Among the states that have legalized marijuana, the choices for cannabis dispensaries vary significantly from one state to another.
While some places such as Denver, Colorado offer numerous dispensary options to the cannabis consumers, others have very limited number of dispensaries.
Legalization in more states will increase access to cannabis dispensaries, and states where pot is already legal are also likely to see more dispensaries coming up in the near future.
Looking at the market trends, it is likely that the marijuana business will grow highly competitive in the years to come and even more so since more people and businesses have money to invest because of the lower taxes that came into fruition in 2017.
If you own a cannabis dispensary at present or plan to own one at some point in time in the future, here are a few ideas for you to build your consumer base and revenues for a successful cannabis enterprise.
Culture, Brands, and Products
The foremost thing to remember is that many of the regular cannabis users follow a unique sub-culture. You should capitalize on this fact to run a successful cannabis dispensary.
Also, you must not be restrictive when it comes to building your inventory of cannabis brands and products. Even if you feel very strongly about certain choices of brands, it is always better to diversify the product range you offer at your cannabis dispensary.
In addition, you should focus on offering strains of all varieties – sativa, indica, and hybrid. Do not limit your offerings to traditional cannabis buds, and try to include a constantly expanding range of balms, edibles, and patches in your product mix.
To address the needs of a wider consumer base, try to offer products that are high in THC as well as the ones that are high in other cannabinoids.
Strategies to Gain a Greater Market Share
Pricing is the heart and soul of cannabis retailing through dispensaries. Price is especially important if you live in an area which already has an intense competition from multiple cannabis dispensaries.
Your goal should be beat your competitors in pricing, and manage pricing smartly with occasional sales and discounts to grab the attention of new customer.
Secondly, you should have a batch of helpful “budtenders”. Make sure that the people you hire are trained to serve your customers well. You should also educate your budtenders about all the products and brands you offer, so that they can answer the customers’ questions and help them make informed choices.
Smart Business Moves
Finally, you should know that cannabis consumers are not one-time clients. They will remain loyal to your dispensary if they trust you and feel good to buy from you. Recognition is important for the repeated users. You should create small but innovative programs to reward your customers for being loyal.
You can use promotional techniques such as in-store contests, buy one get one free, referral programs, and special sales and discounts to gain the attention of new customers. A loyal client base and repeat business is vital to the long-term success of your cannabis dispensary.
You have to work hard unlike Saul Silver was doing in Pineapple Express!
ShowGrow currently has 3 dispensary locations: Long Beach, California, Santa Ana, California and Las Vegas, Nevada where Body & Mind is headquartered. A 4th location in San Diego, California is also currently being built out.
One of the main reasons this is a smart is the brand is already established, companies are flooding into California trying to start cannabis brands left right and centre. Building a brand in a market like California right now is what many companies are doing as cannabis culture in the state is huge. Because the brand is already established this will give BaM near term revenue growth as cash is already coming into the business.
According to BDS analytics, In California, the cannabis edibles sector had $306 million in legal retail sales from March to December 2017, representing approximately 13% of all cannabis retail sales in the state.
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