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TOBACCO BUSINESS INTERNATIONAL
MAY/JUNE 2015
increase the shop’s profitability. Tobacco
products sold well, but the margins were
getting tighter each year.
So Love remodeled and converted about
half the store to vaping products. He added
a tasting bar and engaged an entirely new
crowd.Healso supported loyal smokers who
were trying to quit smoking and converted
many of them to vaping. Education was a
key component and instead of just to selling
them, he empowered his long-time smokers.
“We had many customers who smoked
for decades and were never able to kick the
habit,” Love said. “Patches and gums didn’t
work, but vaping did.The result was that we
gained a loyal following that was appreciative
as well.”
According to Love, vape revenues are
increasing by about 20 percent every month.
As this volume increases, they are devoting
more retail space to vaping hardware and
e-liquids.
“Initially about 20 percent was vape,but now
we’re almost at half and growing,”he said.
Blue Ridge Smoke and Vapor primarily
caters to beginners; sales are equally
distributed between hardware and e-liquids.
They don’t get into expensive mods and
mechanical devices since their customers
aren’t looking for high-end products.
Time For a Change
Pipe Palace in Seattle, Washington
began as an antique shop in 1969. One of
its customers offered to sell custom and
historic smoking pipes, which ultimately
became more profitable than the antiques.
Owner Debbie Hopgood seized the
opportunity and converted Pipe Palace
to a smoke shop. She recently added
vape products, working together with her
manager Lola Dangerzone.
“We recognized these were innovative
products, but had no idea they would
change the industry,” Dangerzone recalls
of the store’s decision to start selling
NJOY products.
Dangerzone says Pipe Palace would like
to offer products that are “hip, cool and
inviting.” Their inventory has shifted to
about 85 percent tobacco and 15 percent
vape products.The percentage of space
devoted to vape products is growing; of
their vape product inventory, e-liquids are
the hottest sellers.
While Dangerzone does not plan to
offer fancy mechanical devices or mods,
Pipe Palace will continue to focus on
starter kits and e-liquids.
Pipe Palace is known for being innovative
and eclectic, with a solid collection of briar
andMeerschaum pipes, lots of t-shirts and,
of course, their staple of tobacco and now
vaping products. In addition to regular
and loyal customers, they also get a lot of
tourist traffic because the shop is located
close to major attractions—the Seattle
Museum and the Seattle Aquarium.
Embracing the Future of Vape
As these examples show, tobacco shops
are well-positioned to segue into VTM
sales. The bottom line? Making the
transition takes time and commitment, but
pays off handsomely for those who make
the investment.
TBI
__________________
Norm Bour is the
founder of VapeMentors,
which offers online
educational programs,
services and resources
for anyone in the vape
space, including vape
shops, online stores
and e-liquid brands. He’s also host of “Vape
Radio,” a podcast series that interviews
the masters of vape and thought leaders
in the vape world. To learn more about
VapeMentors resources, contact him at
norm@VapeMentors.com.