Need some advice (Business related)

[NARMAK]

Ok, so basically whilst doing my final year of university, I spotted a business opportunity half way through my final year, and pulled the trigger to register a brand name, research suppliers (in China), do design of products, flavour testing, etc. The product I sell is basically electronic cigarettes branded as 'E-shisha' due to the fact they're fruity flavours etc. whilst traditional cigarettes were tobacco and menthol.

So, that was from late December 2012 all the way to call it July 2013 when I got my products. Since then, I have on a credit basis extended it to two places of retail. One was an acquaintance I knew from the gym for a while now with his own sports nutrition shop, and the second was an acquaintance of my sister from kids school who currently works in a club.

I also when first starting was very enthusiastic, and gung ho to just get out there and I probably approached 6+ retailers and pretty much got knocked back by every single one. During August, I became involved with charity work, which is still on going to a degree but i'm pretty much free now to go back headlong into getting my own business on track.

I created a Facebook page for my products. Offered pens to people so I can get some pictures of people using them, and for the most part I got a few. I was hoping that as likes increased on the page, people would perhaps see it on their friends feed and also like it and maybe i'd get a small snowball effect. People perhaps buying the product and eventually things get rolling to more sales etc.

That didn't happen. Instead, I've absolutely struggled to get the social networking side of things off to a flying start and translate them into sales.

I'd like to set up a website, but funds are kinda tight and i'm exploring how to get it done cost effectively. I am trying to work on getting some proper photographed promotional material and been mulling whether to get a Facebook store set up, and link the domain name address I bought to the FB store.

That aside, the question i'd like is how to make the above most effective, and what would you guys do in my position to try and get it into retail locations.

TIA

[shredking9000]

Originally Posted by NARMAK

Ok, so basically whilst doing my final year of university, I spotted a business opportunity half way through my final year, and pulled the trigger to register a brand name, research suppliers (in China), do design of products, flavour testing, etc. The product I sell is basically electronic cigarettes branded as 'E-shisha' due to the fact they're fruity flavours etc. whilst traditional cigarettes were tobacco and menthol.

So, that was from late December 2012 all the way to call it July 2013 when I got my products. Since then, I have on a credit basis extended it to two places of retail. One was an acquaintance I knew from the gym for a while now with his own sports nutrition shop, and the second was an acquaintance of my sister from kids school who currently works in a club.

I also when first starting was very enthusiastic, and gung ho to just get out there and I probably approached 6+ retailers and pretty much got knocked back by every single one. During August, I became involved with charity work, which is still on going to a degree but i'm pretty much free now to go back headlong into getting my own business on track.

I created a Facebook page for my products. Offered pens to people so I can get some pictures of people using them, and for the most part I got a few. I was hoping that as likes increased on the page, people would perhaps see it on their friends feed and also like it and maybe i'd get a small snowball effect. People perhaps buying the product and eventually things get rolling to more sales etc.

That didn't happen. Instead, I've absolutely struggled to get the social networking side of things off to a flying start and translate them into sales.

I'd like to set up a website, but funds are kinda tight and i'm exploring how to get it done cost effectively. I am trying to work on getting some proper photographed promotional material and been mulling whether to get a Facebook store set up, and link the domain name address I bought to the FB store.

That aside, the question i'd like is how to make the above most effective, and what would you guys do in my position to try and get it into retail locations.

TIA

What types of retailers have you approached?

[HyperRealist]

SPAM the e-cig groups on facebook and regsiter your company at E-Cigarette Forum. You need a website. E-cigs are an internet business. Not many people buy them at retail stores. AFter they realize the ones they sell at the gas station are junk, they either give up on them or get online and find the good ones.

Is your product good? I'm a vaper. I'd be interested in purchasing if it is something up to date that works good. There is a lot of junk out there and something better comes out every day.

[NARMAK]

Originally Posted by shredking9000

What types of retailers have you approached?

So far it has been independents from varying sectors. IMO, the product can be somewhat versatile depending on whether the individual store is willing to actually market it like I recommend e.g. a fashion store for instance I approached, can view it the same as selling accessories.

A desert bar, because of the fruity flavours present in the product, they can go quite well with such things.

