Category: Shop talk

U.K.’s Largest Vapor Retailer Selects One of Its Own to Lead New Quit Campaign
A new nationwide stop-smoking campaign launched by the UK’s largest vaping retailer has tabbed a Port Talbot man will be the face of the in-store campaign.
Douglas Parsons’ stop-smoking journey will be featured across a range of collateral, including on each VPZ store’s in-house screens as he details his switch to vaping.
The 26-year-old previously smoked a cigarette every hour before being encouraged to kick the habit by his partner.
Parsons had tried a range of over-the-counter smoking cessation products but admits he continually went back to cigarettes as he struggled to kick the habit once and for all, according to a press release.
He eventually turned to vaping as an alternative and has never looked back after taking advantage of VPZ’s 28-day support program and money back guarantee on Innokin brand starter packs.
“The VPZ staff in-store have been brilliant and having the opportunity to be able to track how my body is reacting really puts everything into perspective. It is genuinely crazy the difference vaping has made to my body,” Parsons said.
Latest consumer research from VPZ shows that 89 percent of customers stated that vaping helped them quit smoking altogether. Among the success stories, 97 per cent stated that vaping helped them most throughout the journey towards kicking the habit. And of those, 79 percent confirmed that they had been smoking for six years or more.
January 21, 2020
The naked truth
In the face of adversity, Naked 100 readies itself for the challenges of submitting premarket tobacco product applications to the U.S. FDA.
By Timothy S. Donahue
It’s good to be Naked. In just a few short years, USA Vape Lab’s Naked 100 brand has become one of the hottest selling e-liquids in the world. The Naked 100 brand is so popular that some industry estimates have it being sold in over 9,300 brick-and-mortar vape shops across the U.S. Retailers say that Naked 100 e-liquids are so prevalent with vapers because the brand’s “expertly balanced flavor profiles” are perfectly suited for vaping. One shop owner claimed that Naked 100 flavors stay “fresh and bright as you vape” them.
According to Kristofer Manabat, the chief strategy officer atUSA Vape Lab, the company found success because its owners have always had a strong understanding of the vapor consumer and the constant challenges facing vape shop owners. After all, they had all owned or worked at vapor retailers before starting USA Vape Lab. Manabat, for example, was one of the driving forces behind the success of Vapor DNA, a major online vapor retailer.
“There are a few things that have helped us become a successful small business. It’s our high-quality products. It’s our approachable attitude,” says Manabat. “It is important to remember that all of the executives at USA Vape Lab came from the vapor retail segment, so there is a clear understanding of the consumer and the needs within a vape shop. One of our core business pillars is to focus on engagement with store owners, employees and consumers.”
Based in Southern California, USA Vape Lab’s 43,000-square-foot headquarters houses a 7,300-square-foot ISO 7-certified lab that only produces Naked 100, The Schwartz and a few small OEM brands, says Manabat, adding that USA Vape Lab moved into the new facility after outgrowing its previous location in less than two years.
“As we have grown and as market demand, especially for Naked, grew, it really squeezed and capped out our capacity,” he says. “This facility has been under construction since August of 2017, and we just moved our manufacturing component here in December of 2018.”

A better approach
USA Vape Lab began in 2015 with its The Schwartz brand e-liquid, which was designed for a specific palette and demographic, according to Manabat. He says it quickly became apparent that the company needed another brand that was more approachable to the everyday smokers that were quickly becoming everyday vapers. The company released the Naked brand (now Naked 100) in early 2016.
“E-liquid flavors were beginning to become more complex. We wanted a product that wasn’t. Naked 100 was simple, understandable and approachable. Many brands at the time were being very inclusive, catering to certain demographics and subcultures. They gravitated towards edgy or sophisticated, for example,” says Manabat. “Naked was not that. Naked 100 was very broad. To me, Naked 100 is the only brand that straddles the broad spectrum of the consumer landscape. It is a very inclusionary product.”
Then, in mid-2016, Naked began to hit an apex of sales, according to Manabat. “This was during a time period where the vapor market had witnessed numerous top brands reach the height of the market only to find out there was volatility at the top,” he explains. “There were several brands that grew very quickly, found success for a few months, maybe a year, and then fell completely out of favor with consumers, and that transitioned to the vape shop owners.”
Looking back at their retail experience, the owners of the company knew that availability was going to be a major factor in bucking the roller-coaster market trend and making Naked 100 a long-term success, according to Manabat. “There has to be accessibility for the consumer,” he says. “Transitory customers benefit from having the ability to access their favorite brand wherever they go.” In order to meet this challenge, Manabat says the company took on a grassroots approach and started visiting vape shops.
“We started to interface and go to the stores, put boots on the ground and interact face-to-face with everyone we could,” he says. “We continue to do this today. It is a shifting, improbable industry, and the customer (business owners and employees) and consumer matter most. I take calls from everyone all the time. Whether it’s a single store owner, a major vape shop chain owner or a Naked 100 user. We want to personally interact with all of our customers.”
