It’s not a secret that the cannabis marketplace is a bit oversaturated at the moment. There are so many growers in the space right now, that many are struggling to compete amongst a noticeable oversupply. Luckily, our Sales Manager, Hannah Hayes, is sharing her top tips for how growers can survive and compete when the competition is steep.
Tighten Costs and Operations
To be able to compete in a saturated market, you need to be able to make the most of your resources. Whenever possible, you need to identify how you can tighten your costs and operations. Awareness is key here. How much does it cost you to produce a pound of cannabis? Did you account for labor costs? How about transportation? Break it all down so you can see where you’re spending your money and where you can tighten your operations. Having proper procedures in place will help. For example, conducting an ABC analysis regularly will help you prioritize the right inventory to keep in stock.
Setting up procedures that will help you keep an eye on your spending is especially important for newer business owners who really need to make the most of every dollar that comes in. This is even more true when trying to compete amongst oversupply.
Plan for Proper Storage
When the time comes to sell your stock, the last thing you want to discover is that your supply has been ruined by mold, fungus, or pests. Properly curing your flower will help your stock last longer and will save you a lot of money down the line. Many growers, especially those who are new to the industry, focus so much on their growing space that they don’t leave enough room for a proper cure and storage space. It’s important to take curing seriously if you want to save money and provide the best product possible to your customers.
Have a Marketing Plan in Place
According to Confident Cannabis Sales Manager, Hannah, one mistake many cannabis business owners make is not devoting enough time and resources to marketing their business and building brand awareness. She recommends hiring help if you lack the ability, or interest, to market your products and services. Instagram not your forte? That’s okay! There are plenty of freelance social media managers who will be more than happy to help you grow a presence on the platform.
No matter what marketing path you pursue, it’s important to get your story out there. Hannah noted that the cannabis brands that are most successful have told their story to consumers and make sure they know their name. “Telling a story, finding your voice, and being consistent with it, will help you build a following,” Hannah advised.
Don’t Be Afraid to Follow Up
As our Sales Manager, Hannah knows a thing or two about closing deals. One of the biggest mistakes she sees growers make is not following up with dispensaries. She explained that dispensary owners are extremely busy and a lack of follow up on their end to place orders doesn’t necessarily mean they aren’t interested in working with you. She urges growers to be persistent and follow up with dispensaries. “Don’t assume that they’re going to hit you up when they’re running low,” Hannah advised, “Make sure that you’re checking in with them, review how product is moving and see how the staff and customers are responding to your products so you can take that feedback and figure out if there’s any improvements that you need to make.”
Not sure when the best time to follow up is? Confident Cannabis Wholesale subscribers can take advantage of Restock Insights 2.0 (a Metrc powered feature) to stay on top of their restock needs, see what products are selling best for them, better plan their inventory, and gain valuable insights into where their products sell best so they can better target their marketing and sales efforts.
Many of the struggles cannabis entrepreneurs face, especially when it comes to oversupply, are caused by legal hurdles and extremely high tax burdens. The solution? Community involvement. “We have to build the industry that we want,” Hannah explained, “and the only way to do that is to continue to engage with local and statewide elected officials.” Go to your city council meetings when they are discussing cannabis related regulations to share your perspective on roadblocks that your business is facing. The only long term solution to the oversupply issues plaguing state markets is federal descheduling and interstate commerce. Participate in local organizations that are fighting for a safer and more effective cannabis industry. Don’t be silent and get involved where you can.
Hannah feels that community involvement is something everyone in the industry needs to take seriously, “By coming together, we can make our voices louder.”