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Marijuana, also known as cannabis, is the most widely cultivated and used drug around the world, according to the UN World Drug Report. The push towards its legalization has contributed to its popularity. Many researchers, manufacturers, and investors are now turning their attention towards this drug. It is estimated that U.S cannabis businesses will contribute […]
Marijuana, also known as cannabis, is the most widely cultivated and used drug around the world, according to the UN World Drug Report. The push towards its legalization has contributed to its popularity. Many researchers, manufacturers, and investors are now turning their attention towards this drug. It is estimated that U.S cannabis businesses will contribute about $130 billion yearly to the American economy by 2024. Even with the COVID-19 pandemic bringing uncertainty across business sectors, the cannabis industry still heads toward its long-term fiscal trajectory.
Starting a legal cannabis dispensary in your community is a great business idea. But it’s not a smooth journey. You have to navigate past the regulatory web, arm yourself with the required financial resources and look for a reliable workforce. This, however, is not the most challenging part of starting a cannabis business.
The real challenge lies in the introduction of the drug to the community. Creating a successful business means researching how the industry works, the major players, the legal landscape, market projections, and strategies.
Here are tips to help you successfully introduce a cannabis dispensary to the community:
The marijuana pop culture has portrayed weed users as unmotivated and lazy. Yet, the actual demographics of cannabis users are as varied as the products you intend to sell in your dispensary.
It’s crucial to understand different buyer personas. It helps you generate and disseminate the correct marketing information to the right people. Given that insights about cannabis users are hard to find, adopting a grassroots approach enables you to learn more about your target audience. You may need to interview prospective customers before opening your dispensary.
Here are examples of the different categories of real-life weed users.
Marijuana dispensaries still grapple with negative stereotypes and wrong perceptions in many communities. Despite the growing legalization and recognition, the industry still has a long way to go. Most people don’t view this drug in the same light as alcohol and cigarettes.
Consider your role as the owner of a marijuana dispensary to be the envoy or messenger of the industry. Visit every local business or home and have frank conversations about marijuana use. You can also market your products locally with upbeat messages. The onus is on you to educate the community about your shop and beneficial marijuana strains.
There are limited options available when it comes to advertising your marijuana dispensary. In fact, some states bar any form of promotion. So, how do you achieve successful outreach without openly advertising? Give back to the community.
Engage in philanthropic activities across the community. This approach helps with brand awareness despite the stringent regulatory measures put in place. People often support organizations that support them. You will also make new friends and campaigners in the process. The good news is that it may not cost much.
Just like community education, this is also part of community outreach. The idea is to participate in community events that may provide a table or booth for your business. These include:
In return, you can promote your cannabis dispensary by handing out flyers and redeemable coupons. This helps portray your business as a reputable part of the community. It might also help dismiss misconceptions of cannabis dispensaries being dirty businesses.
Profit equals revenue minus operating costs. Often, the challenge lies in optimizing price, quantity, and expenses to generate profit.
Let’s assume that you want to set up a cannabis dispensary in a working-class community. Typically, these potential customers are always looking for a good bargain. Based on this specific knowledge, you may want to compete on price.
The motive here is for your dispensary to become the one-stop-shop for the lowest-priced weed products on the market. If you set low prices, then your cannabis sales volume must increase. This means that you have to develop a knack for negotiating reduced product costs compared to your market competitors
Different factors influence a marijuana pricing strategy. These include competition from black and white market vendors, population demographics, demand, and value addition. It’s important to understand how these factors work. This way, you will be in a better position to make good pricing decisions.
It’s a very exciting time to be part of the cannabis industry. Akin to the gold rush, everyone wants to help themselves to a serving of the marijuana pie. However, given the short history of the marijuana industry, it’s pretty uncertain how the market will unravel.
Consider the tips mentioned above if you are planning to set up a cannabis dispensary in your community. It doesn’t matter where you intend to introduce your cannabis business. Success in the industry is determined by the connection between your brand and the local cannabis community. That’s what will set you apart from the competition.