Anyone who has visited an area with a booming cannabis industry – whether a medical or adult-use market – is likely familiar with the scene: some storefronts have lines around the block while others are somewhat empty. In states where cannabis licenses are plentiful, the competition can be fierce. So how does a shop differentiate itself in a neighborhood or city and increase its market share?
In my experience working with hundreds of cannabis businesses across the country, I have found that it boils down to five factors:
1. Merchandise: Like any other retailer, cannabis shops first and foremost must know their customers and offer products they want. Different demographics demand different products. What sells in a sleepy suburban community might flop in a downtown city strip. Cannabis businesses need to understand their customers’ preferences and lifestyles. For example, shops should know if their customers prefer cannabis in flower, edible, vape, or concentrate form. They should stock their shelves accordingly and always be testing new products to see how they perform. Frequently, retailers are surprised by what products end up flying off the shelves.
– Read the entire article at Forbes.