---
title: "Open a Store for 50,000 Yuan, Recoup Investment in 3 Months: Snow+ E-Cigarette Franchisee Reveals Profit Secrets"
description: "This winter, Hohhot businessman He Wei expanded his five Snow+ e-cigarette franchise stores to ten. \"I will open 12 stores before New Year's Day next year,\" He Wei said. By the end of 2019, Snow+ will become the e-cigarette brand with the most franchise stores in Hohhot. The 55-year-old He Wei has experience in opening multiple chain franchise stores, including internet cafes and billiard halls. His first store was opened in the summer of 2019, with a cost of no more than 50,000 yuan, and the cumulative revenue in the first two months reached about 100,000 yuan. Snow+ operating data shows that in 2019, 85% of all Snow+ franchise stores recouped their investment within three months."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2019-12-06"
categories: "Management & Methods"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/iAFaje9X7yfBQipYbhBjLw"
translation: "https://xinjignxiao.com/zh/articles/5%E4%B8%87%E5%85%83%E5%BC%80%E5%BA%97-3%E4%B8%AA%E6%9C%88%E5%9B%9E%E6%9C%AC-%E9%9B%AA%E5%8A%A0%E7%94%B5%E5%AD%90%E7%83%9F%E5%8A%A0%E7%9B%9F%E5%BA%97%E8%80%81%E6%9D%BF%E6%8A%AB%E9%9C%B2%E8%B5%9A%E9%92%B1%E7%A7%98%E7%B1%8D-fc4621a4.md"
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citation: "New Distribution. “Open a Store for 50,000 Yuan, Recoup Investment in 3 Months: Snow+ E-Cigarette Franchisee Reveals Profit Secrets.” New Distribution, 2019-12-06. https://xinjignxiao.com/en/articles/open-a-store-for-50-000-yuan-recoup-investment-in-3-months-snow-e-cigare-fc4621a4/"
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---

# Open a Store for 50,000 Yuan, Recoup Investment in 3 Months: Snow+ E-Cigarette Franchisee Reveals Profit Secrets

> This winter, Hohhot businessman He Wei expanded his five Snow+ e-cigarette franchise stores to ten. "I will open 12 stores before New Year's Day next year," He Wei said. By the end of 2019, Snow+ will become the e-cigarette brand with the most franchise stores in Hohhot. The 55-year-old He Wei has experience in opening multiple chain franchise stores, including internet cafes and billiard halls. His first store was opened in the summer of 2019, with a cost of no more than 50,000 yuan, and the cumulative revenue in the first two months reached about 100,000 yuan. Snow+ operating data shows that in 2019, 85% of all Snow+ franchise stores recouped their investment within three months.

This winter, Hohhot businessman He Wei expanded his five Snow+ e-cigarette franchise stores to ten. "I will open 12 stores before New Year's Day next year," He Wei said. By the end of 2019, Snow+ will become the e-cigarette brand with the most franchise stores in Hohhot.

The 55-year-old He Wei has experience in opening multiple chain franchise stores, including internet cafes and billiard halls. **His first store was opened in the summer of 2019, with a cost of no more than 50,000 yuan, and the cumulative revenue in the first two months reached about 100,000 yuan.** Snow+ operating data shows that in 2019, 85% of all Snow+ franchise stores recouped their investment within three months.

At this stage of major changes in the e-cigarette industry, he has not stopped. So, what is his method for maintaining stable profitability in offline stores?

**Q: Why did you choose Snow+ for franchising?**

**A: Low investment, low cost, and quick returns.** Snow+ offers very favorable franchise conditions: zero franchise fee, subsidies for store design and decoration, as well as gift packages of goods subsidies and promotional materials (such as display racks, disposable mouthpieces), and the preparation time is minimized to 15 days before opening for business.

**Q: How do you choose the location for your stores?**

**A: In shopping malls, I focus on three layout points: the dining floor, the shopping floor, and the entrance.**

For example, in Victoria Center, I have two stores in the same mall: one on the dining floor and one on the shopping floor. Although the dining floor has significantly more foot traffic during certain times, consumers on the dining floor have very clear intentions; maybe only 4-5 people come to the store a day. In contrast, more people from the shopping floor come to the counter to buy cigarettes, sometimes over a dozen. So in the future, when I open new stores, I will prioritize the shopping floor.

