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With the rising popularity of electronic cigarettes, suddenly there is a growing interest in a business model that can not only offer the actual products to vapors, but can also serve as a place where they can enjoy those products they purchased. Since smoking in public places is banned in most countries by now, people are open to an alternative, and this is where e-cigarette bars – or as they also call them - e-cigarette lounges come into the picture. There are more and more “juice bars” out there, and the only thing that can slow those establishments down, is unforeseen regulations. Not any kind of regulations either, as the banishment of e-cigarettes from public places could result even more lounges.
For those who have missed the e-cig revolution for some reason, here is a little reminder. E-cigarettes are electronic devices that offer an alternative for regular smoking. Thanks to their design and capabilities, they can offer you an experience that can be extremely similar to smoking. By vaporizing a liquid (with nicotine in it or without it) those devices create a smoke-like vapor which the user can inhale, thus creating a similar sensation to smoking. The appearance of those devices can also be very similar to regular cigarettes, which enhances the experience. The devices are using a battery for the atomizing process, a battery that can be changed at any time.
The real reason why vapor lounges are on the rise
When there is a sudden spike in anything, the root cause is almost always money. It is really that simple. The e-cigarette sales are climbing, and they’re climbing rapidly. According to business analysts and their predictions, if sudden and severe regulations won’t slow down the industry, it will soon take over the smoking industry, and electronic cigarettes will replace the regular ones.
Still a risky business?
Although it’s blooming, the e-cigarette industry still represents a high risk when it comes to merchants, entrepreneurs, and other businessman who would invest money into it. The reasons for that are the unpredictable regulations. There are hidden agendas in play, and since the FDA still hasn’t been able to make a final ruling on their stance regarding those devices, e-cigarettes still represent a somewhat risky proposition from a strictly business standpoint. That won’t, and it does not stop the possible investors, but it gives us a great perspective just how big this industry can get, once we know all the future regulatory plans.
Another important aspect that we haven’t touched so far, are the looming tax regulations. The brave ones already started the process, but many thinks that even if e-cigarettes stay allowed, their tax one day can be so high that only the relatively wealthy people will be able to afford them. That’s not a great business vision. At the same time, they also stifle the innovative process within the e-cig industry, which slows down the conversion rate. It might seem like a contradiction, but the e-cig industry at the moment is both blooming and full of question marks.
Vapor Lounges, can they represent the future of vaping?
The e-cigarette industry can find itself under strict or even severe regulations in the next couple years. Those regulations aren’t necessarily warranted, but that’s a whole other discussion. What makes this interesting regarding those establishments, is the fact that vapor lounges can end up being the only public places where vaping would remain legal. A good example would be Los Angeles. At the moment, there is a regulatory plan in place there, which would ban vaping in all public places, just like they did with cigarettes. However, those regulations would not apply to vapor lounges.
If that happens, the rising rate of those bars can further increase, as they would not only offer the public place for vapors to enjoy their habit, but they could also convince many smokers that hasn’t yet tried out those products, to see what electronic cigarettes have to offer. The Los Angeles committee unanimously approved this regulatory plan, but added this amendment that would still allow vapors to enjoy their habit in those establishments.
Those bars are becoming more and more popular because they can offer a quiet, intimate environment where any vapor can find their beloved product, or try out other flavors without having to buy them first. They create a great opportunity for new vapors too, to try out this popular habit. Many of those lounges saw a quick spike in their revenue, so it’s safe to say that despite the obvious risks, many people are open to this business idea.
One particular lounge in Rockingham reported an astonishing 30% increase in their monthly revenue, which suggests that more business will open in the next couple years, especially if those lounges will end up being the only public places where vaping is legal. So from a business standpoint, lounges are more of a safe bet as developing a new type of e-cigarette would be. Entrepreneurs are already on the lookout, but they have to be cautious and opportunistic at the same time.