Running a vape shop can be a very rewarding venture for an entrepreneur. Guiding people through the switch from smoking to vaping means that you’re making a positive difference in their lives. With each sale, you’re helping a customer feel better, smell better and save a bunch of money – and you’re being rewarded financially in the process, so everyone wins.
Starting a vape shop, however, isn’t a cheap proposition. According to the financial website NerdWallet.com, you’ll need to budget around $50,000 – plus monthly expenses – to get started.
Did that number scare you off? If not, stick with us because we’re going to provide a rough business plan that can help you get started. If you want to start a vape shop, here are the most important major expenses that you’ll need to plan for.
Storefront
Before you can start a vape shop, the most important thing that you’ll need to know is where you’re actually going to do business. If you happen to live in a decently sized city that doesn’t have a vape shop already, you’re in luck because you can set up shop just about anywhere and can expect to get a fairly large customer base almost immediately. If not, you’ll need to scout for a location that meets your budget and has a good number of people living in the region but has little or no existing competition. Don’t forget that in addition to the monthly rent for the storefront, you’ll also need to budget money for the power and water bills.
Inventory
Products comprise the largest expense when you start a vape shop. There’s a huge volume of vaping products on the market today, and you’ll need to carry a good mix of everything because different people want different things. Here are the main products that you’ll need to stock if you want your vape shop to be successful.
- Disposable Vapes: Disposable vapes are the most popular vaping products today, so you’ll need to stock plenty of them. There are several well-known brands like Geek Bar, Raz Vape and Lost Mary. Each brand makes at least a few popular models, and most models are available in dozens of flavors. The huge level of product variety is a big reason why stocking a vape shop can be so expensive.
- Refillable Vapes: Disposable vapes may be popular, but there are many people who prefer refillable devices because they’re more economical and more environmentally friendly. You’ll want to carry a few different pod systems along with at least one or two larger vape mods. All refillable vapes require replacement parts such as pods or coils, and you’ll need to carry those as well.
- Vape Juice: In addition to replacement parts, refillable vapes also require bottled vape juice. Just like disposable vapes, vape juice is available from many different companies – and each brand has its own range of flavors and nicotine strengths. You’ll need to carry the largest selection of vape juice that you can because everyone wants something different.
Staff
If you plan to have a vape shop that’s open for more than just a few hours a week, you’ll need to hire at least one person to run the store when you can’t be around. Hiring staff can be costly – especially in 2025. Inflation is rampant, and no one wants to work for less than a livable wage. It’s also crucial to understand that you can’t hire just anyone off the street to be a cashier in a vape shop because you need employees who know how to use the products and can make appropriate recommendations. A good employee is a great asset to any vape shop, but he or she won’t come cheap.
Insurance
When you have tens of thousands of dollars of inventory crammed into a small storefront – and most of those products contain potentially flammable lithium-ion batteries – insurance becomes paramount. Because of the high value of your inventory, you can expect to pay a somewhat higher insurance premium than other types of businesses would. It’s a good idea to start comparing rates well before your store opens.
Payment Processing
A vape shop can’t be successful if it’s a cash-only business, so you’ll need a way to accept credit card payments. If you’ve operated other businesses and have gone through this before, you’ll be in for an unpleasant surprise here because payment processing costs more when you’re in the vaping industry. That’s because vape companies are considered “high-risk” businesses due to the higher likelihood of chargebacks compared to other industries. You’ll pay more for each transaction as a result and will need to plan for that when you set your prices.
Web Development
A website is an absolute necessity for every business that exists. It’s estimated that 89 percent of people go online when they’re looking for local businesses, so just being in the phone book isn’t enough. It’s okay to have a simple website with only a few pages if you’re only interested in attracting local traffic and don’t care about selling products online. If you don’t have any web development experience, though, you’ll need to budget at least a little money to have someone put a website together for you. You’ll also need to pay a monthly or yearly hosting bill to keep the website online.
Marketing
If you’re lucky enough to snag a storefront in a prime location on a main road, you may not have to do a great deal of marketing for your vape shop because vapes pretty much sell themselves. If you put a large sign in a high-traffic area, people will see that there’s a new vape shop and will stop in to see your selection. If your shop is a bit out of the way, though, you’ll need a slightly larger marketing budget in order to let the members of your community know that you exist. Depending on the regulations in your state, some valid marketing options may include billboards and other signage, newspaper ads, radio ads and television commercials.
