Achieving growth and building a following in any new industry are often tight, especially when its product wants to be illegal. There is no better example of this than marijuana. Despite being legalized in many nations for medicinal use, including the cultivation of blueberry jack herer autoflower seeds for home use, and even recreational in some, it is still illegal at the federal level.
From obtaining the trading permit to crushing through the highly competitive marijuana market, business owners need to affect several hurdles in cannabis marketing. These hindrances are challenging weed dealers within the US who aim to determine a clientele within the industry.
Licensing And Permit Stumbling Block
For cannabis marketing applicants, an area license must first be acquired to secure a state permit. However, cannabis business licenses are granted only to a limited number of applicants. This poses a haul in some cities, particularly in areas where local corruption is an issue. Fraudulent officials either hint for a bribe from license applicants or award the license to the very best bidders.
While some applicants opted to form an under-the-table payment and make the licensing process a touch smoother for them, others chose to fight back. For a few hopeful applicants, getting a license from another municipality seems to be the best choice. Licensing is additionally a slow and dear process. Businesses are not yet allowed to form profits. Simultaneously, the appliance process is ongoing – and therefore, the wait is often quite long! Moreover, if the license applicant is unlucky, he finishes up not being granted the license.
The Unstable Cannabis Market
In the past, there has been limited pot seeds for sale within the market. Since the availability is restricted, they will afford to charge high prices for the cannabis. Nevertheless, thanks to the uptick within the cannabis merchants following the state after state legalization of , there has been a drop by the worth.
In Oregon, as an example, the worth decreased by 50%. Overproduction appeared to be a drag lately. Cannabis marketing will get tougher within the following years, consistent with a report made by Forbes. Although the cannabis industry is projected to high up, the weed market is going to be volatile. This forecast was made in consideration of the subsequent issues that end in cannabis price compression:
- Weed overstock
- The proliferation of marijuana shops
- The legal processing of marijuana is way from complete
- The fact that weeds are not any longer considered a novelty.
High Competition Among Cannabis Business Owners
With the “weed marketing” rate projected to rise to quite USD 13.8 billion within the coming years, more entrepreneurs are estimated to interact during this business. Especially lately, when legalization in other states is being considered, the marijuana market size will grow even more prominent.
Cannabis traders who do not want to hide within the black market are now growing in numbers, joining the growing population of cannabis business owners within the industry. This has led to tight competition within the local and international cannabis market.
As previously mentioned, licenses and state permits awarded in chosen dispensaries are very limited. Thus, it adds to the already serious competition among marijuana business owners.
Promotion For The Pot Business
Cannabis marketing is often tricky since legal restrictions surround it. Even Super Bowl rejected a billboard endorsing the legalization of medical marijuana. With mainstream advertising being tricky for the cannabis business, can they advertise weed in a legal platform.
Many marijuana business owners are shifting to digital marketing solutions. Social media platforms are popular choices, making the foremost of the organic reach advantage that they provide. The utilization of brand name ambassadors or influencers, blog posts with pot images contents, and online weed shows and podcasts are also popular choices.
New Security Guidelines For Cannabis Business
Cannabis dispensaries are expected to put in high-resolution cameras in their establishment. An access system is inspired as a part of the safety plan. This is often to make sure that only authorized persons can have access inside the dispensary. Cannabis business owners also are advised to try to do a background check of all their employees. This may prevent theft and giving the person with the incorrect intentions access to the products. Intrusion alarm systems and physical security also are required by law altogether marijuana dispensing facilities.