Tips to Increase Cannabis Product Demand and Beat Falling Prices
The cannabis industry has been booming, but recently there has been a notable decline in prices for cannabis products. This decrease in value is affecting the entire industry and its associated businesses, from cultivators to retailers. The current economic climate is making it difficult for many of these operations to stay afloat as their profits shrink due to falling prices. It’s important that both owners and consumers understand what’s happening with the market so they can make informed decisions about how best to proceed.
To that end, this blog will explore some of the reasons surrounding this decline in price and discuss potential tactics for increasing demand and beating low prices within the industry.
As the cannabis industry continues to grow, there has been a significant decline in prices for cannabis products. This decrease in value is having an adverse effect on businesses and operations within the industry, making it difficult to stay afloat as profits shrink due to falling prices brought about by oversupply and fierce competition among others.
To put things into perspective, historically, a gram of cannabis has been around $10- $20 at a minimum. However, the recent market has seen slashed prices of around $5 per gram.
This decline can be attributed to many factors including oversupply. Oversupply is the result of a large number of cannabis cultivators entering the market, creating more strains and product offerings than ever before. In the last 12 months, the number of communities that legally permit marijuana-related businesses rose to 118 from 87, and the number of licensed establishments saw a sharp increase of around 150, bringing the overall total to 1,238. In just two years, the amount of growers has nearly quadrupled with most being categorized as Class C operations that can cultivate between 2,000 and 10,000 plants.
As these new cultivators have emerged, they have brought with them an influx of cheaper products that have driven down the market price for all cannabis products.
Additionally, as more states legalize cannabis for recreational or medicinal use, larger companies are entering the market and driving down prices with their economies of scale. With large corporations now able to take advantage of bulk production techniques, their costs are lower than those of smaller operations – allowing them to offer lower prices on their products. Not to mention, the proliferation of the black market. This has created an environment where small businesses struggle to compete on price against larger corporations and illegal vendors, leading to a decrease in revenue and profits throughout the industry.
While there is still much stigma surrounding cannabis use in many parts of the country and world, attitudes towards medical and recreational consumers are gradually softening – leading some consumers to opt out of purchasing higher-priced niche items (such as boutique flower or high-potency concentrates) in favor of cheaper alternatives like pre-filled cartridges or edibles. The increasing availability of such cost-effective products has further contributed to declining weed prices.
The declining prices of cannabis products are having a devastating effect on both retailers and cultivators within the industry. As prices continue to fall, businesses that rely heavily on cannabis sales for their livelihoods have been hit hard as profits shrink due to the reasons above. With this decrease in value comes a need for innovative strategies that can help increase demand and beat falling prices – which is what we will explore next.
How to Increase Demand Amid Falling Prices
Get Right Into Your Customer’s Pocket
Innovative platforms like your very own mobile cannabis shopping app have become a powerful tool for engaging shoppers and increasing order totals. These apps allow dispensaries to provide customers with a convenient, hassle-free shopping experience that is accessible from any smartphone. With features such as product recommendations, order tracking, and integrated loyalty programs, custom mobile cannabis app solutions are designed to encourage customers to return more often and spend more money each visit.
One major benefit of custom mobile cannabis app solutions is the ability to personalize the customer's shopping experience. The platform can recommend products based on the customer's past purchases and browsing history, creating an experience that is tailored specifically for them. Additionally, these apps can offer special promotions and discounts that help reward loyal customers and drive more sales.
Finally, retailers can use their dispensary app to collect valuable data about customer preferences and behavior, allowing them to make data-driven decisions when it comes to marketing strategies or product selection.
Another great feature of custom mobile cannabis apps is the ability to facilitate social interactions between customers. Dispensaries can create communities within their app where customers can connect with each other and discuss products while providing user-generated reviews which helps other shoppers make better purchasing decisions. This kind of engagement not only drives additional sales but also encourages brand loyalty among users who feel connected to the dispensary in some way beyond just making transactions.
Finally, custom mobile cannabis app solutions enable dispensaries to deliver an easier checkout process for customers through integrated payment options. This convenience can help increase order totals by making ordering easy and faster.
Overall, custom mobile cannabis apps are a great way for dispensaries to engage shoppers through personalized experiences, social interactions, and convenient payment options – all while helping increase order totals in turn.
