Now that cannabis is legal in almost every state in America either for recreational or medicinal purposes, businesses and investors are taking a much closer look at this rapidly rising industry. Recent statistics share some eye-opening figures and numbers in the marijuana marketplace including:
- California and Colorado already have sales topping more than a billion dollars annually (at $2.75 and $1.56 respectively)
- Revenue across the United States are expected to reach over $100 billion by 2030
- In Australia, sales are set to hit the $1.2 billion dollar mark by 2027
- From 2019 to 2021, the expected annual growth is at 21% which means in just three years, the marijuana industry will reach $23 billion yearly
As we’ve seen, the demand is there as this marketplace is destined to thrive. So how does the subscription industry fit into this equation? Why is a regular delivery method more successful instead of using more traditional purchasing methods? Who are the best providers when it comes to this service and why are they doing so well? Are there ways to streamline this business model with automated software leading to greater success?
Cannabis Providers Operating Successful Subscription Services
Those looking to either enter into this growing marketplace or are hoping to increase profits inside an existing business are always wise to check out the competition. According to a recent post from at least one expert in the cannabis industry, providers using subscription services are successful for a variety of different reasons. It depends on what they have to offer, options available to consumers, etc. For example:
The Nugg Club Box: While their delivery services only encompass the Southern California area they’re looking at expanding in the future. They received high marks for price and selection with a variety of different products from edibles to vapes and more. Considered the king of these cannabis clubs, they deliver top-shelf products and discounted prices to their customers.
Flowsent: Also based in California, Flowsent not only delivers its products to residents of the Golden State but also invites members to exclusive events like Meet the Grower. This company is able to strike a balance between customer personalization and new product discovery.
The Lucky Box Club: Members of this service consider themselves fortunate to receive nothing but the best in custom boxes filled with premium and hand-crafted cannabis products. The company promises the highest in “quality history, and values” of the brands they sell and deliver to their customers.
At this point, it’s important to remember, there’s a caveat in place that often requires these providers have their potential customers verify certain conditions. It may include verifying consumers are of legal age (at 21 years of age or older) or show proof of residency in order to qualify for purchases. In states where only medical marijuana is legal, there may be physician-based paperwork required prior to sale.
A Tip About Subscription Services
As you can see, with a bit of paperwork in place, some originality, and creativity, cannabis or any other business or industry is able to excel within a subscription model. Conversely, providers don’t need to have an ever-changing box delivered to their signature consumers in order to take advantage of subscription services. Simply offering the option for consumers to automatically repurchase a product at regular intervals could establish a stable, recurring revenue and long-term customer. This could mean anything from regular invites to podcasts and email updates to cat food or cannabis products.
Automated Solutions for the Greatest Success
At MaxQ Technologies we offer everything for businesses to streamline subscription services that is available to all industries. While this particular subject is worthy of an entire article all by itself, but instead, we’d like to invite you to contact us today to discuss your individual and unique needs. Your success is our success, and we’re looking forward to hearing from you.