The vapor market is always evolving. Manabat explains that in order to keep up with market changes, the company needed to continue to interact with it on a real level. It wasn’t going to let its success be the catalyst to its failure. The company doesn’t have a big fancy booth for shows or flashy labels that confuse customers. “We aren’t out to be something we are not,” says Manabat. “We are here to make a difference and help our customers help their customers become successful in accomplishing their goals.”
By early 2016, sales for the Naked 100 brand, with its simplistic approach and grassroots marketing, began to skyrocket. While other companies were producing flavors with multiple complicated layers—such as vanilla, graham cracker, marshmallow and strawberry aged in a bourbon barrel—Naked was making flavor profiles that “are more like music in the background,” says Manabat.
“In the early days of the industry, 2011, 2012 … flavors were more simplistic. We wanted to get back to that. We wanted to start with the concept of what vapers were looking for, and, I think, with a Naked 100 flavor, for example, it is less abrasive in day-to-day use … it is much more conducive to everyday use than a lot of other e-liquids.”
Finding the right flavor combinations can be challenging, according to Manabat. He says that while the fruit flavors category is broad, the actual number of fruit flavors that are vapeable is much lower. Finding these vape-friendly fruits helps Naked 100 create e-liquid flavors that stand out to consumers. “There are only a very small number of fruit flavors that break down and vape in a palatable way,” he says. “These are the flavorings we focus on. We want every experience with a Naked 100 product to exceed consumer expectations.”
Helping consumers understand what an e-liquid flavor is was also a goal of Naked 100, according to Manabat. He says that the names and labels of Naked 100 flavors clearly state what they are, and the main flavor component is easily recognized. “There is nothing obtuse about Naked 100,” he says. “What you see is what you get.”
Survival skills
Currently, USA Vape Lab, like most e-liquid manufacturers based in the U.S., is fighting for its survival. Manabat says that 80 percent to 85 percent of his day is centered around the company’s mission of submitting premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration (FDA).
“Things are a little hectic around here as we go through the PMTA process … getting together the data. We are approaching it at full force,” says Manabat. “We have been preparing for this since we started, and in 2017, preparations really came into full gear.” The FDA’s PMTA deadline is May 12, 2020. Any products on the market that do not have a submitted PMTA by that date will be removed from the market.
Manabat says USA Vape Lab was waiting on the final guidance from the FDA, and, in his opinion, the challenges are quite profound. “It is this intersection of a small business undertaking a large business effort. It is difficult for small companies because we don’t have the expert skillset, the subject matter experts, the longitudinal history, the scientific backing and fundamentals of Big Tobacco or Big Pharma … we have our partners, and they are excellent and determined, but the challenges are gigantic.”
Manabat explained that the challenges of completing the PMTA and compiling the required data is one factor; however, the challenges outside the scope of submitting a PMTA are also growing with great amplitude. “Outside the PMTA, one of the more difficult things to navigate is that while we have a process for the PMTA, we have other forces at play altering the landscape,” he says. “For example, youth access; there is a lot of that in the media now, and it has a relationship to the PMTA … what we do today, we will have to explain why we did it that way tomorrow.”
Manabat says the issues faced by USA Vape Lab are going to be similar to what all small companies attempting to survive the PMTA process will face. He believes companies can succeed through these issues; however, they need to realize it is going to be a long, arduous process.
“We can confront and succeed against these issues, yes … but the PMTA is going to be difficult … the methodology of how to approach it. Our industry must explain to the FDA who flavored ENDS [electronic nicotine-delivery system] products are for and what they can provide users. What is going to be even more challenging is explaining and confronting these other forces that are shifting and evolving: public perception, legislation, legal action … there is just so much going on outside the PMTA process agenda.”
The best advice Manabat could offer small companies attempting to get a PMTA authorization is to take the time to build a relationship with the FDA. A company isn’t going to be successful if it challenges the regulatory agency every step of the way, he says.
“You have to interact with them in a professional, meaningful way,” Manabat explains. “You aren’t going to be the FDA’s best friend, but you need to have a relationship with the federal government for any consumer goods market. There are many companies that will not and cannot do the PMTA, but the ones that do must understand it needs to be a working relationship; it’s a robust process.”
In the end, Manabat says that USA Vape Lab is just a small company that cares about its employees and its customers. The company is huge on advocacy for the industry and will continue to show its support. Manabat says this is important because USA Vape Lab “owes it” to the other small vapor businesses seeking a PMTA. “We have to at least give it our best shot,” he says. “We want to be known as a company that did things the right way and blazed the trail for other companies to find success.”

Timothy Donahue
Timothy S. Donahue is the co-founder and managing editor of Vapor Voice.
Tim spends much of his time on the road, attending conferences and interviewing industry representatives.
His networking skills, work ethic and quick mind are valuable assets to our diverse audience.
September 1, 2019
Living Legacy
Legacy Vapors is a place where people can learn about vaping in a friendly, helpful environment.
