What happens to your revenue long term and how can you help suppress losses during this time?
Covid-19 is currently tearing the economy apart. However, many cannabis retailers are riding a wave of 20%+ sales numbers due to bulk buyers prepping for long periods in isolation or artificial panic over a future supply chain doomsday. However, you should be very skeptical that the increase in short term demand will not cripple your cash flow over the coming quarters.
As things escalate with the virus, individuals will begin to feel the burn on household finances, employers will cut hours, and a general fear of infection through in-store exposure will dominate the mindset.
Click to order online / pickup will become an increasingly leveraged services for dispensaries that can utilize it based on local regulation. Hopefully, regulators will help with temporary laws to help consumers safely obtain products. Both Leafly and Dutchie have seen big increases in online orders across their client base.
It’s also time to minimize future losses by on-boarding users to mailing/ loyalty programs where you can effectively communicate with your customer base about changes to hours, sanitation changes, and promotions. Our managed service teams at https://AlpineIQ.com are rapidly swapping out SMS campaign messages with informational pushes. We are attaching videos, images, and PDF files geared towards instilling brand confidence.
Redpoint Ventures released a simple growth rate calculator related to Covid-19 for software ventures but it is easily manipulated to apply to retail cannabis by changing new bookings and ARR with avg ticket values and monthly revenue: https://docs.google.com/spreadsheets/d/170XeKFnkxsx2wff9STVBjOXZ7k2hierWW6VIKAlCfLw/edit?usp=sharing
We will be posting as the situation continues to escalate and hope to inform you about rapid changes in the landscape via our global cannabis analytics infrastructure.