Post-VPD margin analysis shows that prefilled pod systems offer the best gross margin at 45-55%, as customers accept the tax-inclusive price as part of the product cost. E-liquids at 10ml see the most compressed margins due to the flat £2 tax, bringing typical margin down to 30-35%. Hardware (devices, coils) remains at 40-50% margin as it is not directly taxed.
Retailers should prioritise shelf space to products with the best margin: pod systems and hardware. E-liquids should be stocked but not given premium shelf position. Disposables, where still legally sold, carry thin margins due to both the tax and competitive pricing.
TrackElf's turnover reports show your actual margin by category, so you can make data-driven shelf decisions.