Ok, it’s gone from a way to afford e-liquid to a full blown hobby, but now my DIY experience is turning into an obsession. There’s an old expression do what you love and you’ll never work another day in your life. There is a lot of truth to that. But how do I parlay that into starting an e-liquid company?
This past weekend I visited several of the local shops armed with a recent juice I made which is the crème de la crème of all my creations. I can’t believe how good it is. But aside from that I have at least 5 others that are very near that quality. This is the kind of unique liquid that makes people get that look on their face when they first try it. I love that look! I love to get that look. I want to make money making other people have that look. And I got that look each time I let someone try this one liquid. I left home with a 60 ml bottle of it. Problem was, the decision makers at these shops typically don’t work weekends which meant I didn’t get that look from the people who would say yes, I’ll sell that here. But I know without a doubt they would sell it. The juices I’m referring to can stand toe to toe with anything Suicide Bunny, Five Pawns, Nicoticket or anyone else has to sell.
I’m interested in knowing what a good business strategy is. My mind races when I think of what I believe I should do. But in a nutshell, here’s what I’ve thought.
I have my flavors to start, so first would be find a bottle supplier. Then -
Label design and purchase
Find a space to rent where I can make a clean room. I’m not talking
about some ISO clean room, but something that if someone were to
inspect would find a clean, sanitary environment that is complete
with hepa filtration on the ventilation.
Set up a LLC or Inc as S Corp
Negotiate with flavoring, PG/VG and nic suppliers for the best rate they will give me
Learn about keeping books for a retail business, ie local state and fed taxes, etc. Or hire an accountant.
Devise a marketing strategy
Ok, so I’m not completely ignorant with business. I do own a corporation currently but I’m a service oriented business so there’s no sales taxes due, etc. In fact I’m not dumb about business, but I am about retail. Never done it. So I have lots to learn I’m sure. In fact, if I were to sell to shops and they sell to their customers, is that even considered retail? I’m certainly not interested in consignment but perhaps I could be convinced…?
Question - I know diketones are a major concern. I’ve not given a crap with my own liquids but I think it’s best to start off right and be able to show something should someone ask. Of course testing the finished product would be best, but do you think I could legitimize my initial efforts if I just obtained statements from my flavor suppliers as to the presence of anything like that in their flavors? Of course if I were to only start with a half dozen flavors I could probably swing the test from the outset. However, I’m sure everyone knows how financially difficult starting a business can be.
Am I missing anything? Well aside from a cool company name, nice label design and catchy flavor names. I got that wrapped up. Any advice is appreciated and thanks for reading.
Let me know how it goes. I would love to see a clean room built even if it is from some pictures. They are cool and you can do a lot of things in them.
That is considered Wholesale and what you have to be able to do is sell your eliquid at a price that is at least half of retail price (for premium) or the shops will not be able to make a profit by carrying your line. Retail sales you get the full price. You overprice and you can guarantee no sales because most shops can blend their own and as you and I both know some of these people can blend just as good as we can. Those probably wouldn’t buy though.
You are far from big enough to afford clean rooms, labs, outside testing, even property rental. These are things to address when you have money flow. Most of these shops blend in conditions worst than your kitchen table. If you can set up a small room with stainless steel coils, I mean tables and fixtures, keep it clean, you’d have a decent setup to start.
You can make available MSDS sheets on all flavors you use and if the vendors has done any testing info on that. Whatever you can do with such limited funds can not hurt. Just don’t provide them only for a certain juice since you will be telling the customer what’s in it. Have a sort of booklet made up or a website where they can read up on all flavors you use. This would be a good start…
Oh and yes, spend some money on labling and at least some inexpensive Amber, or clear bottles. I say amber though. Some customers are under the impression that if a juice turns dark in color it’s bad. We all know Vanilla will turn dark. Cobalt is good too if you can get them at a good price…
How exciting!! I wish you every success @SthrnMixer!
But, just a thought from a different angle… If it where possible, would you consider selling your recipes to the “big boys”? …if theyd buy a recipe that isnt their own, that is? I dunno… do they do that?
You’d be avoiding all the set-up & on-going running costs, the marketing, the leg-work etc, etc…etc…
Maybe you could negotiate an up-front fee + a royalty?? …Just a (probably crazy …& naive) thought.
I wish you the Best of Luck ! I believe you can legally mix in your own home( for a business ) with some minor restrictions ,depending on which state you are in. Many of the commons places we already shop online offer wholesale accounts. I know that your mixes will and can stand up against the next best so spend some money on labeling and nice bottles.
You and I both know that the dropper is of major focus as far as the bottle is concerned if it leaks and does it close properly. Take a few vendors and buy a bottle each from them and test drive it. It is so annoying to spend money on a retail juice for it to leak when I shake it up or the dumb bottle doesn’t close right (cosmic fog huge offender ). I agree with @ringling choose a darker bottle for juice preservation/ client’s perception.
Hello, I am new to this forum and am eagerly looking to for as much knowledge as possible. I am opening my own vape shop and I would also like to start my own e juice line. Should I contact all the best e juice companies and ask them for product for my shop? I am in need of a mixologist. Or someone to guide me in the right direction. I am trying to start in the right direction so any help at all would be much appreciated. If anyone has anything else they would like to suggest to me I sincerely appreciate it.
There’s nothing like being you’re own boss!