Smart Vape Vending: Industry Overview & Market Trends

Industry Overview and Market Trends:
The term “vaping” has gained widespread recognition, referring to the inhalation of vaporized nicotine through an electronic device. The vape industry has witnessed rapid expansion, with the global market for e-cigarettes and vape products valued at USD 28.17 billion in 2023. Projections suggest a robust compound annual growth rate (CAGR) of 30.6% from 2023 to 2030, as reported by Grand View Research.

A significant portion of disposable vapes is produced in China and primarily distributed via online platforms and smoke shops, allowing for substantial profit margins. Wholesale prices for premium disposable vapes, which are the most popular, typically range from $7 to $9, with the average retail price hovering around $25.

Many other vapes wholesale for less than $5 per device, but vape vending machines have a limited selection of SKUs, and data indicates that customers tend to prioritize brand over price. Therefore, product variety and pricing are crucial factors to consider when entering the vape vending business.

Despite the attractive profit margins from retailing disposable vapes, the industry faces increasing regulatory hurdles, such as flavor and product bans, shipping restrictions, marketing regulations, and excise taxes on nicotine. Additionally, it’s essential to stay informed about local regulations regarding vape vending, including any extra licensing or age verification requirements.

Introduction to Smart Vape Vending
The vending industry is undergoing a major shift with the rise of smart technology. Unlike traditional machines, smart vending machines are internet-connected and integrate with cloud-based software. This connectivity enables remote management, supports cashless payments, and improves data collection and sales analytics. For entrepreneurs entering the emerging market of vape vending, there is a distinct opportunity to launch their businesses with these advanced smart vape vending machines.

Smart Vape Vending: VTM Models Overview
In the vape vending market, there is a variety of stylish machines available. However, the true value of “smart” vending lies in the advanced software and technology provided by suppliers, along with the technical support they offer. It’s important to focus on these aspects first before considering how different models can meet specific operational needs, including SKU availability and capacity.

vapevending.us develops and thoroughly tests its own software, backed by a strong in-house team of software engineers and support staff.

As a US-owned and operated company, vapevending.us offers a diverse selection of smart vending machines designed to suit different spaces and functional requirements. Their approach involves vertical integration, which includes hardware development.

Software, Payment Processing, and Vendor Management
vapevending.us is uniquely positioned to support vape vending startups by streamlining vendor management and alleviating the challenges associated with it. With a focus on software, payment processing, and technical support, the company simplifies the entire process for operators.

Wall-Mount Machines
Slim Wall: vapevending.us’s #1 Seller
Dimensions: ~3 feet tall, 2 feet wide, and ~1 foot deep.
Capacity: 2 x 5 aisles (10 aisles total).
SKU Availability: Holds 10 products or SKUs.
Best Use: Compact spaces with moderate inventory needs.

Floor-Model Machines
Tower:
Dimensions: Taller, sleeker design with LED lights for aesthetic appeal.
Capacity: 24 aisles with extended coil sizes, capable of holding up to 240 vapes by default (capacity adjustable based on coil size).
Best Use: High-traffic locations that benefit from visual appeal, such as bars, clubs, or retail outlets aiming to attract attention.


For a complete overview of available machines and their specifications, explore the vapevending.us Equipment Collection.

Equipment Selection Overview
Technical Features
vapevending.us machines all feature a 32″ touchscreen LCD, the HV320FHB-F40 TFT LCD Open Cell:

Experience high-quality visuals with the HV320FHB-F40, a cutting-edge TFT LCD open cell. This module boasts a 31.51-inch full HD display and advanced amorphous silicon TFTs for sharp, responsive visuals. Each pixel combines red, green, and blue dots in a vertical stripe, displaying over 16.7 million colors with low reflection for enhanced color accuracy and viewing angles.

Perfect for high-quality images, videos, banners, and advertisements for kiosks and vending displays, the vapevending.us LCD display delivers reliable performance for any multimedia need, ensuring smooth operations throughout the year.

Dive into a world where technology meets unmatched quality.

This interactive display operates both online and offline, showcasing high-resolution product images. The machines run on an Android-based application (APK), with automatic updates provided as needed between 3:00 AM and 6:00 AM. These updates are typically seamless and designed to ensure optimal functionality.

vapevending.us Software and Mobile App

We have a web-based portal and mobile app (iOS and Android) to manage the machines. The mobile apps can be found in the Google Play and Apple Store, and our cloud-based software can be accessed through https://vapevending.us/vape-vending-guide/

The software is owned by vapevending.us and performs various functions, from real-time transaction monitoring to inventory management and sales and data analytics. More can be learned on our dedicated software page, but below are a few key highlights.