By Stephanie Banfield
After experiencing a series of challenges and setbacks during their own individual quests to quit smoking combustible cigarettes, a pair of longtime friends made it their mission to prevent others from encountering the same struggles they had faced by starting their own business. Together, they opened a vape shop whose primary focus is providing superior customer service and assisting patrons with their search for a product that will finally permit them to kiss their cigarette smoking habit goodbye for good.
Founded in 2014 in Loveland, Colorado, USA, Legacy Vapors offers premium e-liquids from manufacturers across the country, an extensive array of hardware devices ranging from rebuildables and refillable pod systems to temperature control mods and sub-ohm tanks, as well as a sleek and sophisticated tasting bar where customers can sample products, and a modern lounge area that provides the perfect place for them to enjoy their purchases. Vapor Voice caught up with Legacy Vapors owner Daniel Garcia to discover what drives his continual efforts to further develop his business—and to find out how his pursuit of passion has paid off as the company edges ever closer to celebrating its fifth anniversary later this year.
What attracted you to the vapor industry?
In early 2014, my business partner, Brenner Brightbill, was living in southern Colorado, and I was living in Southern California. We had met in college in northern Colorado and had kept in touch ever since. Both of us were working in different capacities for large corporations over the years and had been looking for an opportunity to strike out and be our own bosses—and we both wanted to end up back in northern Colorado, closer to our families. Legacy Vapors was the answer.My business partner and I had both used vaping to help us quit smoking cigarettes. We both had gone through the progression from cigalikes to eGo style devices and finally on to sub-ohming. Even though at the time we lived in different states, we both had similar experiences at the vape shops that we had been visiting. Most of the shops that we had been to were far from helpful when we had questions, and we both felt like we had taught ourselves all about the intricacies of vaping. At that time, there was one small vape shop back in our hometown that had a small selection of eGo batteries and a handful of flavors. Since we both had been looking for an opportunity that would take us back home to Loveland, we quit our jobs and set out to open our shop.
What sets Legacy Vapors apart from other vape shops?
We’re all about taking care of our customers and making sure that they have a great experience every time they come in. We want each of our customers to feel like they’re the most important person in the room—because they are! We founded the shop with customer service in mind and have continued to keep customer service as a top priority throughout the years. There are a lot of great vape shops around us and a lot of smoke shops that sell vape gear, so our in-store experience always has to be on point.
What’s your experience within the vapor industry and how has your business changed?
The vapor industry has been an absolute blast to work in! I’ve gotten to meet some amazing people from all over the place. I’ve seen a ton of growth within the industry, and our shop has definitely grown and changed. Industry trends and regulations have driven continual change over the years. When we opened, we only had one display case, a couple shelves of juice and a tiny one- to two-person tasting counter. With the growth of the business, we’ve remodeled to add a larger tasting bar and more display cases, and we’ve covered a couple of walls with juice shelves, redecorated a few times and put together a nice lounging area. The business looks completely different, but we’ve made sure to stay true to our original goals of providing high-quality products with the best customer service.
What is your greatest accomplishment so far?
I think our biggest challenge and greatest accomplishment are the same thing. I remember a scary statistic that something like 90 percent of small businesses fail within the first five years. It may not be that high because 96 percent of statistics are made up on the spot, but it was still a pretty scary number. We’ve seen a bunch of vape shops in our area open and then close a couple of months or years later. We’ll hit our five-year anniversary in a couple of months and have no plans of going out of business anytime soon. Keeping ahead of the trends in the market and the changing regulations, maintaining a high-quality customer experience and building the business provide daily challenges.
What impact do regulations have on your business?
Regulations are always on my mind. To build a lasting business, we have to stay in compliance, and we have to stay on top of all of the continuous changes in the regulations. We made a bunch of changes in the shop back in 2016 to make sure we would stay in compliance when the U.S. Food and Drug Administration (FDA) deeming regulations began going into enforcement—and we continue to change with the times. Adding warnings to all of our advertising material began last year. We have always worked with e-liquid manufacturers that are dedicated to working through and surviving the enforcement of the FDA regulations. The industry in the U.S. has been stunted by regulations. I read an article about a device from Joyetech that got a UL certification, and it can’t be imported into the U.S. because of the halt on new products in the FDA regulations.
What effect, if any, does the legalization of recreational cannabis in Colorado have on your business?
Recreational cannabis was legalized in Colorado prior to the founding of Legacy Vapors. Because we opened just a few months after legalization in Colorado, we decided to keep our product offering unaffiliated with that industry. Most consumers at the time seemed to confuse vaping with cannabis use. Since our focus was to help people get off of cigarettes, we decided to let the smoke shops carry the devices for cannabis use while we focused on killing our niche and stuck to the nicotine-delivery systems. We decided it was more important for us to build an identity as a vape shop. In the years since, we have seen less consumer confusion and now only get asked about cannabis by tourists. We have started carrying a very small selection of hardware that can be used for vaporizing herbal concentrates, but we have stuck to our identity and do not carry any products that are used in combustion. We recently added vapeable CBD [cannabidiol] products to the store, and we are expanding that category quickly as well.
Where do you see the future of the vapor industry?
