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I ran a headshop for many years and the legal high market existed long before mephedrone. It was all a bit shit but it was there. (who remembers Yellow Subs - I think they were ok!) Nothing has changed since the 1970s - manufacturers continue to push the law to its limits, frequently using banned but little known ingredients until they get sussed then they stop. Even the ingredients in poppers has changed several times to keep in line. Many local authorities don't like headshops, they try to bust them on tenuous grounds and generally fail as long but only as long as the shop knows their stuff and stays legal. We always employed people who had no interest in drugs - far safer. Employ druggies and you are playing with fire.
I got out of the business (no thanks due to the Duke of Westminster) before mephedrone thank god. The worst thing about running a headshop is not the law - its the endless procession of complete fuckwit and ignorant wanker customers.