Start A Head Shop - Business Ideas

Pat Walls

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Updated: September 15th, 2022

Start A Head Shop

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A head shop is a retail store that specializes in selling a variety of products related to the use and consumption of cannabis. These products can include pipes, bongs, vaporizers, rolling papers, and other smoking accessories.

To run a successful head shop, you will need various products to appeal to different customers. You will also need to be knowledgeable about the products you are selling and able to educate your customers on the different options available to them. It is also important to understand the laws and regulations surrounding the sale of cannabis-related products in your area.

The benefits of running a head shop include the opportunity to be a part of the growing cannabis industry and the potential for high-profit margins. Additionally, you will have the chance to create a unique and welcoming atmosphere for your customers.

Overall, a head shop is a unique and potentially lucrative business opportunity for those interested in the cannabis industry and its culture. You can create a successful and thriving business by offering a wide range of high-quality products and providing excellent customer service.

Starting a head shop requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell smoking products, or selling smoking products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a head shop ➜

Key Stats

market size

$33.1B

starting costs

$18.9K

gross margin

43%

time to build

270 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

See all startup costs ➜

Successful Businesses

Business	URL	Rank
Smoke Cartel	smokecartel.com	47,904
420 Science	420science.com	88,760
Greenlane	gnln.com	123,374
Everything For 420	everythingfor420.com	160,438
DankGeek	dankgeek.com	184,450
All in One Smoke Shop	allin1smokeshop.com	185,493
Toker Supply	tokersupply.com	244,917
Smoketokes	smoketokes.com	246,889
Elephantos.com ★ Online Smart Shop, Head Shop & Seed Shop	elephantos.com	309,449
Boar's Head	boarshead.com	329,931
Elev8 Glass Gallery	elev8glassgallery.com	448,710

See all businesses ➜

Pros & Cons

Pros	Description
Rewarding work	Starting a head shop can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections	You never know who you will meet as a head shop. This could be the start of an incredible business opportunity!
Daily physical activity	Head Shop's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts	Working in the head shop comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss!	With starting a head shop, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community	One of the best parts of starting a head shop is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your head shop, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins	The gross margins for your head shop are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover	In the head shop, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes	As a head shop, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Marketing Ideas

1

Direct Sales

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

See all marketing ideas ➜

Key Stats

Startup Costs

Successful Businesses

47,904

88,760

123,374

160,438

184,450

185,493

244,917

246,889

309,449

329,931

448,710

Pros & Cons

Marketing Ideas

Direct Sales

Word of mouth

Social Media Advertising