The near future of vaping is going to look pretty similar for hardware—minor advancements and changes but nothing drastically new. We may see some more variations on TC mods and different pod systems. The smaller sub-ohm devices and pods are getting more popular. The longer-term future of vaping is being shaped by the regulatory process. I think there is still a fair amount of uncertainty with how it’ll all look in five or 10 years. The FDA could push forward with their regulations and push a nationwide flavor ban. Although the statements from [former] FDA Commissioner Scott Gottlieb look hopeful for vape shops, we’re still in the early stages, and 10 years is a long time from now. I’m hopeful that the industry will continue to make its voice heard politically and will adapt to the times as we get more heavily regulated.
What advice do you have for other vape shop owners?
I’m going back to customer service on this one. Most vape shops are small retail boutiques. We don’t have big-box stores and self-checkout machines. The personal touch and the sense of community are integral to our success. My advice is to care about your customers. Take care of your customers and build a community. It’s also extremely important that we all pay attention to regulations and take an active role in shaping the future of our industry. We all need to work together as vaping advocates and activists. Get involved in any way that you can.
What is the ultimate goal of Legacy Vapors?
I think that, like most small-business owners, I want to make a positive impact on the lives of the people in my community and be free to live and work at something that I’m passionate about. We named the shop Legacy Vapors because we wanted to build a future for ourselves and help the people of our community achieve their goal of switching from cigarettes. Getting off of cigarettes was one of the hardest things I ever did. It changed my life when I switched to vaping, and I wanted to be a part of that change for others.
April 30, 2019
The big vape
Seven quick questions—and answers—about retailing vapor products
By George Gay
The London Vape Co., which was formed in 2014 from an online business, now has four retail stores in London, where it employs 15 people, but it is looking this year to expand its presence to 10 stores and is always on the lookout for talented people. It might look to establish itself outside London and even overseas, but, no matter, the “London” in its trading name is not always used. It is known also as The Vape Co. and just Vape Co. Managing Director Anthony Mixides attributes the firm’s success to customer service, the up-to-date advice that it delivers and the fact that it offers the latest vapor products.
“We sell e-liquids, starter vape kits, advanced vape mods and accessories, as well as offering some services, such as coil building and classes,” he says. “We have a company that manufactures our own Vape Co. e-liquids and supplies an array of popular e-liquid and hardware brands. However, mainly we stock the popular—but also the lesser-known—mods, tanks and liquids that we find meet our high standards. Our own range of e-liquids comes in 38 different flavors ranging from fruit-based to tobacco flavors.”
Vapor Voice: How do you add new products to your range?
Mixides: We monitor the marketplace for new product releases and listen to customers’ requests. We stock two categories of liquids: house and guest. Our guest brands are constantly rotated, though if one such brand becomes very popular, we add it to our house list and do our best always to have it in stock.
Are your employees involved in this process?
Most definitely. They are all avid vapers; they follow the market very closely and are constantly monitoring what is good and what should be brought into the company. In fact, our mods and tanks generally follow the trends and recommendations of our staff and customers. We have new e-liquids arriving nearly every day, and these are generally tested by our people, who provide feedback to my area managers. We try to avoid having too many overlaps before ordering, and now we are trying to look only at companies that comply with [new EU Tobacco Products Directive] requirements.
Do you offer the same products from each of your stores?
Products do vary depending on store locations because some products do well in one store but not in others. The moment we realize this is the case, we quickly move the products in question to the store selling the most of that particular e-liquid or hardware. With e-liquids, we do have store exclusives to encourage customers to visit our other branches. But, on the other hand, we have had one previously exclusive e-liquid that was so popular in one branch that we will be rolling it out to other branches soon.
Is the design of your stores similar in each case?
The latest two stores we have opened have the defined look and feel we will carry forward to our new store locations. This design is important because it has given our stores and our company a far more professional look. And that is a look—and feel—that really reflects what we are about: up-to-date advice, latest vape products and great customer service. We want our customers to feel comfortable when entering any of our stores.
Have your sales been increasing?
Since we started we have seen a growth in sales month on month. We have a strong repeat-buying customer base and new customers every month. Our loyalty points system really keeps customers with us, and we sometimes have a problem maintaining stocks. Eighty percent of our business comprises e-liquids. For the everyday vaper, our own liquids are the most popular, but more experienced vapers tend to go for our American brands of gourmet liquids. Our most popular device has to be our own starter kit because we see a lot of people looking to quit smoking and that is the best device to get them started.
Who buys from you?
The average age of our customers is 25 to 50, with approximately 60 percent of them men and 40 percent women. We find that a lot of people are still unsure about the world of vaping. Some are novices, and for them we offer a “try before you buy” [program] where we explain the different devices that are available and advise them about what we think are the best combinations of device and flavor to help them quit. We have even had maybe one or two customers who were nonsmokers, but that’s not something we have seen regularly.
