Vapor Retail Store (High-End)
Vapor Retail Store (High-End)
New Braunfels, TX
Business is an electronic cigarette company which sells non-tobacco products to consumers in Texas. The business sells e-liquids, electronic cigarette batteries, atomizers, vaping accessories, fashion jewelry and operates out of a brick and mortar store in New Braunfels Texas. We 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 70 years old. We are a specialty retailer with medium competition in New Braunfels, Texas area.
In the United States, e-cigarette sales have grown at an annual rate of 115 percent in the 2009-15 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.
The asking price for the assets of the business is $125,000 with $90,000 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 cost of $48,000, FFE (Furniture, Fixtures and Equipment) valued at $25,000, 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 Monster Vape, Thanks For Vaping, and Smoke To Live. 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, Aspire, 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 sweet