Companies that mix personal e juice recipes?

[R3alJim Shady]

So I just started DIY a couple of weeks ago. I really feel that I nailed a couple of recipes, which led me to think "What about going into business?" It was a fleeting thought and one I probably won't follow through with, but IF I wanted to do so, how would I do it?

Is there a company I could contract out to mass produce my recipes in different nic levels and such? Can't find any info on the Google.


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[UncleRJ]

There may be one or two that would do that for you.

But I would imagine that you would have to pay in advance for the product once they have proven that they can indeed replicate your recipes.

Better of doing it yourself if you really want to make a profit and protect your creations.

 

[R3alJim Shady]

Good advice... I have two young kids, a new house, and a full time job. I just can't see having the time to produce THAT much juice. Just a pipe dream anyway. Thanks!


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[Botboy141]

Good advice... I have two young kids, a new house, and a full time job. I just can't see having the time to produce THAT much juice. Just a pipe dream anyway. Thanks!


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Start mixing by weight instead of a syringe. Set yourself up in a small clean space, really only need like 4x4 + storage room. Was running some cost breakdowns today myself as people keep nagging me to take my juice line to the streets...and someone offered to back the launch today so...

This gives you a general idea on the cost breakdown per bottle (when buying in bulk) and expected mark up. After running the numbers I'm considering it...The margin is there, and the way I look at it...mixing by weight I can mix about 40 bottles per hour including labeling and shrink (10 bottles, 250ml batches, of a juice every 15min). Should earn roughly $3.00 per bottle on 15ml selling to retail stores. That's $120 an hour once the stores start carrying it. Obviously, you have to have time to develop those initial points of contact and make the sale.

Wholesale to Retail Stores, Price Breakdown
30ml Breakdown (15% Flavor, avg) 15ml Breakdown (15% Flavor, avg)
Nicotine $0.19 $0.10
VG $0.13 $0.07
PG $0.07 $0.04
Flavor $0.32 $0.16
Bottle $0.42 $0.39
Label $0.12 $0.06
Shrink Wrap $0.04 $0.04
Cost per Bottle (30ml) $1.28 $0.86
Average Wholesale = $5.50 $3.50
Net Profit per Bottle = $4.22 $2.64
Margin 330% 307%


You also have to factor in start up costs I guess for that intial order and the types of things you'd need to take a line retail rather than just mixing for yourself. Factoring in my first large bulk order and all necessary materials to mix 500 bottles and have flavors left over, I'm still under $2,000. That includes miscellaneous items like a mini-fridge, heat gun, crock pot, everything you could possibly imagine.

4 hours a week to make juice is an extra ~$20,000 a year. That's my pipe dream anyways. (FYI, the above prices don't factor in non-consumables needed for start up OR insurance. Just hoping to provide a college education to the one on the way here...

EDIT: I fail at formatting, I give up.

 

[R3alJim Shady]

Thanks for info! Truly enlightening!


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[HeadInClouds]

You also have to factor in start up costs I guess for that intial order and the types of things you'd need to take a line retail rather than just mixing for yourself.

I've run a few successful ventures over the years (none vape-related). When estimating hard costs, I've found a good rule of thumb is to list every possible expense I can imagine (as you've done) - then double it. Reality usually comes close.

With e-juice sales, you will have lost shipments, bad payments, have to provide some refunds, might want/need to provide free samples, self-employment tax structure SUCKS, PayPal/credit card companies/eBay take their share off the top, retailers need to buy a license, there will be accidental waste/spoilage, etc.

It's also not unreasonable to double the estimate of your personal time required. When you sell any product, you have to meet licensing requirements for your area, keep sales and tax records, fill out and file forms, deal with various gov't bureaucracies (federal, state, city, sometimes separate special tax districts) - lots of unexpected demands on your time. Penalties for trying to cut any corners there are prohibitive.

If the numbers still come out in your favor, you're good to go. If not, time for more planning before a launch.

 

[VapedCrusader]

Good advice... I have two young kids, a new house, and a full time job. I just can't see having the time to produce THAT much juice. Just a pipe dream anyway. Thanks!


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If you are serious - you will need to make selling e-juice your new FT job lol.. It's a much bigger venture than most people realize.. Plus with the market flooded with juice vendors, you better make damn sure you're recipes blow the socks off people

 

[misswish]

And please don't forget insurance! Liability on anything ingested (inhaled) is expensive, and a must-have.

 

[Smoky Blue]

expect:
the cost of starting local and then state and country
having friends/employees to pass out free juice..
a few people not to pay for said juice..
shipments to run late
if anything breaks (printers, dropped box of glass bottles.. glass cylinders)
don't forget, a totally cool label for each juice and a company logo
insurance, in case some kid drinks your juice and the parents get sue happy
a few vendors might deny receiving your juice..
don't create a min price sell.. if you do, you might have other vendors calling on co vendors about others selling at below cost..

not to mention your time thoughts and other expenses..

 

[Botboy141]

I've run a few successful ventures over the years (none vape-related). When estimating hard costs, I've found a good rule of thumb is to list every possible expense I can imagine (as you've done) - then double it. Reality usually comes close.

With e-juice sales, you will have lost shipments, bad payments, have to provide some refunds, might want/need to provide free samples, self-employment tax structure SUCKS, PayPal/credit card companies/eBay take their share off the top, retailers need to buy a license, there will be accidental waste/spoilage, etc.

It's also not unreasonable to double the estimate of your personal time required. When you sell any product, you have to meet licensing requirements for your area, keep sales and tax records, fill out and file forms, deal with various gov't bureaucracies (federal, state, city, sometimes separate special tax districts) - lots of unexpected demands on your time. Penalties for trying to cut any corners there are prohibitive.

If the numbers still come out in your favor, you're good to go. If not, time for more planning before a launch.

Just saw this. This is absolutely phenomenal advice HIC!

 

[Botboy141]

Is there a company I could contract out to mass produce my recipes in different nic levels and such? Can't find any info on the Google.

http://www.californiavapor.com/

Saw this link come through the other day. Looks like they are the ones that fill and label product for Space Jam if you look closely at the pictures.

They have a 750 run minimum so have to do 750 of the same flavor, same nic level as a starting point.

Edit: Additionally, I had someone approach me the other day about buying my recipes, manufacturing and selling them under their juice brand label. They are looking into inviting a handful of DiY'ers to do this. They are offering a 10% NET profit royalty on their sales.

It sounded great, until they informed me that their net profit per bottle is under $0.75. Way too much overhead for a company that is only in 20 B&M's IMHO, but if you would like details, I can send you this guys contact info via PM. Just shoot me a message.

FWIW, he made a post on reddit within the last week. Just found it for you.

http://www.reddit.com/r/DIY_eJuice/comments/2hc70o/help_wanted/

After speaking with him on the phone, I dunno, just had a weird vibe to me. 'Global supplier of ejuice' then he tells me he's only in 20 B&M locations, almost all in California and that they do minimal online sales.