November 24, 2016
All-American vape
Seven quick questions—and answers—about marketing U.S. e-liquids in Germany
By Stefanie Rossel
ASA Europe is a pioneer in bringing American e-liquids to Germany. The company, which has been exclusively distributing U.S. e-liquid brands in Germany since June, has its head office, warehouse and a vape shop in Mainz, Germany, near Frankfurt. ASA Europe is a wholesaler for vapor products and runs an online shop. In mid-September, it opened another vape store in Cologne; further shops are scheduled for launch in Frankfurt, Wiesbaden, Mainz and Berlin in the coming months. Vapor Voice spoke with Erdal Zorsoeker, the company’s managing director.
Vapor Voice: You only recently entered the vaping business—how did this come about?
Erdal Zorzoeker: We started out with a number of shisha stores in the Rhine-Main area. Germany is a very strong market for water pipe smoking; interestingly, shisha and vaping are closely related in the mindsets of German consumers. Twenty to 30 percent of our shisha customers also asked for vaping devices, so we decided to give it a go. We think that vaping is the market of the future and view it as a serious competitor to combustible cigarettes.
You are focusing on supplying German vapers with U.S. brands only. Why?
German consumers are very much interested in U.S. vape brands. In contrast to German e-liquids with their rather classic flavors, juice varieties from the U.S. are much more unusual and complex and often consist of blends—coming, for example, as creamy-milky flavors, such as our “Muffin Man” or “Milkman” flavors, which are currently particularly popular with advanced vapers. Furthermore, American brands have a certain image: In pre-regulation times, there was significant demand for larger e-liquid bottles, to which U.S. brands catered with their 180 mL bottles. Altogether, I’d say that the U.S. vape market is three to four years ahead of the German market.
Talking about regulations, is it difficult to sell U.S. brands in the German market?
It is complicated to import liquids containing nicotine into the EU, and it is also very expensive due to high customs duties. With our partner US Vaping, this is no longer an issue: US Vaping represents some of the leading U.S. e-liquid manufacturers and has set up a production site in Paris, France, where they manufacture original U.S. brands flavors in compliance with EU regulations. From May 20, 2017, the revised Tobacco Products Directive [TPD2] will require all e-liquids to be sold in the EU as consumer products to have a maximum strength of 20 mg/mL; nicotine liquid containers can be no larger than 10 mL for refillable and 2 mL for disposable e-cigarettes and must be child- and tamper-proof. Health warnings, instructions for use, a list of all ingredients, the specific product’s nicotine content, and information on addictiveness and toxicity must be displayed on the packaging. We expect to see market consolidation among e-liquid manufacturers in the EU after May 2017; there will be more emphasis on the quality and processing of the flavors. Currently, vape stores are allowed to manufacture their own liquid in small-scale production; this won’t be possible anymore after TPD2 has been enforced.
So which products do you have on offer, and who are your customers?
We offer a range of vaping devices from InnoCigs, Joyetech, Smok, Eleaf, Uwell and others and have recently intensified our cooperation with manufacturers of premium U.S. hardware. Our value-for-money segment retails at around €20 ($22.41), but most of our hardware are high-quality devices that cost around €80 and are suitable for use with the premium e-liquid brands we offer—with an 80:20 ratio of vegetable glycerin and polypropylene glycol, their viscosity doesn’t allow for use in a lower-quality vaping device. As e-liquid brands, we carry such well-known U.S. names as Mad Hatter, One Hit Wonder or Junkie Juice with various flavors and nicotine contents. We are in negotiations with U.S. manufacturers outside the consortium who work in a similar fashion, i.e., with production facilities in the EU, so our e-liquid range is growing. Liquids with a nicotine content of 0 and 3 mg are among our best sellers, whereas those containing 12 or 18 mg are less sought after. Many of our customers are ex-smokers who want to quit with the help of vaping, but there are also newcomers who prefer non-nicotine juices. Many also switch from shisha smoking to vaping.
Do you also have a house brand?
Our house brand is currently in the making. We presented some prototypes at the InterTabac trade fair in Dortmund, Germany, this September. The flavor styles are based on popular shisha molasses brands; we see a significant market for such e-liquids in Germany since the country is such a big shisha market. We are planning to launch four proprietary brands for Germany for different price segments, which will be independent from our U.S. brands. One of them, a premium brand, is supposed to be introduced in the States, too, building on its German image. Following the launch of the [U.S. Food and Drug Administration] deeming regulations, we are working on getting our house brand ready by November, the date after which all new e-liquids need to submit a premarket tobacco product application.
In mid-September, you opened a new store in the city center of Cologne. Can you share your experience so far?
Cologne has a lot of potential for vaping. Eighty to 90 percent of our customers are first-time vapers, though, and have only little experience with vaping devices, hence a lot of explaining is required. Finding adequate sales staff turned out to be a challenge, since vaping is a complex field with rapid developments. Sales staff must be dedicated vapers and stay informed. We are also still experimenting with the right hardware for tasting our liquids and are thinking about installing a test bar.
How do you promote your stores and products?
Mostly through social media. We are planning to start in-store activities soon and will stage a competition at next year’s HookahFair meets VaporFair in Frankfurt, the leading exhibition for vaping in Germany.