I've even approached a large Indian department store and to be frank, they kind of palmed me off with excuses. Apparently 50+ year olds who run it are concerned their 70+ year old dad won't like them selling a safe alternative to cigarettes because it looks 'similar'

So, basically, i'm looking for fresh ideas and approaches people would use if in my position. I also rang a few places, and they said they need a proposal, and I've been busy but I hope to have something prepared that I can present, and i'm hoping to visit the capital city soon enough to go sell my products there. My hometown unfortunately is well.. tight. They don't like spending money except on useless crap every year called iPads and Galaxy S phones

[shredking9000]

Originally Posted by HyperRealist

SPAM the e-cig groups on facebook and regsiter your company at E-Cigarette Forum. You need a website. E-cigs are an internet business.

Good advice.

Originally Posted by NARMAK

So far it has been independents from varying sectors. IMO, the product can be somewhat versatile depending on whether the individual store is willing to actually market it like I recommend e.g. a fashion store for instance I approached, can view it the same as selling accessories.

A desert bar, because of the fruity flavours present in the product, they can go quite well with such things.

I've even approached a large Indian department store and to be frank, they kind of palmed me off with excuses. Apparently 50+ year olds who run it are concerned their 70+ year old dad won't like them selling a safe alternative to cigarettes because it looks 'similar'

So, basically, i'm looking for fresh ideas and approaches people would use if in my position. I also rang a few places, and they said they need a proposal, and I've been busy but I hope to have something prepared that I can present, and i'm hoping to visit the capital city soon enough to go sell my products there. My hometown unfortunately is well.. tight. They don't like spending money except on useless crap every year called iPads and Galaxy S phones

I'd narrow your scope and focus on getting into a few smoke shops. I don't know about the UK, but in America those types of stores are the only place such a product could take off.

[NARMAK]

Originally Posted by HyperRealist

SPAM the e-cig groups on facebook and regsiter your company at E-Cigarette Forum. You need a website. E-cigs are an internet business. Not many people buy them at retail stores. AFter they realize the ones they sell at the gas station are junk, they either give up on them or get online and find the good ones.

Is your product good? I'm a vaper. I'd be interested in purchasing if it is something up to date that works good. There is a lot of junk out there and something better comes out every day.

Thanks for the reply Hyper

I totally believe my product is superior in terms of taste to the other products available on the market, or definitely the majority of them, including some the 'top' brands here in the UK. That's kinda the reason I decided to go for it. Because the 'market leader' had a crap product really. Didn't last long and taste wasn't good.

The 'snag' if you might want to call it that is that the product I currently have and decided to start with is a disposable product. It offers 'Up to 800 puffs' which is amongst the largest size available for any disposable e-cig whilst still retaining a compact and personal size. If you like, I will PM you the Facebook page address as we have pictures of people using the products and a pic of all 5 in the launch edition range.

The idea was to eventually expand the range, and offer rechargeable solutions, but of course to do that, you need a ROI and then re-invest in more stock and new products etc. That's what i'm hoping to do by the end of the year.

As you mentioned, there's a lot of junk out there, and unfortunately that has severely distorted at least imo the local cities expectations of what a quality product should cost. My RRP is £14.99. My primary competitors was £12.99.

Difference being mine are up to 800 puffs, whilst theirs are up to 500. I think £2 more for a superior and longer lasting product on an RRP basis was very reasonable. But as mentioned, cheap junk has flooded the market in recent months, and I suppose that's just created a small problem for all brands like myself to overcome to a degree.

[NARMAK]

Originally Posted by shredking9000

I'd narrow your scope and focus on getting into a few smoke shops. I don't know about the UK, but in America those types of stores are the only place such a product could take off.

I think I can make a list of tobacconist shops, but the only issue I foresee is the products don't quite 'fit' with what those shops typically specialise in. They're a bit 'colourful' rather than the demure style most products take.

Also, I went into one shop that's kind of a hybrid tobacconist/news agent and they were just adamant that the price point is too high in comparison to competitors. Personally, I crunched all the numbers and on a basis of value proposition, my product was absolutely competitive with others and even gave a saving even when bought at full RRP.

[shredking9000]

Originally Posted by NARMAK

I think I can make a list of tobacconist shops, but the only issue I foresee is the products don't quite 'fit' with what those shops typically specialise in. They're a bit 'colourful' rather than the demure style most products take.

Also, I went into one shop that's kind of a hybrid tobacconist/news agent and they were just adamant that the price point is too high in comparison to competitors. Personally, I crunched all the numbers and on a basis of value proposition, my product was absolutely competitive with others and even gave a saving even when bought at full RRP.

Considering that the product's disposable (and somewhat affordable,) I'd expand that range to anywhere tobacco products are sold; convenience stores, gas stations, etc.

