Why Should I Bother to Market a Dispensary?
Sears & Roebuck, once the world’s largest retailer, is now selling off their Crown Jewels before their demise. Did you know that in the 1970s, 1 out of every 200 working Americans was employed by Sears? The company was producing 315 million catalogs a year, making it America’s largest publisher at one point. Decades later, poor strategy is retiring this former giant. If their business can tank, so can yours.
Build It and They Will Come…
This used to be true — back when cannabis was underground and your shop was the single source in a particular neighborhood. This is changing, as dispensaries are as pervasive as Starbucks, often opening across the street from each other. In some areas, people can walk to FIVE dispensaries from their front doors.
At one time, there was a Sears in every town. Times change. How people buy changes, and who people buy from changes.
Do You Know Who Your Ideal Customer Is?
You’d be surprised how many cannabis businesses don’t profile their customers. It’s incredibly valuable to have intel on your buyers before you load up the shelves with expensive inventory. How old is your ideal customer? What do you want them to spend per visit? What would delight them? How do you make your selections more interesting, valuable, and relevant to your audience?
Sears didn’t move with the times. They relied on their old business model and beliefs, feeling they were too established to be challenged by new retailers and new marketing approaches.
Don’t fall victim to the same mistakes that plagued Sears. 4Blooms can help you develop a comprehensive cannabis marketing strategy. Overall business, legal, and IT/cybersecurity guidance to help you operate smarter in this competitive environment. Contact us now to get started on your custom campaign and to plug into our network of professionals.
It’s a Beauty Contest…Looks matter.
You’re competing against new spa-like environments that serve up cannabis like the customer is at Neiman-Marcus or that have grow houses attached for a Farm-to-Vape vibe. Your dusty, boring, dungeonesque, gangster vibe may not retain your juicy, well-heeled customers that have been coming to you because you’re the only game in town.
Market Share: “We’re Selling to Everybody!”
Ask Sears how well this strategy went for them. In 1931, Sears’ revenue totaled $180 million, around $2.8 billion adjusted for inflation. That’s a LOT of sales for the time and even today. But they started losing market shares to Walmart, Amazon and other retailers who went after niche buyers: cheaper, more expensive, online, more self-educating about products. While they sat still in their old ways, everyone cherry picked away the segments they wanted from Sears.
Today, people want perceived specialists, companies who “get” them and have the products they love. What’s the point of your dispensary, what’s your story and vision, who are you appealing to? They are also looking for unique buying experiences; what is your customer’s experience? Will they remember it and share it with a friend?
Not afraid you’ll lose market share yet? You should be. Investors across the U.S. and in other countries like Canada have their eye out for the most profitable cannabis business opportunities.
Budgeting for Cannabis Businesses
In a competitive market, an existing cannabis business can allocate 20% of their revenue to marketing. It’s an investment that when done well, pays handsomely. Focused, target cannabis marketing is fuel to grow your business and in today’s marketplace, stake your claim to customers.
Budget allocation for a new dispensary? Depending on your circumstances such as visibility, local advertising rules and competition, 20-30% of desired revenue. After all, this is a business and these are business best practices.
Get In the Now with High-Powered Cannabis Marketing
The cannabis market is accelerating at lightning speed. Perhaps it’s time to join the innovation happening around your new or existing dispensary. Get in touch with us today- we’re happy to give you a free assessment and make recommendations to help you compete in the exciting new cannabis economy.
- Investopedia, Jan. 4, 1018: Who Killed Sears? 50 Years on the Road to Ruin
- Washington Post, June 1, 2017: The big missteps that brought an American retail icon to the edge of collapse