Missouri is considered a more competitive market. Missouri is experiencing a number of things that cause consumers to look beyond price when shopping.
By Rebecca Rivas, Missouri Independent
More people are heading to Missouri’s dispensaries to buy cannabis products—and spending more money when they go, according to industry experts who spoke Thursday at the MJ Unpacked cannabis conference in St. Louis.
Missouri has maintained its prices, even though dispensaries from other states offer huge discounts to lure customers.
“Missouri’s market is seen as more competitive than the rest,” stated Kris Walker during a roundtable discussion about retail data analysis. There are certain things that happen in Missouri which are making consumers not only shop on price. If you only shop on price, then it’s a race towards the bottom.”
Samuel Soong, chief revenue officer at Grön cannabis edible brand, called Missouri customers “very savvy.”
“They’re very specific about their needs,” said the man. They expect a great deal of value from their purchases.
Numbers agree. Hoodie’s data shows that the average Missouri dispensary shopper spends about $65 and the average item costs $24.60. It’s higher than the national average, which is $61 per item and $18.41.
The average price of an item in Colorado and New Mexico is $11.
In Missouri, the most common item is traditional marijuana buds or “flower” as it’s called by industry. However, the item that’s seen the most growth in the last year—both in Missouri and nationwide—is pre-rolled joints.
A year ago 48 percent included flowers in every transaction, but today that number is only 43 percent. Walker explained that this is largely because customers are buying more prerolled joints which often contain concentrated cannabis oil. The pre-rolls are for customers who desire a potent, longer lasting high.
Krista Raymond, Chief Strategy Officer at C3 Industries which operates High Profile Cannabis dispensaries said: “It is a convenient format factor.” “It is great for the customers.”
Raymer stated that in other states the increase of pre-rolled joints is causing problems because customers spend less.
She explained that they were buying less brand names per transaction. She said that Missouri pre-rolls are performing a little differently than what other markets have experienced. But it’s something we take very seriously.
Walker stated that Missouri remains a shining star throughout the nation.
John Mueller, CEO and co-founder of Greenlight, says the industry’s ability to create its own regulations is an important part of their success.
Mueller stated that the best defense is to write and pass your own ballot initiatives and rules.
The lobbyists of the industry work every year to defeat any legislation which attempts to “control [our] business,” said he.
Mueller told reporters, “Let’s just do our jobs, don’t get in the way. The veterans will continue to be paid, and everything is fine here.” “I travel around the states in which we are active, because I feel we’ve achieved a high standard.”
He points out the small number of licences.
“Limited licensing is the entire key to any market,” said he. We won’t enter a market without a fixed number.
Walker claimed that Missouri has its own “disciplined operator.”
“If you’ve got a disciplined operator who knows they’re running a business for profit and growth and long-term brand building, you make different decisions than, ‘Oh my God, the guy across the street just dropped his price by 30 percent. “I should too,” he replied. It’s a very unwise choice with serious implications.
The original publication of this story is Missouri Independent.