Did you know that Washington State’s Recreational Cannabis Industry sells approximately $10M worth of accessories and paraphernalia each month?
Our company became as one of the fastest growing distributors of paraphernalia and accessories in the Pacific Northwest since 2014, selling established brands like Grav Labs, Chameleon Glass, Kandy Pens, etc.
We quickly found out that many of these brands were simply going to China, adding their logo and design and then marking up their products 3-4 times to make huge profits.
Today, we help over 100 state-licensed retailers create, sell and market their own brand of cannabis-related paraphernalia (i.e., Bongs, Vape Pens, Herb Grinders, Pipes) by either applying their store logo or helping them create their own designs and dramatically reducing their costs and increasing their profit margins.
The reason why we mention this (besides being a shameless plug) is because the Liquor Control Board (LCB) that governs the cannabis program in Washington has limited the marketing options for licensed retailers, limiting their signage options and marketing efforts.
State-Licensed Retail Stores can NOT sell or even give away products with their store logo on it. This means no T-Shirts or Hats can be sold or given away to customers that have the store logo on it. No coffee mugs, pens, etc.
However, the LCB does allow retail stores to sell paraphernalia and accessories, so instead of selling apparel, stores can only sell a pipe, bong, vape pen, herb grinder, etc.
This has proven to be a very successful strategy for many of our clients who continue to be market leaders in their area because we help clients not only save money by sourcing quality paraphernalia to sell in their shops, but also helps promote and create hyper-localized marketing opportunities. Every time their customer smokes a pipe, shares an herb grinder, hits a vape pen, they are reminded of where they got their cannabis.
Another strategy used by retailers, has been to open a separate glass and goods shop next to their cannabis shops so that the LCB cannot restrict how a shop owner markets or sells in their shops outside of Cannabis.
I’d be curious to know what (if any) marketing laws or restrictions are in place in other states and what strategies are being implemented to increase sales and profitability.