It’s no secret that the cannabis industry has been struggling for a while now. Some of the key challenges include the lack of federal regulation and access to banking, the stigma that remains from the failed war on drugs, high taxes, sinking prices, illicit sales and record levels of inflation, which are affecting consumers’ wallets.
For some marijuana operators, the main strategy to deal with these obstacles is to lower their prices. The question is – what else can dispensaries offer besides inexpensive products to stay competitive?
Several industry experts answered that question and shared their strategies for surviving the price compression at the recent Benzinga Cannabis Capital Conference in Chicago.
“For us, we built a lifestyle brand,” Justin Elias, CEO of Puff Cannabis Company, a Michigan-based vertically integrated business, told moderator, business journalist and editor at large of mg Magazine, Ross Gardiner. Elias explained that even though they do service those 20-30 percent of customers who are looking for the best deal, they created a brand that has so many customers who come “because of the service and everything else they get.”
Lilach Mazor Power, founder and CEO of Mazor Collective, the only women-majority-owned Arizona marijuana company, agreed, saying “beyond pricing is something that works.” Mazor Power added that it is important that a salesperson really