Everything seems to be stacked against Employers. Additional similarities between store-front and delivery companies include the very expensive and large amounts of inventory required to maintain a healthy menu of choices for the consumer, the high cost of labor including incentive compensations for the bud-tender staff directly interacting with the customers, the extremely expensive and significant amount of advertising to gain enough market share to have substantial revenues and the extremely expensive cost of products.
Cannabis delivery companies have so many additional expenses than a store-front location which include:
✓Ownership and maintenance of a fleet of vehicles
✓Extremely expensive cannabis automobile insurance and gas for the vehicles
✓A team of dispatchers who are properly trained to not only map out each drivers schedule but constantly selladditional items to customers
✓Cashless ATMs solutions to customers do not have to pay in cash
✓Warehouse management personnel to coordinate/hire/train/offboard drivers
✓Extensive amount of marketing dollars expended on Weedmaps to ensure proper placement ofour Company as compared to our competition
✓Extensive additional local ordinances and local jurisdiction taxes
These are just a few items that immediately come to mind. With an extremely competitive cannabis delivery landscape, aggressive additional marketing techniques must be used to accelerategrowth and gain market share.
Supply Chain Issues
Similar to our other clients, Company ABC’s customers expect, anticipate, desire and demand consistent strains, flavors and products in stock at all times. This is nearly impossible unless you have complete control of your supply chain. From week to week, day by day, inventory availability at all of the distributors theywork with varies tremendously. This is one of the biggest challenges.They end up having to purchase more than what is initially needed at times just to ensure that they will have the inventory that their customers demand. While many of their customers like variety, a large piece of their clientele like the products they like and if the Company is out of stock of a product, then the customer will tend to find the product at a different dispensary.