Retailers know promotions can drive sales. So consumers in slower winter months watch for industry staples like in-store swag giveaways — a free hat or hoodie, for instance — buy one/get one deals, or boosted customer loyalty program rewards.
In Michigan these days, it may mean getting an eighth-ounce of marijuana for a penny.
More than three years after the legal market opened to them, the state’s 600-plus recreational cannabis dispensaries and suppliers — faced with steep competition and price drops of 75 percent — are looking for a marketing edge beyond ubiquitous billboards.
And they’re increasingly turning to age-old retail strategies to get and hold onto market share.
The move to go beyond price to differentiate is crucial in a rapidly changing cannabis landscape that Michigan industry insiders expect this year will lead to more business consolidations, potential closings and jostling for revenue.
“You’re seeing a lot more retail marketing strategies being deployed,” Karl Riedel, chief marketing officer for 305 Brands, a wholesaler, told Bridge Michigan. “(There’s) your traditional things like buy one, get one free and stuff like that, but I think you’re going to see a lot more.”
Examples are starting to accumulate around the state:
Skymint ran a “free weed for a year” raffle in January.
Lume Cannabis is offering a free night of skiing at Mount Bohemia in the Keweenaw Peninsula for customers who spend $50.
And until April 15, customers at Golden Greens in Lawrence, about 12 minutes west of Paw Paw, can buy 1/8th of an ounce of marijuana for one cent with any purchase as a result of a deal between the dispensary and nearby 305 Brandsfarm, which sells in 100 outlets in the state.
Munchie Monday, Doobie Tuesday and early bird specials now beg for attention amid specialty bundle pricing, even in stores that don’t try to appeal to bargain shoppers.
To read more, click on Bridge Magazine