November 1, 2016
Monkey business
Seven quick questions—and answers—about retailing vapor products
By Timothy S. Donahue

After smoking combustible cigarettes for more than 18 years, Kris Zarate wanted nothing more than to quit. After discovering e-cigarettes, he realized that they truly did help people stop smoking. If vapor worked for him, he figured, then these new products could work for anybody looking for an alternative to cigarettes.
This is a story told time and time again in the industry. Ask vape shop owners why they opened their businesses and the most common answer will be to help people quit smoking cigarettes. In early 2016, the business ratings website Yelp listed 10,591 U.S. companies that identified as vape shops. That amounts to nearly 2.7 vape shops for every bowling alley in the nation and about four for every comic book store. That’s a lot of ex-smokers helping current smokers find a less risky way to consume nicotine.
Zarate is now the owner of Vape Monkeys, with two locations in Chicago, Illinois, USA. He says that taxation is as much a threat to his business as are the U.S. Food and Drug Administration’s (FDA) new regulations. In Pennsylvania, for example, a recently passed revenue package would put a 40 percent wholesale tax on e-cigarettes, liquid cartridges and vapor devices. In Chicago, vape shops must apply not only a 10.25 percent sales tax to vapor products but also an additional $0.80 per “product unit” and $0.55 per milliliter of vape-able liquid. This means a $10 10 mL bottle of e-liquid costs $17.33 after taxes.
“These tax policies are forcing shop owners to sell vapor products for more than it costs for someone to just keep smoking cigarettes,” says Zarate. “We need to incentivize quitting cigarettes; making cigarettes less expensive than e-cigarettes goes against improving overall public health, which is the stated goal of the FDA.”
It is essential that vape shop owners be realistic in a post-FDA regulatory environment, according to Zarate. “Businesses need to focus on continuing their mission and stay true to their goals,” he says. “This will help define your business as the industry moves forward.” Vapor Voice recently sat down with Zarate so he could answer seven quick questions on the possible future of Vape Monkeys and share his outlook on the future of the vapor industry overall.
Vapor Voice: What motivated you to get involved in the vapor industry?
Zarate: Vapor products were the only method that worked for me. I quit after being a cigarette smoker for over 18 years. I was working a trade show with my previous job, and I saw people walking around and coming by my booth vaping. I was very curious, so I visited a company that was selling vapor products to get more information. I instantly realized this was a great industry to be in to help smokers kick the habit.
What is the Vape Monkeys philosophy? How do you approach current smokers looking to switch or the newcomer just learning to vape?
The Vape Monkeys philosophy is simple: Help people quit smoking cigarettes and introduce them to what we see as a better option. How we teach our employees to approach newcomers to the industry is to first explain the benefits of vaping compared to traditional cigarettes by comparing what you’re actually inhaling into your body. With all of our customers we take the time to explain the proper and safe way to use the products they purchase. If they ever have any questions, we are here for them.
Have you noticed any change in business since the deeming regulations deadline, August 8?
Yes, I have. I’ve noticed a huge drop in sales and customers coming into the stores. This can be attributed to the new FDA regulations, false information by writers paid by big tobacco companies and a forced tobacco tax in our county. These changes were only put out to scare current vapers and those looking to quit smoking, and to raise the taxes on nontobacco products and e-liquids. States are losing money as more people quit smoking, and they want to make sure they don’t lose that revenue stream.
What needed to be done to get ready for the FDA’s deadline, and how do you anticipate moving forward?
There were a lot of changes that needed to be done at the stores to get ready for the FDA’s deadline. I had to remodel all of my locations to meet the regulations the FDA is enforcing for shop owners. All I can really hope for moving forward is to keep my business alive and try my very best to give newcomers and experienced vapers quality products, and help them keep vaping. We have to be proactive in helping end the deaths caused by cigarettes and get the word out that vaping saves lives.
How do you seek out products for your shop, where do you source information on the latest hardware and e-liquids?
Every shop owner has their own methods of picking products to bring into their shops. With hundreds and thousands of hardware and e-liquids on the market, it does get overwhelming sometimes. With hardware, I do a lot of research, reading reviews and asking people what they think about the product before I make any purchases. I strongly believe in giving my customers quality products first. As for e-liquids, I am very picky about what I actually sell to my customers. I might use social media to check out the latest products, and customers request some products as well. Once I get samples from e-liquid companies, I personally try them first. Then my employees and customers try them out so we can get some feedback. I also try to not stock flavors that taste similar to what we already have available. This gives everyone a wide variety. Customer input is very important because everyone has a different palate when it comes to taste.
Where do you see the future of the vapor industry?
In my opinion, the future of the vaping industry is all about growth. This year, the vape industry has hit a lot bumps in the road, from the FDA and state regulations, taxation. However, vaping is still much safer than smoking cigarettes. All that vapers, shop owners, e-liquid and hardware manufactures can hope for is improving the industry by educating consumers and continue research that produces hard evidence that vaping is a safer alternative to smoking.
