The obstacle of Coronavirus
The sudden arrival of COVID-19 has left many businesses shuttered or near-empty. Many companies have had to drastically change their operations literally overnight to save the ship from going under. Businesses in the cannabis industry are faring no different, but there’s a chance that during these trying times, cannabis companies can experience a potential boom. Here’s what you need to know about operating your business in a landscape remolded by coronavirus.
1. Dispensaries are considered an essential business.
It’s highly likely you knew this already, but it’s important to know why so you can learn how to take advantage of this time. Almost all 34 states with legal recreational or medical marijuana companies have classified businesses within the cannabis market as essential services. So, while other retail stores have shuttered, marijuana businesses can stay open. This means the general population is beginning to look at dispensaries in a way akin to pharmacies, as places of healing.
Amanda Jones, the co-founder of Kikoko, a Bay Area-based manufacturer of cannabis-enhanced teas, honey, and mints, knows that for many people, “It’s not just a recreational activity. It is something that helps keep people calm. It helps with their anxiety; it helps with sleep; it helps with pain—all of which people need at a time like this.
Consider helping your clients’ peace of mind by promoting CBD products that induce a sense of calm, or offering discounts on strains that, for example, help specifically with anxiety, pain, or insomnia. At High Rize, we can help you update your website to include discounts or promotions for whatever products you choose.
2. Sales are booming now, but be prepared for an oncoming drop.
Several states and businesses have reported record-breaking sales in the days before state-wide shutdowns as anxious stoners stocked up on their supply. However, this means you won’t have as much traffic during the time your customers practice social distancing. An inevitable slump in sales in coming, but there are ways to combat it.
More than ever, you’ll want to ensure your online presence is sparkling, accurate, and appears at the top of search pages as consumers scan to see who offers pickup and delivery. Consult with High Rize to see the steps you can take to shoot your online presence to the top. Furthermore, consider hiring more employees who can answer phone calls, handle inventory shipments, work retail, and deliver products; you’ll need to show customers you are capable of delivering swiftly, which will keep them ordering from you over and over again.
For example, Harborside — a Bay Area cannabis company running three dispensaries — found itself suddenly understaffed as delivery requests increased by 45 percent and phone calls exploded from around 100 to 8,000 per day. They hired in-store customers as well as delivery drivers, turning to an Amazon-like mode of operation, taking orders one day and delivering the next. There’s no shortage of hiring potential either, as millions of Americans are laid off from jobs due to COVID-19 and are filing for unemployment.
3. Dispensaries are regulated on a state level.
If you decide to make some operational changes, be aware that the regulations do not apply to every state. For example, Illinois is only able to serve customers with medicinal cards, while delivery is mandatory in Nevada. Colorado has also made curbside pickup mandatory, and your state may be on that list soon too.
Consult your county public health guidance, as well as state, federal and World Health Organization guidance to ensure sanitary operations. You’ll need to obtain approval by the correct departments and agencies to continue sales in a manner that is safe, whether that means pre-order, delivery, curbside pickup, or other methods. In fact, Leafly keeps a twice-daily updated page of dispensary openings and closings by state, as well as a guide to curbside pickup and a service called Leafly Pickup. Most consumers will be using the site as their guide during the coronavirus era, so you’ll want to ensure your company’s services are accurately listed on Leafly with the help of High Rize.
These state guidelines also mean the marijuana market is exempt from Congress’ $2 trillion stimulus package for struggling businesses because cannabis still has not achieved legal status federally. However, this doesn’t mean there may not be aid coming in the future as the cannabis market will continue to prove its weight in economic stimulation. A spokesperson for Sen. Jeff Merkley (D-Ore.) said he wants to include provisions for marijuana businesses in a future coronavirus aid package.
4. Consider alternative and safe methods to classic operations.
Your crowded stores full of long lines are no more. Instead, if you have an open-store policy, ensure to keep customers 6 feet apart with marked floors, and offer to take temperatures at the door. Allow customers to simply hold up, rather than hand over their ID to security or delivery drivers. To limit in-store traffic, encourage customers to order online for delivery or curbside pickup. If you don’t have menus or ordering available on your website, we can update your site quickly for you here at High Rize to make your site work for your business. In the meantime, ensure your hours of operation and phone number are listed accurately online so customers have the option to call in orders.
5. Inform your customers that cannabis can still be consumed responsibly.
Both on and offline, it is wise to update your business with safety notices that inform your customers, not induce panic. For example, ensure your customers exactly how your cleaning operations are stricter and more frequent, or consider adopting policies that grant an hour where your shop is open only for seniors or the immunocompromised. Due to the damage COVID-19 can cause to lungs, many are concerned that smoking may not be a wise move. Crowds at dispensaries and the puff-and-pass traditions of smoking also raise skepticism. As a business, take responsibility in keeping the population safe by encouraging consumers to keep their pipes and bongs clean, avoid sharing, and practicing online shopping. Consider promoting edibles, oils, or other non-inhaling modalities to keep the potential of lung damage down among your clients. Whether you need a blog post announcing safety notices, or an updated home page showing all the discounts on relevant products, consider calling High Rize today to help you get the work done in a swift and professional manner.
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