Prepping for the rush means doubling or tripling staff levels at Jars Cannabis, a dispensary chain with 35 locations across Michigan, Colorado and Arizona, according to Donovan Adam, sales director.
“We expect a real ramp-up of customers on both Green Wednesday and Black Friday, when we’re having a new giveaway with $200 worth of goodies for the first 50 people in line,” Adam told Adweek.
Race to the bottom?
Mainstream retailers run doorbusters and deep discounts as bait to get consumers to spend on other items or to make multiple trips at this time of year. Dispensaries have adopted the model, but it doesn’t translate directly to the weed world, per cannatech company Treez.
Instead, the practice can commoditize the product, “eroding brand value and encouraging consumers to simply show the lowest price. Customers stockpile products are their lowest cost and don’t necessarily continue to buy those brands or products again,” according to Elling Hofland, director of product management at Treez, who called the now-traditional severe discounts “a seemingly unending and unwinnable race to the bottom.”
Treez advises that brick-and-mortar stores exercise restraint, especially in discounting bestselling products.
A better approach is to protect premium brands while concurrently launching bang-for-the-buck value labels, as Ascend did with Simply-Herb and Verano with Savvy, according to Paxhia.
“That signals a maturing in strategy, with products at different price points, different quality levels, aiming at different consumers,” Paxhia said. “I hope to see more of that this season and going forward, rather than more BOGO deals.”
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