The mall entrance actually has the highest foot traffic. I opened one at the entrance of Hualian Supermarket, with a daily foot traffic of 5,000-6,000 people, but sales are not as good, and few people come to ask. This is because the supermarket's customers are mostly elderly, not our target group.

**Q: What techniques do you use when stocking up?**

**A: For devices and pods, I stock them in a 1:3 ratio because pods are consumables.**

In terms of flavors, initially I stock all flavors evenly, but after a month of data statistics, I adjust the ratio based on flavor popularity. For example, for mint and cola flavors, I stock them in a 100:1 ratio (100 mint, 1 cola).

Finally, regarding product nature. Products like Snow+'s new "Lingdong Series" (1 device + 1 pod) offer high cost-performance and follow a fast-moving consumer goods (FMCG) channel, so selling them in places like supermarkets actually yields better sales. The first batch of "Lingdong Series" (about 50 units) I stocked in November sold out within half a month.

**Q: How do you plan the store layout?**

**A: First, place it in the most prominent position.** I put the "Lingdong Series" at the front of the counter, right next to the 298 yuan set. When interested customers come to ask, they can see it at a glance, and if they think the 298 yuan price is too high, they can immediately switch to this more cost-effective option.

**Second, display small but refined.** Our original store had two display racks on the counter, but they had too few slots, only 6, so customers couldn't see all our flavors on one rack. Now we've switched to racks with 12 slots, so one rack can introduce all our flavors, saving costs and being more convenient.

The transitional "Lingdong Series" is placed in the most visible position on the counter for customer convenience.

**Q: What are your requirements for store staff?**

**A: Our staff, whether during opening or promotions, must go out and shout "Snow+ e-cigarettes."** First, to sell products, and second, to make an impression so that when people want to buy e-cigarettes in the future, they think of us first.

Second, I require our staff never to say anything bad about other brands. E-cigarettes are still a niche market, and the industry as a whole rises together, so there's no need for underhanded tactics.

**Q: How do you attract new customers?**

**A: It's crucial to capture customers with purchase intent.** In two of my stores, we encountered a situation: a couple came to buy e-cigarettes, the man was willing to buy, but the woman was reluctant, thinking the price was too high or that smoking is harmful. The staff let them go, losing three sales. But in another store, the staff knew how to persuade the woman. When the woman worried about the harm of e-cigarettes, our staff specifically explained that compared to traditional cigarettes, the harm is lower, and secondhand smoke is also less harmful. In the end, not only did they make the sale, but they also added the girl's WeChat.

In one of our stores, we once sold 12 sets in a day, but only 15 groups came to look, achieving an 80% conversion rate.

In one of He Wei's stores, a staff member explains e-cigarettes to a customer.

**Q: How do you retain regular customers?**

**A: I came up from sales, so I know the importance of service.** Since I started with Snow+, I've been handling after-sales myself. If there's a problem with the device, it can be replaced for free; if you don't like a pod, as long as it's unopened, it can be exchanged. After I started this, the first after-sales replacement was 28 devices, and the second time it was 50. Retaining these device users increases the repurchase rate of pods.

Secondly, we now release new flavors about once a month. Before a new flavor comes out, I also tell the customer group that a new flavor is coming and they can exchange unopened old flavors for it.

**Q: Do you have any tips for clearing inventory?**

**A: You need to know what inventory you have and use it flexibly in combination.** For example, if I have a lot of pods, I'll launch a promotion like "Buy 3 boxes of pods, get 1 device free," which is more cost-effective than selling the 298 yuan set directly. Such a combination can sell 3-4 times more than the 298 yuan set in a day.

**Q: How do you view Snow+'s new version of Lite (Lingdong Series)?**

**A: The transitional "Lingdong Series" has already sold very well, with monthly sales of 150 sets.**

The new "Lingdong Series" will have two major advantages: first, compared to other brands, we sell the same material at one-third the price, with better quality and higher cost-performance; second, the capacity has increased from 1.5ml to 2ml, and the vapor output has increased by 37%, which can convert more customers.

