to contain nicotine. It depends upon the consumer’s desire, and people under 18 may not buy e-liquid with nicotine in it. Some consumers prefer flavor only, while others want nicotine in conjunction with flavoring to aid in their “stop-smoking” efforts.

KEY WORDS: vaping vapor vape e-cigarette ecigarette, juices e-liquid

Attached Documents

Detailed Information

Included in asking price
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
The business occupies ~975+/- SF of office and retail space and is leased for $1,425/mo + NNN of ~$802.24 for a total rent of $2,227.34/mo. Base rent increases to $1,625 in the last 12 months of the lease. Utility cost averages $325/mo. The space includes a front retail space, one bathroom and a backroom area. The 5 year lease originated ~October 8, 2013 and expires approximately October 2018. Security Deposit is approximately $1,300. Seller believes that landlord is willing to offer a long-term lease and options to a qualified purchaser.
Business is a specialty retailer with medium competition in Fort Worth, Texas area. There are 5 other electronic cigarette stores within a five-mile radius.
Growth & Expansion:
The seller has used online, magazine, and word of mouth advertising to build the business. Marketing methods include Outside Sales, Magazine Ads, Trade Shows, Yellow Pages, Website and Network/Referrals. A new, energetic owner can further increase sales & profits in many ways: 1. Continue current contract to manage website, Facebook, Yelp, Google and other online marketing accounts., 2. Expand product line (a large amount of new products has recently hit market), 3. Reduce payroll cost, 4. Develop and implement online sales strategy, 5. Develop and implement telephone ordering sales strategy (currently phone orders approximately $500/month), 6. Expand by adding additional locations
Price $70,000 with $35K down & $35k seller-financing
Support & Training:
Seller will train buyer for 2 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreeable fixed compensation to assist with general management functions for a finite period. The sellers are willing to provide a non-compete for 2 years within a 10-mile radius of the store.
Reason for Selling:
Retirement, Employment

Listing Statistics for Premium Members

Ad#:1192218 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's terms & conditions before responding to any ad.

Contact the Seller

Sign up for the BuyerNewsletter.
Learn to use your IRA/401K to buy a business: Guidant Financial (min. $50K needed in IRA/401K)
Contact Seller Loading

Buyer AdamNobleGroup

Business Listed By:
Buyer AdamNobleGroup

Adam Noble Group

Show Phone Number

View My Listings

Sponsoring Broker:
Jeff Adam

Find out more...

Get more details about this business.

Similar Listings


Franchise Opportunity In TX
Capital Required: $250,000