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Thread: Want to start a vaping business - What do I need?

  1. #1
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    Want to start a vaping business - What do I need?

    Hi guys,

    I want to start an online vaping business.

    It's not really what you think. I'm perfectly content with my day job.

    But I do want to make my company a legitimate competitor to all other online shops like Juicewhore, Vapeking, VaporEyes etc.

    The purpose: To ensure that my friends and relatives that I recommend vaping to get the right start.

    I'll have a limited range; say two or three mods, and two or three tanks. And about 5 ejuices - one of each flavour category.

    My prices will be the exact average of what reputable stores like juicewhore, vapeking etc have. I might make a bit of profit, but any profits I make will go towards my customer's Christmas present fund.

    The end goal however is to release my customers to other vendors when they're in the hang on things.

    I know this shows a little mistrust of other vendors, but its got nothing to do with them. I highly respect those vendors. It's just that my smoker friends and relatives are the very cautious kind (the irony that they smoke), and I think if they were able to purchase from me, they'd be more inclined to start. Ive done this already via face to face (essentially me buying the stuff for them and them paying me). But I realize now that by doing it this way, they never learned to get the stuff themselves. I did buy nicotine for a couple of people, but they were literally blood related.

    What do I need to start up my business?

    PS: I don't intend to market or sell to the general public, but I do intend to be found through a Google search.

  2. #2
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    I think it's the wrong reasons to start a business, though I applaud the altruistic intent.

    You need to set up a commercial on line store. To be able to take money on line you need the components to do that safely for your customers. You need security certificates if you want to take credit card on line, and you need a good understanding of how to run the website securely. There are people who can set this up for you and design the site, but they charge many thousands of dollars even for a simple site.

    Next you need suppliers of authentic equipment that will give you a good price. The problem here is that you won't be able to come close to a lot of the good on line vendors in price because they have the advantage of buying in volume and get much better price breaks.

    You'll need an ABN, will have to declare your earnings, which have to be done properly so you need to be an accountant or employ one. You do not have to charge GST separately unless your turnover is over $70K, however equipment you import will have to have GST paid on it so you will have to declare that with customs, and may need to go through proper import procedures at some point, such as large volume purchases to get volume discounts to match Australian retailers.

    Next, because this is not your main work, customer service elements like when you can post packages and be there to answer questions and deal with problems is all going to suffer. While close friends and family are likely to be very understanding of this, friends of friends and other people who might get recommended to your site may not be. They might be better served by being directed to a vendor who excels at customer support.

    You see where I'm going with this? The only reason to go to all this trouble and expense is if you want to own a small business and run it for the larger proportion of your income, and have a large amount of your work day to put into it.

    What I'd actually recommend you do is that you set up a simple website that makes clear recommendations about how and where to start, what equipment to buy, what vendors are good to use, and so on. Give links to products or vendors, and maybe have a chat board or forum where you can be contacted with questions. Above all, keep it up to date. This is not a new idea, but many projects like this suffer as time goes by and they stop being relevant because there's a bit of work in keeping them going.
    Last edited by fabricator4; 09-07-17 at 03:01 PM.
    Noe, gert, PurpleVapes and 4 others like this.
    Chris: Tobacco free since 17:00 15th March 2013.

  3. #3
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    Quote Originally Posted by fabricator4 View Post

    What I'd actually recommend you do is that you set up a simple website that makes clear recommendations about how and where to start, what equipment to buy, what vendors are good to use, and so on. Give links to products or vendors, and maybe have a chat board or forum where you can be contacted with questions. Above all, keep it up to date. This is not a new idea, but many projects like this suffer as time goes by and they stop being relevant because there's a bit of work in keeping them going.
    Thanks,

    I might do this instead.
    gert, Jemor and staceman101 like this.

  4. #4
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    Here's some other considerations in running a business:

    How are you going to deal with warranty issues? If people have problems with a device, you will be out of pocket for the replacement, at least until you manage to get it sorted with the supplier who is probably in China. What if there is a batch failure: a lot of these mass produced devices can have batch problems caused by using a cheaper component, trying to cut corners on production, or supplier quality issues.

    How are you doing to deal with someone trying to hack your site? I kind of dealt with this in the first post but it's an important enough issue to mention twice. It becomes critical when you are talking about an e-commerce site.

    Do you need insurance? What if there's a problem with a product and someone holds you responsible? Do you need liability insurance to protect yourself from injury claims or fraud?

    If a product gets lost in the post, can you afford to replace it? How about fraudulent loss claims? You are responsible for the product until it is delivered.

    Sorry if all this is a bit of a downer, but it's better to consider these things before, rather than after. These are the real costs of doing business. It's a trap to just look at what you can buy stuff for and think you can sell it for just (say) 5% over cost. The cost of running a business is a lot more than than the cost of inventory, and this is why Australian businesses can not compete on price with online distributors and warehousers like Fasttech etc.
    Last edited by fabricator4; 09-07-17 at 11:19 PM.
    PurpleVapes, Jemor and staceman101 like this.
    Chris: Tobacco free since 17:00 15th March 2013.

  5. #5
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    Quote Originally Posted by PurpleVapes View Post
    Thanks,

    I might do this instead.
    LOL, I wrote my second message while you were writing this. Good call. It will be good experience if you've never administered a web site before. First thing you need is to purchase a domain name and a hosting service, then you need to decide what software you are going to use...
    gert, PurpleVapes and staceman101 like this.
    Chris: Tobacco free since 17:00 15th March 2013.

  6. #6
    CMB
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    In addition to what Fab said, you need to fund it adequately, you won't make money from day dot and you will get hit with "school fees" so make sure you have a float you are prepared to lose. Also set clear financial goals and bail out points, no point flogging a dead horse and chucking good money after bad, and make sure you factor in compliance costs (accounting etc), many micro businesses tend to overlook this and it can become even more of an issue when it is a sideline project and not your main income.

    I'd recommend talking to an accountant about it, for one you will be pitching your idea to someone else who will look at it from an experienced dollars and cents point of view and secondly they will let you know exactly what you will need to do to run it properly.

    Don't put it in the too hard basket though, at least follow it through and get a plan together, as often it is during the planning stage you will find a better idea.
    giruvian, Fatman, BrianS and 5 others like this.

 

 

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