  • Inventory Management: Real-time tracking, low-stock alerts, and optimized product offerings.
  • User-Friendly Dashboard: Accessible via web, iOS, or Android for comprehensive control.
  • Advertising Opportunities: Display up to 8 rotating ads, updated in real-time.
  • Reporting and Analytics: Export detailed sales reports and analyze product performance.
  • Remote Login Ability

Maximizing Profitability and ROI: A Strategic Approach

Achieving optimal profitability and return on investment (ROI) in the vape machine business requires a focused strategy. Concentrate on the following four key areas to ensure success:

  1. Product Selection
  2. Pricing Optimization
  3. Revenue Model
  4. Custom Wraps
  1. Product Selection

Vape Vending Pricing Strategy: Prioritize Brand Loyalty

Vapers are very brand-loyal and are often willing to pay more for their vape of choice over a discounted product. vapevending.us has conducted extensive field testing–offering discounted vapes in machines across the United States, and the data suggests the following: Vape machines produce higher revenue and profits when the machines are stocked with premium, high-priced vapes that coincide with market trends.

vapevending.us has relationships with many reputable wholesalers that sell the hot-selling vapes, and it is important to take advantage of these relationships and stock these products. As a side note, just because a brand is hot in one area doesn’t ensure its popularity in another. For example, Breeze is an extremely popular brand in Ohio and Michigan, but go to Arizona, and most vapers have never even heard of it!

Engage with local smoke shops and consult their staff. These industry experts can provide insights into the hottest products in your area, ensuring your inventory aligns with customer preferences. Identify top-performing vape brands that resonate with your target audience. Brands like Geek Bar and Raz are popular nationwide (Geek Bar Pulse 15K, Geek Bar Pulse X 25K, Raz TN9000, and Raz DC25000). Other brands like Mr. Fog, Lost Mary, and Breeze are still popular in specific regions. Go to the local smoke shops to find out what is hot!

  1. Pricing Optimization

Strategy: average-to-higher priced vapes recommended!

Extensive market research has revealed that customers of vape vending machines are significantly less price-sensitive than originally anticipated (vapevending.us Market Research Terminals). Contrary to the assumption that pricing vapes consistently or lower than smoke shops would drive increased sales, we have found that pricing vapes $1–$2 higher than typical smoke shop prices does not negatively impact sales. Instead, this approach leads to higher revenue and profits. Customers prioritize the convenience of vending machines, which often outweighs minor price differences.

Based on these insights, we recommend pricing vapes at average to slightly above-average levels. This strategy capitalizes on the added value of convenience without undercutting potential profit margins.

However, it is important to avoid price gouging, as excessive markups could harm customer trust and satisfaction. A balanced pricing model that emphasizes convenience and accessibility ensures a positive customer experience while maximizing profitability.

  1. Revenue Model

Strategy: Adopt a Revenue or Profit-Sharing Model

Implementing a revenue-sharing model incentivizes venue owners to actively promote the vape machine, report service issues promptly, and ensure smooth operations. Additionally, a revenue-sharing approach safeguards your margins against fluctuations in wholesale or retail pricing, ensuring sustainable profitability. To learn more about vape vending profitability, spend some time on our expected vape machine profits page and interactive vape profit calculator.

 

Custom wraps for vape vending machines (vapevending.us machines) are a game-changer for boosting sales and enhancing brand visibility. By wrapping your machine with eye-catching graphics, you create a 24/7 marketing tool that draws attention in high-traffic areas. Custom wraps showcase your logo, promotions, and brand identity, turning your vapevending.us machine into a powerful advertising asset. Affordable and durable, wraps are a cost-effective way to increase foot traffic, engage customers, and elevate your brand’s presence. Proven success stories, like a Clemson-themed vapevending.us machine boosting sales by over $1,500/month, demonstrate the tangible impact of wrapped machines on business growth.

Step-by-Step Guide to Launching a Vape Vending Machine Business

  1. Set Up Your Business
  • Register an LLC:
    1. Research your state’s LLC filing requirements.
    2. Choose a name for your LLC and ensure it’s not already taken.
    3. File Articles of Organization with your state’s Secretary of State.
    4. Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
  • Open a Business Bank Account:
    1. Use your LLC documentation and EIN to set up a business checking account.
    2. This account will be used to link your card reader for ACH deposits on machine revenues.

Familiarize yourself with our vapevending.us Inventory Management Software through tutorials and live support sessions. Best advice is to “PLAY” and watch our YouTube Videos. The vapevending.us Vending Mobile Application and the vapevending.us Vending Android application for your phone are available on the Apple and GooglePlay stores, respectively. The web-based portal for vapevending.us Software can be found here.

Note: After purchasing your vapevending.us machine online, software and mobile app login credentials, the vapevending.us User Manual, and other vapevending.us resources will be emailed to you along with tracking information on your machine(s) purchase.

  1. Link card reader to bank account
  • vapevending.us will provide an onboarding link that takes you through the merchant processing onboarding process and links your bank account directly with your card reader(s).
  • Once completed, your card reader will accept all major credit cards through magnetic strip, EMV, Tap-to-pay, and Apple and Samsung Pay.
  1. Secure a Location
  2. Enter into a verbal or written agreement with a venue that would be an ideal spot to host a vape vending machine. In this agreement, you will outline the revenue or profit share to the location owner.
  3. Verify legal requirements for placing a vending machine in your desired area (age verification, local regulations).