The "Lingdong Series" well reflects Snow+'s market layout awareness, using it as an FMCG to impact the small cigarette and other brands. And with the transitional version testing the waters and establishing a foundation, the new version will have a broader market.

**Q: If someone asks you, what about the deaths from e-cigarettes in the US?**

**A: We explain to every customer with such questions: the cause of death is not e-cigarettes, but the illegal marijuana components artificially added.** We also train every current staff member on this.

**Q: So are e-cigarettes harmful or not?**

**A: Previously, Tsinghua University released a blue book on e-cigarettes, stating that there is no definitive research result on e-cigarettes.** However, the World Health Organization's research reports from 2014 to 2019 show that compared to traditional cigarettes and IQOS-like heated tobacco products, e-cigarettes are definitely less harmful.

Moreover, in other countries, e-cigarettes are not banned; they are just classified under different categories and subject to different regulations. Some countries strongly support e-cigarettes, like the UK, which allows consumers to vape in public places and supports e-cigarette stores in hospitals. I think everyone should face e-cigarettes squarely.

**Q: What have you been doing since the "E-Cigarette Notice" was issued?**

**A: After the notice, I temporarily slowed down the pace of distribution because I needed to study and observe the policy.** But later I found that it only banned online sales, not offline, so I actually accelerated my franchise store expansion because there would be many outlets. In October, I only had 5 stores, but by the end of November, I had 10. My own stores are more suitable for selling goods, and I don't have to worry about many obstacles.

Moreover, the core of the notice is to protect minors, so I have taken many additional measures in this regard.

Franchisee He Wei checks the inventory sheet with his staff.

**Q: How do you protect minors?**

**A: First, according to Snow+'s regulations, we do not sell products to minors offline; including myself, as a distributor, I do not stock products in stores near primary and secondary schools.**

Second, in our stores, we place a sign saying "Minors are prohibited from purchasing"; if our staff suspect a consumer is a minor, they will ask for identification.

**In short, we cannot earn money that goes against our conscience.**

**Q: Why are you optimistic about Snow+?**

**A: I've been cooperating with Snow+ for less than half a year, but I think Snow+ has the fastest growth among all e-cigarette brands.** Whether it's the speed of product iteration or the number of offline stores. Snow+ has a very good sense of market layout, especially reflected in the latest "Lingdong Series," which impacts the small cigarette market and matches my pace very well. There are also reports that Snow+ has reached 100,000 stores within half a year; they really have been working hard.

We are willing to grow together with such a young and ambitious company. And in this process, Snow+ has indeed made us money. In the first month, my first store achieved sales of 60,000 yuan, which already recouped my investment; now with 10 stores, we still maintain profitability. At the same time, as brand awareness grows, more and more shopping malls are inviting me to open stores.

**Q: As a franchisee, are there any other policies from Snow+ that give you peace of mind?**

**A: Just now, in the contract for franchisees and distributors, there is a clause: "If e-cigarettes are prohibited from offline sales due to changes in laws and regulations or national policies, Snow+ is obliged to repurchase the Snow+ e-cigarette products in the distributor's inventory." This is a very strong commitment and backing.**

But as a franchisee, because I have offline stores, I don't worry about inventory issues; I am fully capable of clearing it myself. However, Snow+'s commitment also gives us more peace of mind!

**Q: As a franchisee, do you have any expectations or suggestions for Snow+?**

**A: There might be a few points:**

1. Since online sales are banned, I hope there can be other ways to attract traffic; offline location selection is a relatively good method.

2. Snow+'s activities could be more tailored to local conditions. For example, during the previous Double 11 event, my store sold out the activity sets in one day.

3. I hope there will be more products like the "Lingdong Series" that suit various channels and can cater to consumers in different scenarios.

A reward of 400-2000 yuan will be paid once the tip is adopted.


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## Citation metadata

- Publisher: New Distribution
- Author: New Distribution
- Published: 2019-12-06
- Canonical: https://xinjignxiao.com/en/articles/open-a-store-for-50-000-yuan-recoup-investment-in-3-months-snow-e-cigare-fc4621a4/
- Original source: https://mp.weixin.qq.com/s/iAFaje9X7yfBQipYbhBjLw

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