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Since the advent of the dabbing industry, it has been one of the fastest-growing industries in the world. In recent years, people have become more and more concerned about their health, so a large number of smokers have switched from tobacco to safer alternatives.
Many young dab pen users are good at creating the fun and novelty of the dabbing experience, which makes everyone more interested in joining the industry.
If you are considering starting a dabbing business, understand all the pros and cons before making a decision.
Pros:
1. Various business opening methods
There are various ways of dabbing in business, such as:
How to start a dab pen shop? Here are the guidelines.
Open an online dab pen shop and use e-commerce to realize the function of online purchases, which can save the cost of store rental.
Open your own dab pen brand—you can go to China to find a reliable dab pen manufacturer to customize the dab pen brand for you.
Open a concentrated brand—Look for a suitable concentrate manufacturer in the local area and talk about customized strategies.
2. Diverse Product Range
Dabbing isn’t limited to just one type of product. Concentrates come in various forms, including wax, shatter, budder, and live resin. This diversity allows you to cater to a wide range of consumer preferences, which can help expand your customer base.
3. Diverse user groups
The dabbing business is not just an alternative to tobacco, non-smokers love to use dab pens too. Where there is demand, there is a market to expand.
It is healthier for smokers to use steam instead of tobacco burning.
According to Public Health England, the vapor is 95% cleaner than tobacco smoke.
A 2017 study found that former smokers who used e-cigarettes for only half a year had lower levels of carcinogens and other toxic compounds than smokers who continued to smoke tobacco cigarettes.
For non-smokers but groups with special needs, e-cigarette CBD oil has many health benefits.
According to rigorous reviews conducted by the National Academies of Sciences, Engineering, and Medicine, marijuana can relieve chronic pain, chemotherapy-induced nausea and vomiting, multiple sclerosis symptoms, and many other symptoms of various diseases.
Users who purely like dabbing, pay more attention to the function, experience, and uniqueness of the dab pen.
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There will be an estimated 55 million e-cigarette users worldwide by 2021. (Euromonitor, 2018)
4. High Demand
One of the most significant advantages of entering the dabbing business is the high demand for cannabis concentrates.
As more states and countries legalize cannabis for both recreational and medicinal use, the demand for high-quality concentrates continues to rise. This growing market presents a lucrative opportunity for entrepreneurs looking to invest in the cannabis industry.
5. Profitable
According to industry analyst reports, it was valued at $6.09 billion in 2020 and is expected to grow by 27% by 2028. This value is still very considerable.
Compared to traditional flower products, cannabis concentrates and dab rig/dab pens often have higher profit margins. Since concentrates require specialized dabbing equipment, they can command premium prices in the market, making them an attractive option for business owners.
Before the dabbing market and competitors are saturated, there are still dividends to be earned when entering the dabbing business.
So if you want to start a dabbing business, you need to start as soon as possible.
6. Self-improvement
Becoming an entrepreneur is not easy. You will no longer do the same job every day. Because you may face new challenges every day and need to solve new problems.
You will start planning and planning how to grow your business and how to promote your company and products to increase sales.
And how to solve some problems, how to conduct more in-depth research on products, services, and customer satisfaction.
You will learn different knowledge to meet different needs, but this situation will be a very big improvement for you.
Cons:
1. It is not easy to obtain funds
To start and widen your dabbing business, financial support is definitely essential. However, due to the particularity of the dabbing industry, you may not be able to obtain loan funds directly from the bank.
Luckily, you have other options for getting funding, such as friend and family loans, and business personal loans are popular and achievable financing options for brand-new businesses.
2. Regulations are changing
Not only do federal regulations have many regulatory policies for the dabbing/vaping industry, but the regulations of each state or community may also vary.
And the regulations are not only for the United States, there are also restrictions on the manufacture, production, and export of dab pens in China.
Navigating the complex legal landscape can be a significant challenge for business owners, leading to compliance issues and potential legal troubles.
3. Manufacturers are mixed
To start a dabbing business, dab pen products and concentrates are definitely indispensable.
But not all manufacturers will provide you with high-quality products, many dab pen manufacturers offer friendly-looking prices in order to get the opportunity to cooperate, but also provide products of unfriendly quality.
So it is necessary to screen qualified manufacturers to establish a good brand image for your dabbing business.
4. Competition is fierce
The prevalence of vape shops in the USA, with a total of 9945 vape shops as of December 2015.
But now, the exact number of US vape shops is unknown.
What is known is that this number is still growing.
Several restaurants, clubs, shopping malls, and airports have dab shops, and now gas stations and convenience stores also sell dab pen products.
In this market environment, providing customers with high-quality products and good service is a very important factor in maintaining the competitiveness of your dabbing business.
Several restaurants, clubs, shopping malls, and airports have dab shops, and now gas stations and convenience stores also sell dab pen products.
In this market environment, providing customers with high-quality products and good service is a very important factor in maintaining the competitiveness of your dabbing business.
Please remember, that running a dabbing shop business is an extensive process. If you don’t do it right, it won’t make you successful.
Conclusion
The dabbing business offers both promising opportunities and significant challenges. Before venturing into this industry, it’s essential to carefully consider the pros and cons outlined in this article. A successful dabbing business requires thorough planning, compliance with regulations, a commitment to safety, and a clear strategy for standing out in a competitive market. If you’re willing to navigate the hurdles and stay informed about evolving regulations, the dabbing industry may hold the potential for profitable growth in the expanding cannabis market.
