Monday, May 6th 2024
Aligning retail pricing with production costs in the cannabis industry is crucial for maintaining profitability while ensuring competitiveness in the market. This involves a series of steps, from understanding your production costs to strategically pricing your products.
In this segment of CANNAtalk, we brought the discussion to the StratCann “Growing Relationships” event hosted in Calgary, Alberta on May 6th. We had an expert panel bring their wealth of knowledge to the table, and discuss the decision-making process, the communication needed to succeed, and how to monitor execution.
WATCH THE VIDEO
PANELISTS
- Bradie Sparrow – Marketing Manager at Pistol and Paris
- Jen Meyers – Co-Founder and CEO at Zelca and Manna
- Anil Jain – President and CEO of Emprise Canada Inc.
- Moderator: Nico Hache of Hache Kloet Consulting Inc.
The article continues after the photo gallery.
EVENT PHOTO GALLERY:
KEY TAKEAWAYS
Encountering unforeseen costs and challenges is inevitable in any business venture.
In the cannabis industry, these obstacles can range from third-party processing markups to navigating complex tax structures.
Labor costs, human errors, and regulatory burdens further compound these challenges. The need for ongoing research and development, coupled with the expense of marketing and sales also adds to the financial strain.
To address these challenges, businesses must:
- Prioritize efficiency and invest in time-saving equipment to minimize errors.
- Encourage collaboration among team members, including production staff, is crucial for streamlining processes and reducing costs.
- Seek constant feedback to ensure continual improvement essential for refining strategies and staying agile in the face of market shifts.
When introducing new products, businesses should:
- Test the market cautiously and be prepared to adapt quickly to changing demand.
- Build strong relationships with retailers, as customer loyalty is fleeting in a competitive market.
- Invest time in product knowledge sessions and solicit feedback - businesses can enhance sell-through rates and ensure long-term success by doing so.
- Ensure effective communication and collaboration with retailers to enable businesses to make informed decisions and respond swiftly to market dynamics.
Consideration for Change:
During a recent legislative regulatory review, a proposal emerged suggesting the allowance of QR codes on products to “convey factual information to consumers, within the constraints of what is currently permitted on labels or in cannabis promotions.
Perhaps producers could collaborate with regulators to expand this approach, enabling the inclusion of more detailed company information. This could offer a unique opportunity for differentiation in the market.
For more about the StratCann event in Calgary, check out their synopsis here.
We look forward to continuing the CANNAtalk discussion and seeing everyone again in Kelowna, BC on June 10th!
