In recent years, the emerging market and global industry consisting of electronic cigarettes and comparable products has been able to grow faster and progress farther than many industry experts, critics and even consumers expected at first. There are quite a few different companies and manufacturers that have been able to release their own brands and distinctive models within this global market over the years, striving to obtain a competitive edge that will set them far apart and even ahead of their competitors. Vapor Corp, on the other hand, has been able to create a distinctive image for their company in a completely different way.
A Publicly Traded Company
One of the biggest selling points that Vapor Corp has over many of their competitors is that it is the only publicly traded, fully reporting electronic cigarette company throughout all of the United States. This is definitely an achievement that has been praised and applauded on many different levels, especially from a corporate perspective of investors and a financial perspective of stockholders.
At one point in time, Vapor Corp was struggling and suffering from large deficits and major losses. However, in recent years, they have been able to completely turn things around – transforming their past losses into present gains that forecast future growth. The actual company is fully flushed with cash and has progressively expanded into a wide variety of products that are being offered by other retailers.
- Top-notch supplier of eCigarettes primarily because of their diverse portfolio of products and recognizable brands that are familiar and commonly recommended by critics, consumers and other retailers.
- Vapor Corp is the only publicly traded, fully reporting eCigarettes company in the country
- Uses celebrities as popular spokespeople to advertise and promote their leading products through televised commercials and online ads
Key Points to Consider When Analyzing Sales Figures
- 3rd Quarter 2013 Sales: $6.4 million (66.3 percent growth from 3rd quarter 2012 sales)
- Keep in mind that the cost of goods that were sold increased well over 50 percent from the previous year as well, which lines up appropriately with the increased sales volume.
- The $1.25 million deficit from the 3rd quarter of 2012 was clearly forgotten since Vapor Corp was able to generate an operating income of close to $400,000 in the 3rd quarter of 2013. In comparison to a net loss of close to $820,000 from Q3 2012, Vapor Corp was able to average a net income of over $280,000 in the same quarter of 2013.
What Does the Future Hold?
The future of Vapor Corp looks very good and filled with positive growth and sales opportunities. Keep in mind that the consumer demand for these healthy alternatives to tobacco smoking will only grow in popularity. If Vapor Corp eventually take a large market share directly from major companies within the prevalent and powerful tobacco industry, some reports have confirmed that a buyout in the future is an inevitable possibility. One report states that a sizeable pullback of at least 15 percent will create a very profitable entry point and lucrative opportunity after a wise reverse split decision is finalized.
Room for Improvement
Going into the rest of 2014 and even into 2015, one major room for improvement when it comes to minimizing overhead expenses is to effectively reduce the expenses and long-term costs associated with advertising. As the popularity of Vapor Corp’s electronic cigarettes continues to increase over time, the consumer demand will also rise which will make it much easier for the company to spread the word through their consumers more and through traditional advertising less. They can also focus more on Internet ads and social media in order to maximize their exposure while also minimizing their expenditures.