The E-cigarette market is relatively new and very fast growing. Choosing the right wholesale electronic cigarettes is vital to maximise your current and long-term profitability in this burgeoning market sector.
It is naturally tempting to imagine that the path to high profitability is simply to maximise the mark-up between purchase price and sale price while remaining competitive in your area. The electronic cigarettes market is however somewhat more nuanced, requiring careful thought in order to maximise long-term profit and fully capitalise on it’s potential.
The key to profitability is in the forming of a close and lasting, mutually beneficial relationship with a knowledgeable, efficient and reliable wholesale electronic cigarettes supplier as an expert partner.
Not a Typical Market
The electronic cigarettes market is likely to differ in many ways from other sectors with which you may have experience, it has:
- Profitable associated follow-on sales potential
- Huge repeat sales opportunity
- Diverse user base with differing needs and expectations
- Reputation easily hailed or failed
If you wish to serve this market your wholesale electronic cigarettes supplier needs to:
- Have an good understanding of the market and it’s future.
- Stock a complete range of goods, ready for your expanding needs.
- Provide a short supply chain with fast response to orders and enquiries.
- Offer dedicated account support colleagues.
- Provide a competitive discount structure that grows with you
- Give the reassurance of guaranteed goods of consistent quality.
- Have direct, first hand experience with the leading manufacturers in the industry.
You have probably considered using a Chinese supplier of wholesale electronic cigarettes, initially the apparent potential mark-up will seem very tempting. If you have already tried this path you will not need me to highlight the problems that can be associated with that choice:
- Your customers can also purchase at the same rates – they have decided to buy from you because they are looking for better service, range and consistent quality.
- Delivery lead times are far too slow for efficient retailing – you either are regularly sold-out or are over-stocked with potentially dead product lines.
- Product and sales support is negligible at it’s best.
- Import duties & customs delays can be unexpected & unpleasant.
- Quality may be poor and/or inconsistent.
- Products may not comply with EU consumer protection law.
Direct Purchase from Manufacturer
You might also have considered buying wholesale electronic cigarettes directly from a manufacture. The problem with this approach is the large minimum quantity orders that a genuine manufacturer will insist upon, it is poor business to tie-up cash flow and storage space. A fast moving market place like that of electronic cigarettes needs more flexibility than can be offered by a manufacturer to a retailer. Any foreign supplier claiming to be offering normal wholesale quantity deliveries is unlikely to be a true manufacturer in reality – simply an unnecessary link in the supply chain who fails to offer any added-value to the transaction.
The Market to Satisfy
You must have the ability to supply all of the current and future needs of your customers. This must be achieved with every visit the customer makes to your outlet, anything less will potentially lead to the customer (and their associated regular expenditure) changing their allegiance to another vendor.
A novice electronic cigarette user is looking for a simple, easy to understand path from tobacco cigarettes – it is very easy to sell this customer a second rate product, even at a high price – however doing so is very short-sighted. The average smokers is accustomed to spending around £50 per week on cigarettes, if they are supplied with a product that replaces that need for expenditure on cigarettes they become a customer with £50 per week spare disposable income! In reality a regular electronic cigarettes user will not spend all of that new disposable income on electronic cigarettes but their purchases will carry a greater profit margin than tobacco sales and will continue to be regular and repeated, if correctly serviced.
Once an ex-smoker has successfully moved from tobacco cigarettes to electronic cigarettes they will often want to progress from the standard electronic cigarettes with which they started onto the more exotic products like ‘mods’ with replaceable batteries and variable voltage or ‘rebuildable atomisers’ and their accessories.
Your wholesale electronic cigarettes partner needs to be capable of supplying these goods too. They should be capable of offering advice on which products to stock and be willing to supply them in suitably modest quantities until your market expands.
Electronic cigarette batteries, chargers, cartomisers and atomiser heads all have a finite life, thus future sales are guaranteed. Surprisingly there are unexpected incompatibilities that can arise even within products of the same type, name and model number – this is because of the many ‘copy’ products imported. By dealing with one wholesale electronic cigarettes supplier who handles only known brands you are guaranteed compatibility and thus successful repeat sales and satisfied customers.
E-liquid is also an important and profitable regular repeat sale, if your wholesale electronic cigarettes supplier cannot supply a great range of branded, popular and favoured e-liquids in addition to wholesale electronic cigarettes then a large slice of the electronic cigarette market might elude you.
First steps or seeking improvement
Whether you are considering becoming a supplier of electronic cigarettes, wishing to expand your share of the market or seeking to replace your existing wholesale electronic cigarettes supplier you should consider the offering made by ECigWizard. They are a leading wholesale electronic cigarettes company who have hundreds of successful trading partnerships throughout the UK and beyond.
They are a recognised and highly respected brand and offer extremely competitive pricing with free next working day delivery. Their UK based sales and support team know their guaranteed products inside out. Furthermore they are one of the original members of ECITA, thus meaning that all of their e-liquids are supplied fully ‘CHIP’ compliant and come with full product liability insurance.