Where are the profits from vape?
Everyone may think that vape is very violent to allow a lot of capital to enter the vape market. However, you will find that the price of vape is not too expensive in the market. Although the profit is still very objective in terms of cost, it is not too huge. So why is there such a large amount of capital investing in vape at the risk of being controlled at any time? Now we have to see how the profit of vape is calculated.
The market for vape is huge, its competitor is tobacco, how big is the market for tobacco? In 2018, the total tax and profit of China's tobacco industry was 1,155.6 billion yuan, and 1 trillion yuan was turned over to the national finance, which is about 5.4% of the national general public budget revenue. And since 2014, the tax profits of tobacco have exceeded 1 trillion. How attractive is a trillion-level market, even a small risk is worth their investment.
Maybe you think the price of a vape is not high, even if there are 1 billion people in the country with one vape per person, its market is only 100 billion, but don't ignore it, vape is not only an electronic product, it is also a fast-moving consumer product. Taste. The consumable for the vape is e-liquid and it needs e-liquid to give it the smoke and flavor.
E-liquid is not expensive, e-liquid is not expensive, a 30ML bottle of e-liquid can provide 4,000 mouthfuls of battery life, which can basically meet the consumption of more than one month, while a bottle of 30ML e-liquid is about 50 yuan. , equivalent to the price of 3 packs of cigarettes, which is obviously very cheap compared to the consumption of cigarettes e-liquid.
However, the consumption of vape cannot be calculated in this way. Although e-liquid is very cheap, the retail price of a pod with a volume of 2ml can generally be sold for thirty or forty yuan. The e-liquid cost of a pod is only 1-2 fast money. Even if you add other accessories of the pod, the cost is less than 10 yuan, then the profit of selling a pod is about 70%. An ordinary vape It is estimated that the user's pod consumption is only about 2 days. As long as the user uses vape for more than two weeks, his pod consumption will exceed vape.
How high is the cost of vape, as far as I know, even if the cost of a set of vape from a leading company will not exceed 50 fast money, and their price in the market is basically not less than 150 yuan, so The profit of vape is also quite considerable, but his repurchase rate is not high. If the quality of vape is good, a vape will be used for one or two years.
The main cost of vape is marketing and channel expenses. Simply put, as long as it can be shipped, it is pure profit. Because of this, Internet entrepreneurs can quickly transform into "vape product managers", package them as stories of consumption upgrades, and sell them to consumers to reap the initial consumer dividends in the industry.
So the vape model is very similar to the razor and the printer. Gillette razors make money for high-priced blades through cheap knife holders, and HP printers sell cheap printers for high-priced ink cartridges, both of which make money for long-tail accessories. Their purpose is to acquire customers, increase customer dependence, and earn customer follow-up expenses.
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