Colorado Marijuana Display

How Marijuana Businesses can Adapt to Colorado’s Declining Sales

It’s not just a whisper in the background or a prediction of doom from industry naysayers: Colorado Marijuana is declining and will continue to do so. Colorado Marijuana Business owners must adapt or become part of Colorado’s Marijuana history.

Are the Golden Days of Colorado Marijuana Gone for Good?

Yes. Sorry. In reality, this would always happen, and it should not surprise anyone. Colorado was the first state to make Medical and Recreational Marijuana work in a way that changed minds and laid the groundwork for widespread legalization of Marijuana across the United States and beyond.

As various states begin to implement their own legalization systems and federal support for decriminalization gains momentum, the novelty of Colorado Marijuana is wearing off. The result is less “Weed Tourism” and fewer sales from residents of nearby states. New Mexico and Arizona both have begun their own successful Recreational Marijuana programs, and it’s hard to see why anyone from more southern or southeastern states would bother going all the way to Colorado anymore.

Colorado Marijuana is Facing Internal Troubles Too

Competition from other states is only the beginning of Colorado’s Marijuana problems. The same rush that drew so much tourism and tax dollars also caught the attention of entrepreneurs and large corporations. A decade later, the industry faces oversupply issues and fierce consumer competition, leading to a “race to the bottom” for product values.

Westword spoke with management at High Level Health, noting: “We’ve never had to work so hard for sales in the past. We’ve always been running weed to the store all day on 4/20 for the last ten years because it was never enough. This year we felt the impact, though,”. April 20th has long stood as the marijuana consumers’ Thanksgiving, and Black Friday rolled into one day. While the day still drove elevated sales across the state, it is a herald of changing trends.

It’s Time for a Colorado Marijuana Marketing Wake Up Call

I have long argued that Colorado Marijuana Businesses must stop shying away from advertising. Conservative fear of violations is valid, but when profits fall and competition is fierce, you adapt or quit. Make no mistake: I expect a significant reduction in the number of operating Colorado Marijuana Businesses across all License Types in the coming years.

At some point, and likely sooner than we expect, licensees must begin to employ large-scale strategies for finding new customers or patients. Social Media Marketing, Pay-Per-Click Advertising, and even perhaps Search Engine Marketing will all become necessary pieces of Colorado Marijuana Business Operation. The time has passed when we can put out a sign and watch the consumers walk in the door.

De-mystifying Colorado Marijuana Advertising Laws and Rules

Despite all the concerns, Colorado Marijuana Enforcement Division Rules regarding advertising (found on page 154) are only six pages of the five-hundred-and-one-page rulebook. Many rules are common sense applications and basic advertising tenets like “No Deceptive, False, or Misleading Statements.” The most important impression of the rules is that targeting those under age 21 or advertising to them as a significant portion of the whole audience is strictly prohibited. The same rules apply to event sponsorship participation by licensees.

Beyond these basic requirements, licensees must include a statement regarding the concerns of concentrate overconsumption and are also prohibited from making any claims of safety or any certifiable medical benefits. Any outdoor advertising used by licensees must follow all other state laws regarding outdoor signage, and the advert must not be within 500 feet of a church, school, or public playground. Finally, using unsolicited pop-up advertising via the Internet is strictly prohibited.

Staking your claim on the Colorado Marijuana Market

There are several ways that Licensees can begin to improve their marketing presence immediately. Ensuring a wide availability of high-quality products from various sources and every type will help reduce customer fatigue and keep people coming back. Another way of building brand loyalty is to include retention and engagement techniques like email lists, giveaways, social media engagement, and loyalty reward programs.

While you may be prohibited from claiming your products are “safe” simply because of compliance with state regulatory and testing laws, nothing prohibits you from being public about your track record of success. A long history of successful audits and passing test results can go a long way toward building confidence in your product. A valid Responsible Vendor Certificate should be touted wherever relevant, as well as any industry awards.

Be an Active Member of Your Community

One surefire technique often overlooked is a robust public service presence. Donations and partnerships with local support agencies like food banks and emergency shelters, volunteer participation in community events, and taking your stand on social issues important to you or your employees can make significant strides in making your Marijuana Business a valued part of the local business landscape. Be mindful of the age requirements we mentioned before, but be bold in creating a marketing opportunity out of your engagement.

Stay Current and Involved with Changes in Rules and Laws

As a regulated marijuana licensee, being proactive and engaged in the law and rulemaking process is crucial. Active participation not only ensures that your voice and viewpoint are heard, but it also demonstrates to the public and your customers or patients that you are knowledgeable and committed to the responsible growth of the legal cannabis industry in Colorado.

Participating actively in the legal process and subsequent rulemaking can help ensure you aren’t obligated to unreasonable requirements. At a minimum, it will assure you know what changes are coming and the legislative and regulatory intent behind them. The legislative process allows you to establish and maintain relationships with key industry stakeholders, including regulators, policymakers, and other businesses. These connections can be invaluable in advocating for your business’s interests, collaborating on initiatives, and staying informed about new developments in the sector.

Working with a Trusted Colorado Regulated Marijuana Consultant

In conclusion, navigating the ever-evolving landscape of Colorado’s regulated marijuana industry can be challenging, but your business can adapt and thrive with the proper guidance and support. By partnering with an experienced marijuana consultant, you can stay informed about the latest industry developments, effectively engage in the law and rulemaking process, and implement strategies to optimize your operations and marketing efforts. A consultant can provide valuable insights and expertise to help you weather these tough times and emerge even more robust. If you’re ready to take your business to the next level, don’t hesitate to contact us for expert assistance tailored to your specific needs.

more insights