As Easter Sunday approaches, the cannabis industry is pinning its hopes on a 420 revival to boost sales. For the second consecutive year, marijuana revenue has declined, with experts attributing the drop to increased competition, cheaper products, and restrictive marketing regulations.
To capitalize on the convergence of 420 and Easter, dispensaries are offering Easter-themed giveaways, grab bags, and special deals to attract new customers. Raul Molina, owner of Mint Cannabis, believes that respecting the Easter holiday while still celebrating 420 is key to success.
Industry experts point to the decline in average transaction value as a major factor in the revenue slump. Four years ago, customers spent around $68 per basket, whereas today they spend around $50-$51. The increased number of dispensaries and smoke shops selling illegal marijuana, combined with state taxes hovering around 40%, has further squeezed profit margins for small businesses.
The Marijuana Industry Trade Association’s Dimitri Downing notes that the industry’s struggles are partly due to the restrictions on advertising and marketing. “Four years ago it was closer to $68 dollars a basket and right now we’re probably closer to $50, $48, $51,” Molina said.
To combat this, dispensaries are turning to social media, billboards, and fliers to promote their Easter-themed deals and encourage customers to get in the holiday spirit. While being mindful of not offending customers, businesses are looking to capitalize on the unique opportunity to attract new customers.
As the cannabis industry navigates this challenging period, it remains to be seen whether the 420 revival will be enough to boost sales and revitalize the market.