Any advice for fellow vape shop owners stressing over the future of their businesses?
My only advice to fellow shop owners is to just hang in there, be positive and don’t give up too soon. If this is your first and only business, remember that every business faces challenges. The vape industry isn’t going anywhere and will continue to grow. Stay strong in your mission to save lives.
August 1, 2016
Stellar performance
Seven quick questions—and answers—about retailing vapor products.
By Timothy S. Donahue
Carrie Brown and Stephen Clemons are former smokers who quit by using e-cigarettes. According to Mitch Zeller, director for the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products, they don’t exist. Zeller recently publicly called successful switchers “hypothetical” individuals.
“I want everyone to know they can feel better and quit smoking successfully using vapor products,” says Brown. “I’ve always wanted to be my own boss but needed something I was passionate about, and helping people quit doing something that is nearly impossible quickly became that passion. I quit my job, drained my 401(k), and here we are.”
Brown and Clemons now own three popular vape shops in Charleston, South Carolina. They are exactly the type of entrepreneurs the FDA’s new regulations for the vapor industry could put out of business. “The Planet Vape stores and the entire vapor industry have been anticipating the new FDA regulations for quite some time now. I don’t think anyone can act too surprised,” claims Clemons. “Where it stands now, brick-and-mortar vape shops will have their choice of contracting out their own brand, and/or selling premium brand e-liquids.”
Exactly how the FDA regulations will impact small businesses is on the minds of every vape shop owner. “Make sure you are truly in compliance at all times,” Clemons says. “Do your homework on manufacturers so you can be reasonably assured you are building lasting business relationships.” Vapor Voice recently sat down with Brown and Clemons so they could answer seven quick questions on the possible future of their stores, as well as their outlook on the future of the vapor industry overall.
Vapor Voice: What motivated you both to get involved in the vapor industry?
Brown: After smoking for more than 20 years, e-cigarettes worked to help me quit smoking. It was difficult to find juices I enjoyed vaping, so I started mixing my own and found I had a knack for putting flavors together. I started selling it to friends, then selling the juice online, and it was loved. I tried turning every smoker I knew into a vaper!
Clemons: By the time I was 15, I was smoking a pack a day. I tried my first e-cigarette in 2011. It was a cigalike style that I purchased from a local tobacco store. I think I gave it an honest effort for about a week but went back to smoking because it just didn’t satisfy the craving. In 2013, I found South Beach Smoke online and haven’t had a cigarette since. That same year I got involved with International Vapor Group [IVG] with a $1,000 investment that I scraped together. My company, SC E-cigarette, began distributing IVG and many other vapor products in the Charleston area and beyond. I partnered up with Carrie Brown, the founder of The Planet Vape, in January of this year. We both feel very strongly that vaping has saved our lives, and we want to help people achieve a smoke-free lifestyle.
How has Charleston responded to the Planet Vape concept since its opening in 2014?
Brown: Charleston was a bit behind the times compared to some other cities. We have continued to bring new ideas and new flavors with our personal touch. We decided to open our shop in Goose Creek [a small city just outside of Charleston] because we had such a large [U.S.] Navy customer base. We knew they would enjoy a place to call home—a place to hang out and socialize while doing something we love.
Clemons: The Planet Vape Ultra Lounge in Goose Creek boasts over 3,000 square feet, including an entertainment area with pool tables and arcade games. We carry a huge selection of products and a constant stream of events like cloud competitions. We now operate three retail locations and maintain a strong wholesale business as well. We have a great team of 15 dedicated vapers on staff who really make this company what it is today. Additionally, SC E-cigarette enjoyed a 40 percent increase in sales in 2015 and is projecting at least the same increase in 2016.
What most concerns you about the FDA’s new regulations?
Clemons: Many brick-and-mortar vape shops are complying with the regulations already, for the most part. No shop that I know of is selling vapor products to persons under the age of 18, for instance. I think most vape shops that are producing their own e-liquid will be forced into making some big decisions. Basically, they will have to determine whether or not they can survive without the generous profit margins that come from manufacturing, keeping in mind the uncertainty of the availability of quality devices after the 24-month compliance period ends.
Brown: I think many in our industry underestimate the resources of the large device manufacturers based in China. I would be surprised if companies like Sigelei, Kanger and Aspire are not prepared to submit hundreds of premarket authorization applications. One of the benefits of regulation will be an increase in the quality of products being imported and sold. I also anticipate a consolidation period, not only in devices but in e-liquid manufacturing here in the U.S.
So, everyone needs to start selling premium e-liquids?
Clemons: Yes. This isn’t a drastic change in the industry, however. If not exclusively premium, wisely, most shops that I visit have a large selection of premium brand e-liquids. However, the perception of being a premium brand does not necessarily mean, for instance, that they will survive the premarket authorization application process. Fortunately, there are several of these premium brand companies who have already completed various stages of the application process, but some are farther along than others.
How do you see the vapor regulations impacting The Planet Vape stores?
