Lower Prices Could Provide Rapid Growth

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growthIn the Dothan, Alabama area, Crimson Vapor has created a home for its 2 year old e-cigarette and e-liquid business. Though business for the owner, Jason Hall, hasn’t necessarily been extravagant, it has certainly been consistent. Crimson Vapor’s latest strategic push into a brick & mortar store could provide rapid growth.

Crimson Vapor was birthed back in late 2012, and as a result of its name being heavily inspired by the Crimson Tide Football Team, the website was themed in the traditional Tide colors. Just like you hear with many stories from vendors, Mr. Hall created his e-cigarette business to help smokers switch, but there was more to it than just your ordinary story. Mr. Hall has always been passionate about everything he does; with the car scene he had one of the most beautiful cars in the area, in his past construction business it thrived by locals from quality work, and now in the e-cigarette business, it almost seems as if e-liquid runs through his veins.

It was a little over a year running the Crimson Vapor store online, and Mr. Hall felt that it was finally time to open a brick & mortar store to better serve his local customers. There are currently 5 vapor shops located in the Dothan area, and it would be hard-pressed to make an impact by opening a new store. However, Mr. Hall didn’t come in with guns blazing or any fancy tricks up his sleeve, but he did have a strategic plan that has been working for him all along – providing reasonable and sustainable prices on leading products.

increase customersCurrently, Mr. Hall offers the lowest prices on e-cigarette products in the area. Most brick & mortar stores have a markup compared to the online portion of its stores. Though Mr. Hall will lose per sale, he will see a far greater increase in customers over time. Crimson Vapor has made its way into a local market where vendors once set their prices for a high profit, but Crimson Vapor has shattered that barrier and offered products at more of an industry standard that is normally only seen during online shopping.

What’s so strategic about his opening? Mr. Hall didn’t look for a location that came with a high monthly cost. What he did do was open in a location where the monthly cost was cheap, but it was also in an area where there wasn’t much shopping. By not having to pay out much for the location, prices on products can continue as they have been and though the area isn’t fruitful with shoppers, Mr. Hall has relied on 3 things to continue his company’s success; low prices, great customer service, and with a population of only 65,000, word of mouth.

While talking to Mr. Hall, he said that since opening his brick & mortar store in early May, his sales have doubled, gaining both new and repeat customers.

Has a more affordable vapor shop entered your area? Do you have a story to tell? – Let us know in the comments below.

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