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License​ ​To​ ​Vape 1506​ ​Saint​ ​Marys​ ​Avenue Syracuse,​ ​NY​ ​13202 Website:​http://www.licensetovape.com/ Google​ ​Site:​ ​https://sites.google.com/site/licensetovapeshops/ Google​ ​Folder:​ ​https://goo.gl/q24tVj Twitter:​ ​https://twitter.com/mrmarklbanks https://twitter.com/licensetovape https://plus.google.com/+Licensetovape https://plus.google.com/106999758347327623067 https://www.facebook.com/licensetovape

Five​ ​Insights​ ​From​ ​Vape​ ​Shops PHILADELPHIA​ ​--​ ​Don​ ​Burke,​ ​senior​ ​vice​ ​president​ ​at​ ​Management​ ​Science​ ​Associates​ ​(MSA), teased​ ​an​ ​upcoming​ ​survey​ ​of​ ​vape​ ​shop​ ​owners​ ​at​ ​this​ ​year’s​ ​NATO​ ​Show​ ​(link: http://www.cspnet.com/category-news/tobacco/articles/changing-vapescape).​ ​Back​ ​in​ ​April, Burke​ ​could​ ​only​ ​share​ ​a​ ​couple​ ​trends​ ​MSA​ ​had​ ​gathered,​ ​as​ ​the​ ​data​ ​specialist​ ​company​ ​had only​ ​gathered​ ​a​ ​handful​ ​of​ ​responses. Fast-forward​ ​to​ ​August,​ ​and​ ​Burke​ ​was​ ​able​ ​to​ ​share​ ​an​ ​entire​ ​presentation​ ​on​ ​data​ ​gleaned from​ ​over​ ​100​ ​vape​ ​shop​ ​owners.​ ​Respondents​ ​operated​ ​brick​ ​and​ ​mortar​ ​locations,​ ​online-only shops​ ​or​ ​a​ ​combination​ ​of​ ​brick​ ​and​ ​mortar​ ​and​ ​online,​ ​with​ ​33​ ​states​ ​and​ ​every​ ​major​ ​market​ ​in the​ ​United​ ​States​ ​represented. “We​ ​think​ ​this​ ​is​ ​a​ ​pretty​ ​pioneering​ ​survey,​ ​the​ ​first​ ​of​ ​its​ ​kind,”​ ​Burke​ ​said​ ​while​ ​presenting​ ​the results​ ​at​ ​CSP’s​ ​Total​ ​Nicotine​ ​Conference. Here​ ​are​ ​five​ ​key​ ​points​ ​from​ ​the​ ​survey:

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1.​ ​Vape​ ​shops​ ​are​ ​making​ ​bank.​ ​The​ ​majority​ ​of​ ​survey​ ​respondents​ ​reported​ ​monthly revenues​ ​between​ ​$10​ ​and​ ​$50,000​ ​in​ ​brick​ ​and​ ​mortar​ ​sales.​ ​“Those​ ​are​ ​pretty​ ​crazy numbers,”​ ​Burke​ ​said,​ ​although​ ​most​ ​respondents​ ​reported​ ​less​ ​than​ ​$10,000​ ​monthly​ ​sales online. 2.​ ​They​ ​are​ ​not​ ​using​ ​traditional​ ​distribution.​ M ​ ost​ ​of​ ​operators​ ​are​ ​buying​ ​their​ ​inventory online​ ​as​ ​opposed​ ​to​ ​traditional​ ​wholesalers,​ ​especially​ ​when​ ​it​ ​comes​ ​to​ ​e-liquids:​ ​40%​ ​said they​ ​were​ ​buying​ ​at​ ​least​ ​some​ ​e-liquids​ ​from​ ​other​ ​vape​ ​shops,​ ​and​ ​57%​ ​buy​ ​e-liquids​ ​from international​ ​online​ ​wholesalers.​ ​Burke​ ​pointed​ ​out​ ​that​ ​these​ ​international​ ​wholesalers​ ​could​ ​be very​ ​problematic​ ​once​ ​the​ ​category​ ​is​ ​regulated​ ​by​ ​the​ ​U.S>​ ​Food​ ​and​ ​Drug​ ​Administration (FDA). 3.​ ​They​ ​carry​ ​tons​ ​of​ ​SKUs.​ ​It’s​ ​not​ ​surprising​ ​that​ ​vape​ ​shops​ ​carry​ ​more​ ​e-vapor​ ​SKUs​ ​than the​ ​average​ ​convenience​ ​store,​ ​but​ ​the​ ​numbers​ ​are​ ​staggering.​ ​MSA​ ​found​ ​vape​ ​shops average​ ​542​ ​SKUs​ ​overall,​ ​with​ ​most​ ​locations​ ​carrying​ ​more​ ​than​ ​300​ ​e-liquid​ ​options. Burke​ ​was​ ​even​ ​more​ ​surprised​ ​by​ ​the​ ​number​ ​of​ ​heat-not-burn​ ​offerings:​ ​respondents across-the-board​ ​averaged​ ​57​ ​heat-not-burn​ ​SKUs​ ​with​ ​brick​ ​and​ ​mortar-only​ ​retailers averaging​ ​104.​ ​“That​ ​really​ ​says​ ​something​ ​about​ ​where​ ​the​ ​category​ ​is​ ​going,”​ ​Burke​ ​said. 4.​ ​Flavors​ ​are​ ​important​ ​…​ ​except​ ​tobacco.​ ​Only​ ​one​ ​third​ ​of​ ​the​ ​vape​ ​shop​ ​owners​ ​surveyed said​ ​tobacco​ ​and​ ​menthol​ ​flavors​ ​were​ ​very​ ​important​ ​to​ ​their​ ​business—a​ ​stark​ ​contrast​ ​to convenience​ ​stores,​ ​where​ ​MSA​ ​data​ ​shows​ ​tobacco​ ​and​ ​menthol​ ​account​ ​for​ ​more​ ​than​ ​half the​ ​vape​ ​flavors​ ​sold. “What​ ​we’re​ ​seeing​ ​is​ ​that​ ​a​ ​(vape​ ​shop)​ ​consumer​ ​may​ ​start​ ​out​ ​with​ ​tobacco​ ​or​ ​menthol flavors,”​ ​said​ ​Burke.​ ​“But​ ​once​ ​they​ ​move​ ​to​ ​fruit​ ​or​ ​dessert​ ​flavors,​ ​they​ ​don’t​ ​go​ ​back.” 5.​ ​Convenience​ ​stores​ ​are​ ​not​ ​a​ ​competitive​ ​threat.​ W ​ hen​ ​asked​ ​which​ ​channel​ ​posed​ ​the biggest​ ​threat,​ ​60%​ ​said​ ​online​ ​retailers,​ ​56%​ ​said​ ​vape​ ​shops,​ ​15%​ ​said​ ​tobacco​ ​shops​ ​and just​ ​9%​ ​said​ ​c-stores. “It’s​ ​interesting​ ​that​ ​they​ ​don’t​ ​see​ ​c-stores​ ​as​ ​competition,”​ ​Burke​ ​said,​ ​theorizing​ ​that​ ​it​ ​might have​ ​to​ ​do​ ​with​ ​the​ ​fact​ ​that​ ​education​ ​is​ ​a​ ​big​ ​draw​ ​for​ ​vape​ ​shop​ ​consumers​ ​and​ ​c-stores​ ​likely can’t​ ​compete​ ​in​ ​that​ ​arena. It​ ​was​ ​also​ ​interesting​ ​was​ ​the​ ​lack​ ​of​ ​competition​ ​from​ ​any​ ​retailer.​ ​When​ ​asked​ ​about​ ​specific competition​ ​in​ ​their​ ​areas,​ ​the​ ​majority​ ​said​ ​there​ ​were​ ​less​ ​than​ ​five​ ​tobacco​ ​shops​ ​or​ ​vape shops​ ​near​ ​their​ ​stores​ ​they​ ​viewed​ ​as​ ​a​ ​threat. “That’s​ ​not​ ​a​ ​lot​ ​of​ ​competition,”​ ​Burke​ ​said,​ ​“especially​ ​with​ ​how​ ​much​ ​money​ ​they’re​ ​making.”

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License​ ​To​ ​Vape Contact​ ​Details: License​ ​To​ ​Vape 1506​ ​Saint​ ​Marys​ ​Avenue Syracuse,​ ​NY​ ​13202 Website:​http://www.licensetovape.com/ Google​ ​Site:​ ​https://sites.google.com/site/licensetovapeshops/ Google​ ​Folder:​ ​https://goo.gl/q24tVj Twitter:​ ​https://twitter.com/mrmarklbanks https://twitter.com/licensetovape https://plus.google.com/+Licensetovape https://plus.google.com/106999758347327623067 https://www.facebook.com/licensetovape

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