Congratulations! You’ve decided to turn your passion for high-quality tobacco into a profitable small business. Now it’s time to learn everything you need to know about the world of smoke shops before your grand opening.
If your research has brought you here, you’ve probably come across a confusing but popular phrase: head shop. Since many people in the tobacco industry use the terms “smoke shop” and “head shop” interchangeably, it can be hard to tell them apart.
We’re here to clear the uncertainty, explain the key differences between head shops and smoke shops, and help you decide which type of small business you should open.
Head Shops vs. Smoke Shops: The Basics
Before diving into what sets head shops apart from smoke shops, we need to start with some definitions.
First, let’s talk about smoke shops. Smoke shops sell tobacco and accessories for smoking tobacco. Some of the most popular products you’ll find in smoke shops include cigars, cigarettes, pipes, loose tobacco, and hookah accessories. As vaping has grown in popularity, many smoke shops have added e-cigarettes and e-liquids to their offerings as well.
While smoke shops specialize in everything tobacco, head shops focus on cannabis-related products like pipes, tinctures, and other accessories — all made with or designed for consuming cannabis.
Even from these brief definitions, it should be obvious that head shops and smoke shops are very different. Now, let’s take a closer look at what sets them apart.
1. Product Offerings
One of the most obvious distinctions between head shops and smoke shops is what’s on their shelves.
Head shops offer everything customers need to smoke cannabis, including a variety of cannabis strains, glass and water pipes, grinders, scales, and more.
In contrast, smoke shops carry a broader range of products that appeal to all types of tobacco smokers. Here are some essential products to stock if you decide to open a smoke shop:
- Cigarettes
- Cigars and accessories like cutters and humidors
- Loose tobacco and pipes
- E-cigarettes and e-liquids
Along with these traditional smoke shop offerings, you might consider stocking trendy products like CBD, delta-8, and kratom. Just keep in mind that you’ll have to follow stricter regulations and secure high-risk payment processing through your point of sale (POS) provider.
2. Legal Status
While head shops are becoming more popular across the United States, they operate in a legal grey area. Some states have decriminalized cannabis, but this substance is still illegal under federal law. If you plan to open a head shop, prepare to navigate murky legal waters.
Smoke shops, on the other hand, have to abide by strict but clearly outlined state and federal regulations regarding tobacco sales. One of the most well-known and important restrictions is that you cannot sell tobacco or related products to customers under the age of 21.
Fortunately, the right POS system can make age verification easy. We recommend looking for one specifically designed with smoke shops in mind. That way, all your cashiers have to do is enter customers’ birthdates or scan their IDs to provide a quick checkout experience while preventing illegal underage sales.
3. Target Market
Since head shops specialize in cannabis, they appeal to an enthusiastic but small market. If you plan to open a head shop, your primary concern should be customer loyalty. Take the time to understand the unique identities, habits, and needs of your shoppers and tailor your product selection, decor, and marketing strategy to meet their preferences.
If you plan to open a smoke shop, your target audience will look a little different. You’ll carry a wider range of products, so your customer base will be more diverse.
As a smoke shop owner, your priority should be appealing to a broad range of potential customers, including everyone from fine tobacco enthusiasts to fans of trendy CBD brands.
Pro Tip: The best way to learn about your customers is to consult your POS system’s sales reports, which will reveal your overall sales trends, customers’ shopping habits, and bestselling products.
4. Branding and Atmosphere
Another significant difference between head shops and smoke shops is the in-store atmosphere.
Since head shops appeal to a niche audience, they typically have an eccentric, counter-culture vibe. If you visit your local head shop, you’ll probably see neon, psychedelic decor adorning the walls and hear reggae or rock and roll music coming from the speakers.
Smoke shops, on the other hand, often have more subdued branding. If you plan to open a smoke shop specializing in fine cigars and loose-leaf tobacco, you’ll probably go for a more polished, luxurious aesthetic, with leather decor, soft lighting, and wood accents.
If your smoke shop will mainly sell cigarettes and vape products, you might lean more casual, with bright window lighting advertising your selection and clearly labeled shelves to help customers find their go-to products.
Related Read: Smoke Shop Decor: 5 Modern Smoke Shop Design Ideas
5. Marketing and Promotions
One final distinction between head shops and smoke shops is their marketing and promotion strategies.
Since their goal is to attract a niche but dedicated group of potential customers, head shop owners often take a grassroots approach to marketing. For example, they might host monthly meet-ups for cannabis enthusiasts to connect, chat, and try out new products. To make a bigger impact, head shops might sponsor local music festivals or other community events.
Smoke shop owners have a tougher job of attracting a wide range of customers and competing with steep competition, so they tend to take a more comprehensive approach to marketing. Here are a few strategies to keep in mind as you craft your smoke shop marketing plan:
- Enticing promotions like mix and match deals can bring new customers through your door.
- Creating kits for cigar or vaping beginners can encourage customers to try out new products.
- A customer loyalty program can encourage shoppers to rely on your smoke shop for all their tobacco needs.
A combination of ongoing promotions like a customer loyalty program and short-term opportunities will keep a steady flow of customers coming up to your checkout counter.
Head Shop vs. Smoke Shop: How To Start Your Small Business Journey
That’s everything you need to know before you decide if the small business of your dreams is a head shop or a smoke shop! Let’s do a quick recap:
- If you’re passionate about cannabis and willing to navigate complex legal challenges, then opening a head shop might be right for you.
- If you’re looking for a small business opportunity with a broader potential customer base and more lenient legal restrictions, then opening a smoke shop is your best bet.
If you’re ready to start your smoke shop journey, your next step is to invest in a powerful POS solution designed with the tobacco industry in mind.
Designed by and for smoke shop owners, Cigars POS has everything you need to run an efficient and profitable business, including built-in age verification, carton-pack inventory management, high-risk payment processing, and sales-boosting customer loyalty program options.
Take Cigars POS for a spin by scheduling your live, personalized demo today!
