What happens when a vape shop closes?

[pennysmalls]

I'm interested in finding out from business owners, or others who would know, what happens when a business gets shut down. It has to be a pretty involved mess. I'm thinking about the vape shops in my state and the people who run them. Are they going to have to file for bankruptcy?

Oh, and mods I wasn't sure what section to put this thread in. I figured since there could be legal proceedings resulting from shops closing due to restrictions from legislation that it should be in this section. But feel free to move if there is a more appropriate section.

 

[Shirtbloke]

One of the things that happens (at least for an online shop) is that you put up your over expensive and badly informed website up for auction ......
https://flippa.com/3327894-site-w-4...s-15000-yr-best-name-in-growing-vape-industry
Notice it hasn't met the reserve and is a huge fail.

Seriously - this site sells hugely expensive liquid at $11.99 and (get this) it doesn't even tell you how big the bottles are! - Although in the additional information section it does tell you that they weigh 2 pounds??????
Alice E Liquid by Caterpillar - Alice E Liquid - E Juice - Vape Life

Really - they deserve to die.

 

[ISGRidge]

What do you mean bu "Gets shut down"? By whom?

 

[pennysmalls]

By shut down I mean there is proposed legislation in my state right now that would force our shops to close and make purchasing e liquid in my state almost impossible, except from out of state online vendors of course. I'm not clear on the sale of mods and atties and how those are affected, but will find out today. The way the legislation is set up our shops would no longer be able to sell any e liquid without a permit starting July 1st, but the application process to obtain the permit wouldn't begin until July 1st forcing the sale of liquids to halt until the application process is complete. Most shops won't be able to afford the fee nor the other requirements to meet the criteria for being granted a permit. Armed security guards, 24% tax on inventory and both onsite and offsite surveillance are three requirements that shops just can't do.

 

[Frenchfry1942]

Their business license is terminated. Hopefully, they will move or liquidate stock to eliminate losses. Petitioning for exemption is available and some are grand-fathered.

Different places, different things

 

[Shirtbloke]

So they're proposing a far stricter regime than they have for cigarettes and tobacco or even alcohol? Sheesh.
A tax on giving up smoking?
Are they also bringing in these requirements for places that sell nicotine patches or gum?

 

[ISGRidge]

Wow. That is some crazy legislation! The only reason anyone would have to file for bankruptcy would be if they could not afford to get out of dept. Otherwise, they just "go out of business". Terminate their business license for tax purposes etc.

 

[Kent C]

Close up shop. Take inventory to the black market.

 

[sparkky1]

The new regulations will force owners to produce a tobacco / tax license and the juice vendors are having to submit there product to the FDA for approval, the only way you would loose your license is if you sold to minors.There not forcing anyone to close....The ban is for sales to minors and vaping in public / inside businesses.....

 

[Izan]

This





Then this





cheers
I

 

[pennysmalls]

The new regulations will force owners to produce a tobacco / tax license and the juice vendors are having to submit there product to the FDA for approval, the only way you would loose your license is if you sold to minors.There not forcing anyone to close....The ban is for sales to minors and vaping in public / inside businesses.....

The FDA is not doing this, Indiana is.

 

[pennysmalls]

Thanks for the replies. I was thinking that if these bills pass this would pose a serious financial hardship for some of these shop owners. I know of one owner at the meeting over the weekend mentioned that he poured his life savings into his.

 

[sparkky1]

The FDA is not doing this, Indiana is.

There just implying a 24% tax increase, will it shut B&M's down ? so a 20.00 bottle of juice would be 24.80 and so on.....big deal my property tax has done the same.
Will I be willing to pay 24% more for vape gear YES

 

[NorthOfAtlanta]

There just implying a 24% tax increase, will it shut B&M's down ? so a 20.00 bottle of juice would be 24.80 and so on.....big deal my property tax has done the same.
Will I be willing to pay 24% more for vape gear YES

Just one question, why are you willing to pay more, they need to learn to spend less. Not our fault they thought they had a free ride on smokers money.

