“I think the reason you’re seeing more premium vaporizers on the market is because it’s getting more competitive,” said Pantelis Ataliotis, president of Dr. Dabber. “It’s getting tougher to stand out in the crowd … with a standard vaporizer.”
“There’s always room for great innovation,” said Tyler Goldman, CEO at leading vaporizer manufacturer PAX Labs. “Like in any typical tech business, the top companies are likely to be the few who have better offerings. Consumers migrate quickly to the best products.”
It’s a strategy that’s luring investors. In 2015, San Francisco-based Pax announced it had closed a $46.7 million Series C funding round, with Fidelity Management & Research Company and Sivia Capital among the investors.
Pax says that it has sold more than 1 million of
Over at KandyPens, another vape company, sales increased 350 percent last year to $6.5 million, founder and CEO Graham Gibson said. The company aims to cross $10 million this year.
Rather than relying on word of mouth for sales, as some vape companies do, KandyPens aggressively markets its products to consumers. It’s run full-page ads in publications like Rolling Stone and snagged celebrity endorsements with the likes of DJ Khaled.
KandyPens follows Apple’s example of offering new products each year. Some 25 to 30 percent of the company’s existing customers upgrade when those roll out, even if the products aren’t dramatically different, Gibson said.
“Last March, we launched the Gravity. This year, in January, we launched the Elite. It’s the same pen with a different finish and a different name — and we charged $10 more per unit,” Gibson said. “Once people are sold on a brand, they’ll buy whatever product you have coming out. And they’ll give their old product to a friend.”
The growth rate at Dr. Dabber has been just as impressive. Ataliotis estimates a sales increase of 400 percent to 500 percent over the past two years. And while he won’t make that same prediction for upcoming years, he’s optimistic about the growth potential.
“Because this industry is so new, there are so many opportunities to make new products,” he said. “It’s not like everything that can be thought up has been thought up. … What’s out on the market is, for the most…