Brown: The impacts of the FDA regulations on The Planet Vape will be the same as they are on any other responsible vape shop in the area, and there will be impacts. The Planet Vape, for instance, manufactures its own brand of e-liquid, as well as several other brands. While we have seen and heard estimates of the costs associated with the premarket authorization process, we have yet to do a cost analysis per SKU. We are glad the FDA has included language indicating that it will be helpful to small businesses, but remain skeptical about how this will translate financially. However, we have never been afraid of hard work, and if at all possible we will continue manufacturing our e-liquid.
Clemons: We have also begun the beta phase of our own mechanical mod parts department. The good news is that we have 24 months of business as usual because we are fully compliant as a retailer and are already carrying many premium e-liquid brands that we are confident will gain the FDA’s approval. We are also investigating other revenue streams that will not only increase our sales but will enhance our appeal in the vapor community and the community at large.
What do you see as the future of the vaping industry?
Clemons: Imagine the year is 2021. It’s one year after the vapor wars concluded and the final big tobacco company has gone bankrupt. Studies have not only shown that there are no harmful effects from vaping zero-nicotine e-liquid, but that most people who do use nicotine in their e-liquid do so at 1 mg (or .01 percent by volume). The studies have also shown that the total number of people vaping has not increased overall because of the great number of people who have quit smoking who have also quit vaping. Because of the rise of vapor, the number of smokers has diminished to an unmeasurable figure. The final conclusion of vapor studies is that vaping saves lives. Now, the above is purely my imagination going a little wild, but is it that far off? Maybe the date should be 2026.
Any advice for your fellow vape shop owners stressing out over FDA regulations and the future of their business?
Brown: Vape shop owners need to be pragmatic in a post-FDA regulatory environment. We also have to remember that the truth is on our side, but if we don’t stay in business long enough for all the positive studies and obvious benefits of vaping to be published, then the big tobacco companies will prevail. So, stick to your guns. Be realistic about your own manufacturing and financial capabilities, focus on what you do well and be true to the very nature of your vape identity. This will help define your business in the near future, when customers might find it difficult to differentiate one shop from another.

July 1, 2016
Got juice?
Seven quick questions—and answers—about e-liquid
By Timothy Donahue
Tim Wilson
Searching for the right e-liquids to sell in your vape shop can be a daunting task. Vapor Voice spoke with Tim Wilson, general manager of the Vapor Lounge and three Madvapes stores in Asheville, North Carolina, USA. Combined, the four locations sell between 2 million and 2.4 million milliliters of e-liquid per year. Wilson shares how he and his staff go about finding the right juices for his customers.
Vapor Voice: Other than house brands, how many brands of e-liquid do you carry?
Tim Wilson: We carry around 30 premium lines, and that lineup is always changing. We drop lines and bring in new ones monthly, based on performance. Some of the most popular choices include brands such as Ripe Vapes, Smax, Teleos and ANML.
With so many options available, is it challenging to find brands customers will enjoy?
The most challenging part is peoples’ fickleness, the constant desire for something new and the die-hards who only vape the same flavor. I am constantly changing flavors myself, so finding decent high-quality liquids at a good price is challenging. I try to be as accommodating as possible. I’ve brought in lines or particular flavors at a customer’s recommendation. It is rare that we do an entire line anymore. We generally just pick flavor combinations that are not currently present in our lineup.
How do you select the outside e-liquid you carry?
Selecting brands is an involved process. Do customers like it? Do I like it? Do my employees? Will it sell? If it doesn’t answer yes to three of those questions, it’s a no-go. Social media, vape groups, customers and employee feedback are the best ways to find something new.
What qualities you are looking for in the e-liquid you provide customers?
Being produced in an ISO-certified lab is important, as is quality of ingredients (no dye, smooth nicotine) and, most importantly, taste! The wholesale and suggested retail price, along with packaging, letting regular customers try a sample and getting their feedback are vital as well.
Is your staff involved in e-juice decisions?
I make it a point to have staff try samples. If they like it and are excited about it, they are much more likely to sell it. The e-liquid company itself is important too, their business practices and how they treat their customers. I’ve refused to carry or stopped carrying a brand because of how they treated my employees or myself during our interactions. Also, the company’s willingness to assist in marketing—free giveaways or promo material—factors into my decision to carry their product.
So supplier relationships are important?
You have to build relationships with e-liquid manufacturers and distributors. Having them give you some promo material for free, such as 120 milliliters for a giveaway or competition, can do a lot to drive attention toward your store and the products you carry. Everyone likes free stuff! We also definitely try to stay away from packaging that may be viewed as controversial or seen as possibly marketing to kids.
What keeps a brand on your shelf?
Liquid is what brings people in on a regular basis, so it is one of, if not the most important thing in your shop. Yes, house brands are important, and you will have people who only vape those products. However, if you limit yourself to only those customers you are missing an opportunity to cash in on the people who don’t care to spend $20–$30 on a 30 milliliter bottle. The quality of liquid and taste is the most important thing when selecting liquids to carry, but don’t discount the draw of really good packaging and a top-notch marketing team. Bottom line: It’s got to taste good.

January 1, 2016