As competition within the legal marijuana industry gets tougher and other factors, such as adverse weather and high taxes, eat into profits, companies are having to go the extra mile in order to drive sales up and stay afloat. One California company is taking lessons from the boutique wine business to grow its business.
The Bohemian Chemist, a Philo, California craft cannabis brand, has turned to its location in Mendocino County (renowned for wineries) and the Emerald Triangle (famed for its unique marijuana) for inspiration. Having a property that has several wineries as clients, Jim Roberts studied how the craft wine companies were running their businesses and remaining profitable even as they competed against large establishments.
Roberts discovered a recurring pattern in the wineries; three major factors were always at play to ensure the success of craft wine brands. First, the wineries would conduct direct sales to their clients at locations such as tasting rooms. Second, many would sell to clients at restaurants or even engage a distributor to make products available to customers at bottle shops. The third strategy was to start an exclusive club through which members enjoyed exclusive offers and periodic deliveries in boxes of assorted items. Roberts is implementing all these strategies.
The microbusiness that Roberts runs mostly sells his own products, though they also carry a limited number of products from other craft producers in the cannabis space. The company is located in a low-population town, so this makes foot traffic seasonal and limited.
When he first opened his business, the winery tenants and their clients had mixed reactions to the marijuana company. Many initially said they aren’t interested in marijuana, but a day or so later, they would come in asking if Roberts had anything that would help manage a shoulder pain or an ache they had. With time, many confessed they had consumed cannabis while in high school, and they wanted to take it up from where they had stopped.
The Alchemist, the company’s cannabis box for cannabis club members, became available in April, and Roberts is working with marijuana retailers as well as licensed cannabis delivery businesses to reach his customers. Marijuana club membership comes with a recurring membership fee, and Roberts is making his boxes a worthy investment for his customers by including products whose total price often exceeds the recurring fee one has to incur.
Additionally, the club members gain first access to any new products that hit his shelves, and many of those products are in such a small quantity that not everyone interested may get their hands on them. A total of three boxes will be sent out to customers every year, and Roberts is hopeful his model will keep his business profitable for years to come.
As Roberts and others like him look for ways to stand out in the crowded cannabis space, other entities such as IGC Pharma Inc. (NYSE American: IGC) are walking the path of developing standardized medicines from cannabinoids, including THC, so that once those formulations gain approval from the FDA, they will access a nearly limitless market within and outside the country.
NOTE TO INVESTORS: The latest news and updates relating to IGC Pharma Inc. (NYSE American: IGC) are available in the company’s newsroom at https://cnw.fm/IGC
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer
Do you have questions or are you interested in working with CNW420? Ask our Editor
CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CNW420 is part of the InvestorBrandNetwork.