I'm not sure as to how many people smoke in the UK, or if there's a stigma attached. In America, I couldn't see a tobacco-based product selling well in stores that don't typically sell them, but it might be different where you are.

[Captain Kirk]

Facebook Ads and a website. You are wasting your time social networking if you have no proper place to buy them online or a website with information directing people to retail locations.

Magento Cart or OpenCart are good places to start. A domain is usually $10 or less and hosting can be had for a few dollars a month. Research SEO or hire someone to do it.

[NARMAK]

Thanks for all the advice so far guys. I definitely need and want to get a website made and will look into the above info posted. I already had the domain names registered, but i'm gonna have to have somebody design my e-commerce site. I bought my domain with go daddy, and I know they do a free website but not sure if trying to design it myself and adding a paypal cart would be enough.

I am going to actually call the photographer this week and get all the promo pictures out of the way and then e-mail a persn my friend knows who designs websites. If there are anymore suggestions at all as to how you might pitch the products etc. Please do share them. I am a novice to starting a business as this is my first, but i'm willing to listen and try things in order to get my product out there and selling.

As they say, not all worthwhile things are sunshine, rainbows and smooth sailing

[12vElectronics]

Here in the States, the first thing I would do is travel around and hit every Smoke/Hookah shop. Then even go to the Hookah lounges. Although they might not use your product as their main business, they've gotten smarter and are starting to sell stuff for people to smoke when they're at home or on the go!

[Edh63]

Get a chance to promo your product on the popular TV show "Shark Tank". Propose it to these investment entrepreneurs and offer them a buy-in to your equity so they can throw you some financial backing. You may just strike a deal with one, or two, and make millions.

[blurayisnice]

i dunno, I think it's a risky product. I know it's a safe alternative and all that, but smoking isn't popular and most people will probably avoid it. What's your target group?

[shredking9000]

Originally Posted by Edh63

Get a chance to promo your product on the popular TV show "Shark Tank". Propose it to these investment entrepreneurs and offer them a buy-in to your equity so they can throw you some financial backing. You may just strike a deal with one, or two, and make millions.

To go on Shark Tank you have to

...enter into an agreement with Finnmax, the show’s producer, [giving] Finnmax the option either to receive a 2 percent royalty on the operating profits of the company or take a 5 percent equity stake.

boss.blogs.nytimes.com/2012/09/19/passing-up-the-opportunity-to-appear-on-shark-tank/?_r=0

Originally Posted by blurayisnice

i dunno, I think it's a risky product. I know it's a safe alternative and all that, but smoking isn't popular and most people will probably avoid it. What's your target group?

I always see at least few people smoking when I go out. No interest in it myself, but it doesn't seem as though there is a lack of potential customers, at least where I live.

[NARMAK]

Once again thanks for all the responses. I'm certainly going to make up a list of all the hookah lounges & approach them. I had 2 i already approached in my local city & no luck but there's plenty more.

I'm hoping to write up a little plan & visit London soon but have appointments made in advance so i can visit several businesses per day over a three day period at minimum. I'm also hoping to get the ball rolling on a website & the promo photos this week.

Regarding the outer investment, i'm not looking to get any outside investors as i'm very fierce in my desire to build my own company. Some might view this as naieve or foolish but we all have a desire of how much control we want & i find investors usually stifle certain creativity. So i'm going to keep solo.

Again, keep the suggestions coming & i'll keep updating with my progress. My hope is to visit London mid-week possibly as early as next week. Regarding the smoking aspect, e-cigarettes are considered to be a revolutionary product to replace all the harm tobacco products caused. We had a smoking ban & a lot of stigma become attached to smoking which unfortunately rubbed onto these healthier alternatives but i'm hoping that subsides in time.

[NARMAK]

Hi guys.

I'm just wondering if any of you have any advice on the best way to go about making my ecommerce website. Such things as who to hire (if anybody) or what programme to do it myself, and the potential costs of each route and the pros and cons.

I've been doing some research, but I don't feel any closer to really getting an answer. Maybe a member here has made an ecommerce in the past, or knows of a friend who currently runs one and is willing to share any wisdom and tips for making my own.

I live in the UK, so I appreciate some stuff is general and applies to all ecommerce websites, while some stuff required will be UK centric.

It all just seems more confusing the more I continue to read about it, and like it's all hocus pocus magic. Don't worry, I know it's not; but it just feels like that to me

TIA