By taking advantage of these features and delivering a tailored experience that meets customer needs while rewarding loyalty, dispensaries can attract new shoppers while turning existing ones into repeat customers who are eager to come back again and again due to the added value provided by their customized mobile application solution.
Learn more about Digital Awesome’s Cannabis App here. Talk to an expert by booking a free demo.
Incorporate Conversational AI Into Your Current Digital Commerce Systems
Conversational AI is quickly becoming one of the most important tools for engaging shoppers and improving customer experience in dispensaries. With the help of this technology, retailers can now provide a more natural, conversational shopping experience that mimics human interaction and makes it easier for customers to find the products they need. This not only helps increase order totals but also creates fun and easy shopping experiences that customers will remember and be eager to repeat in the future.
One of the main benefits of conversational AI is its ability to personalize customer interactions by using artificial intelligence algorithms to identify user preferences and tailor product recommendations accordingly. This allows shoppers to receive highly-personalized product recommendations that are tailored specifically for them – ensuring they get exactly what they are looking for while being surprised with new choices they may like even better.
By leveraging AI technologies such as natural language processing (NLP) and machine learning (ML), conversational AI solutions can learn from customer conversations over time and adapt their behavior based on user history, preferences, and feedback. This helps create a more interactive environment where users can easily explore different products without feeling overwhelmed or confused by too many choices or features.
Furthermore, conversational AI solutions such as in-app / web virtual AI assistants or chatbots are designed to keep customers engaged throughout their shopping journeys by offering personalized promotions, discounts, rewards, or special offers depending on their past interactions. These incentives help encourage customers to return more often and spend more money each visit – resulting in higher order values and improved profitability for retailers.
Additionally, these platforms offer real-time customer support which can be incredibly helpful when it comes to making decisions about products or answering questions about pricing or availability. Customers don’t want to wait long periods of time for support inquiries so having an automated response system powered by AI is essential for providing quick resolutions without sacrificing quality support service levels.
Finally, conversational AI solutions can make dispensary shopping funner and easier by creating an interactive atmosphere that feels like a game rather than a chore – encouraging customers to explore different products while playing around with features such as product customization or personalized suggestions based on their past purchases or interests.
By providing an engaging shopping experience that meets customer needs while also standing out from traditional retail offerings, dispensaries can create memorable experiences that keep people coming back again and again thanks to features powered by conversational AI solutions.
Community-Focused Brand Building
Building a sense of community among shoppers is an important tool for improving order totals and repeat business rates. By creating an atmosphere that encourages customers to get involved and become part of the dispensary’s brand, retailers can create emotionally satisfying experiences that keep people coming back again and again.
One way to do this is by leveraging frictionless platforms like weed-friendly social media platforms, podcasts and collaborations to engage customers in meaningful conversation and promote special offers or exclusive deals. This not only helps build relationships with customers but also creates a sense of loyalty and exclusivity that can lead to higher repeat business rates.
Interactive elements such as polls, surveys, or open forums can be used to solicit customer feedback about products, services, or experiences. This allows dispensaries to craft tailored experiences based on individual customer needs while also fostering a sense of inclusion – making shoppers feel heard and appreciated.
Another effective technique for building a community around cannabis retail stores is through loyalty programs or reward schemes. These programs allow customers to collect points when they purchase items from the dispensary which can then be redeemed for discounts or special offers down the road – incentivizing them to return again in the future.
Loyalty programs can also include participatory components where shoppers are encouraged to refer friends & family or participate in challenges & events sponsored by the dispensary. This encourages shoppers to become more engaged with their local retailer – helping drive more traffic & increase demand for cannabis products sold at the store.
Finally, creating unique experiences such as educational events (tastings, workshops) or special activities (auctions, raffles) can help foster a sense of community among shoppers while also making them feel more connected & appreciated by the dispensary itself.
These sorts of initiatives give customers something new & exciting they will want to come back for every time – meaning dispensaries should make sure they’re constantly refreshing their offerings & keeping things fresh if they want to maintain strong engagement levels over time.
By leveraging these strategies and delivering a tailored experience that meets customer needs while rewarding loyalty, dispensaries can attract new shoppers while turning existing ones into repeat customers who are eager to come back again and again due to the added value provided by their customized brand community experience.