The biggest problem dispensary owners are having is price competition from the Black Market cannabis providers. An illegal dispensary can sell for low prices because they don’t have the expenses that legal shops incur even though the illegal businesses run the risk of shut-down.
One new idea that might have some promise is California’s move to enable cannabis customers to find legal weed shops by using their smartphones. It doesn’t solve the problem of lower pricing available at the Black Market shops, but it is a move in the right direction that could serve to educate consumers. There are concerns among consumers about adulterated weed and other risks of buying from illegal suppliers.
While consumer education isn’t likely to solve all your problems anytime soon, you might want to take a look at the quality of what you are selling. After all, people will pay higher prices for a higher high. Don’t carry inferior products simply because they are inexpensive. Even if you have to take a lower markup on what you sell, if your customers can depend on finding the best product at your shop, they will return and they will tell their friends. Probably the biggest complaint from a shop’s customers is the unreliability of product quality. Is it fresh? Is it potent? A customer will always pay a little more for a reliable high. Improving the quality of your product also allows you to market the fact that you carry only the best weed products and that you stand by their quality.
List your bargains on your website. One successful chain of dispensaries sells older inventory at discounted prices, and people watch their website religiously to get in on deals. This tactic gets people in the door to buy $1.99 pre-rolls and that allows your budtenders to cross-sell other full-price products.
Sometimes it takes a partnership to operate a successful business. If you are only licensed to run a dispensary, find partners along your supply chain. Every business owner understands that reliable volume is better than maximum markups, so working together with growers, manufacturers, and distributors can help all of you reduce costs and increase sales volume. This is where working with a professional cannabis management consultant can save your business. Such consultants, like FTG Management Group, are in touch with other business owners throughout the industry who are looking to find a way to cut costs and increase business. They can place you with the right partners to fill in any gaps in what you are doing in your own operation.
The best business model, by far, is in controlling the supply vertical — cultivation, manufacture, distribution, delivery, and dispensary. Even if you can’t set up a vertical all of your own, you will be better off by working exclusively with other companies to build your own partnership vertical.
Want To Start A Legal Cannabis Business?
* Cultivating | Processing | Packaging | Transporting | Dispensary*
If you would like to start a cannabis cultivation, Distributions, Manufacturing, Extraction, Dispensary, Delivery Service, our courses are for you.
Learn from expert lawyers and cannabis industry professionals that help people start cannabis businesses everyday in California.
You will learn about your local laws, rules, restrictions and best possible business entities that are legally viable in your area. Our faculty attorney is on hand to discuss any legal question you may have regarding the formation of your new medical marijuana club, co-op farm, collective or dispensary!
Once business is aside – You will learn about the cultivation of medical quality cannabis,processing, and distribution from experienced farmers. They will teach you about handling, storage, weights & measures, and you’ll learn about medical marijuana business in California! DETAILS HERE