 

[pennysmalls]

The 24% percent tax increase applies to shop owners when they are ordering stock for their shops, and that's on top of sales tax. This apparently does not apply to customers shopping at vape stores, but of course the cost would have to be passed on to the customer, at least in part. This is the way it was explained at a meeting we had Sunday in Indianapolis by a lobbyist who also owns a vape shop. Sorry I wasn't more clear on that part earlier. What I'm not clear on yet is if that applies to their juice orders only or to everything in their stores. My local shop has three stores and a 24% percent increase on ordering stock for three stores would have to be a pretty big burden.

Indiana is also trying to make it so that no shops in Indiana can buy juice from an out of state vendor to sell in an Indiana shop unless that out of state vendor also applies for and is granted a permit by the state of Indiana, which costs $5000 and leaves that out of state vendor open to inspection by the Indiana state Alcohol and Tobacco Commission. And they've already scheduled a hearing for this bill this week, a bill that was introduced just 13 days ago. This tells me they aren't messing around and plan on doing all they can to do away with vaping in this state. Our shop owners are going to suffer.

 

[sparkky1]

I'm not implying I would rather pay more, I would still be paying 7.00$ a day for ciggs if I was smoking, do I think it's fair NO but we do live in the land of the free....so I pay....

 

[house mouse]

I'm not implying I would rather pay more, I would still be paying 7.00$ a day for ciggs if I was smoking, do I think it's fair NO but we do live in the land of the free....so I pay....

I'm of a different mind. I refuse to pay beyond ordinary sales tax. I absolutely, point blank refuse to pay a sin tax on a product that is beneficial to a smoker quitting cigarettes. That is the point where my purse snaps shut.

 

[jwbnyc]

Close up shop. Take inventory to the black market.

Location, Location, Location... They'll have alot of customers waiting there...

 

[thefleck]

I'm of a different mind. I refuse to pay beyond ordinary sales tax. I absolutely, point blank refuse to pay a sin tax on a product that is beneficial to a smoker quitting cigarettes. That is the point where my purse snaps shut.

Well said. I think I like you

I'm assuming these laws only apply to juice and not the other devices/merch?

It's going to hurt the B&M places but to be honest it kind of drives me nuts that they survive on juice sales to begin with. Selling juice for ~1$/ml that costs at most $1/30ml to manufacture. That's one hell of a markup.

All the more reason to DIY...they might charge you a sales tax for the nicotine but that's going to be negligible...can't tax PG/VG/flavorings I assume.

Shops and juice makers would be wise to sell nicotine-free juice and let users add nicotine on their own. You could charge me 100% tax on $5 of nicotine if it lasts me a couple months. Beat that, suits!

 

[Racehorse]

By shut down I mean there is proposed legislation in my state right now that would force our shops to close and make purchasing e liquid in my state almost impossible

Maybe I'm not reading the proposals correctly. The way I am reading them, the proposals are aimed at keeping ecigs out of the hands of kids. Licensing shops will allow fines against those who sell to minors. Taxing eliquid makes vaping unaffordable to kids, who don't have a way to produce income.

Are you saying a 24% tax is going to make eliqiuds "impossible to buy" for adults?

Given the amounts of $$ I see people spending on vaping, that doesn't seem accurate at all.

As for life savings, do you know how much it costs to open a small vape shop? The guy in my town lives on disability and opened one. Rented a storefront, bought 2 glass showcases at an auction, ordered some wholesale stuff from china and hung out a shingle.

There's just way too much up in the air to panic yet......and every point in a proposal doesn't make it into actual "law".

Meanwhile, there are vape shops in the US who are expanding out to multiple locations and putting out 7,000 bottle of ejuice a week......I keep seeing all this "full steam ahead" activity and wonder what they are thinking because it doesn't match the paranoia I see on vaping forums?