@mchatham we will be in position to answer that question for ~80% of the state-licensed producers by the end of March 2018. Every state is different. It will be easy to calculate for fixed states, such as Washington that has a clearly defined Tier structure. It will be more difficult to calculate for variable states, such as Arizona that has no maximum growing capacity for licensed producers.
The individual farm’s growing capacity will have a direct impact on the future wholesale prices. Once we establish a baseline for the average size of producers in each state, we can easily pair that with the average wholesale price in each state and begin to predict market trends. This of course is all going to drastically change based upon federal barriers being lifted. Once it becomes a national market, it is my personal opinion that the producers in variable states (Arizona) will have the competitive advantage to their competitors coming from fixed states (Washington).
Wow, you sure go personal quick - and I guess that’s the point of an AMA
We are in the middle of our raise now, and happy to talk specifics offline but we should be well funded by the end of the year. Of course a big part of that raise is for my team, so that’s growing quickly as well. Shoot me a note at henry@cannabisbigdata.co with your resume if you want to chat on that front …
And with regards to the various sectors, we currently work with licensed and ancillary businesses as well as investors. We’ve got a long list of modules on our dev pipeline, but already touching all the sectors today.
Where does the overall perception of a “lack of need/use for data” stem from? Is this just inexperience in the industry, not enough cross-over from people like yourself having a voice, ego from those tenured in the industry, etc?
“I know I’ve got a lot of valuable data, but how do I put it to work for me?”
Yup, it’s often that simple and vague, and we used our data-driven methodology to work with the business owner to identify the most profitable areas of focus.
And on a very basic level, it didn’t really matter. People were so excited to finally go from their basement to a boardroom, and they thought they would rake in the cash. And, for many people in the very, very beginning, they did!
But as the market matured, competition settled in, and margins started to slim, many delusional business owners felt the pinch on their bottom line and went out of business. We’re seeing a wave of consolidation in CO that is to be expected as investor runways of 12-24 months come to an end without a viable business model out the backend …
Makes sense. So much right now hinges on what happens at the federal level, and the impact that state-level policies have on the de-facto national black market. It makes sense that producers in variable states will have an advantage over fixed states. One question in my mind is: To what extent will different segments of the industry (e.g., cottage/craft vs. mass) be able to coexist? will a national market make it near-impossible for small operators to survive, or do consumers value craft cannabis enough to keep it alive?
As an ancillary, I’m constantly concerned with the growth and development of the industry and it maintaining its ethical roots. As we move closer to data driven realities (which every business should), are you seeing a decline in the ethical reasons people are involved with cannabis? Just more profit driven companies?
We are entirely source agnostic, so we’ll happily plug into any seed-to-sale, POS, or another analytics firm.
People often ask about BDS Analytics, but they’re focused on Neilsen-style market trending whereas we focus on data warehousing and day-to-day operational insights (and, in fact, we’re working on a partnership with them to pair our complimentary offerings). New Frontier, MJ Biz Daily, and Cannabis Benchmarks also focus largely on high-level industry trends.
The closest company is probably Headset, but even they are very different because they focus primarly on POS systems.
Cannabis Big Data plugs into any data source (including spreadsheets and pen & paper!!) and collates internal and public data sets. To that end, we can put all the pieces of the puzzle together in one centralized view + actional insights that immediately drive business decisions. Our comprehensive data perspective and focus on immediately actionable insights sets us apart from most every data company (inside and even outside the cannabis industry).
Great point and my personal hypothesis is that there is plenty of room in the tent for everyone!
On this front, I point to the “craft brew” movement as a focus within our generation on more local, artisanal culinary experiences. As a local foodie myself, I’m happy to pay A LOT more for farm-to-table meals I believe in, and I feel exactly the same way about the dispensaries that I choose to support when I vote with my dollar.
Generally, I would say take nothing for granted and test every assumption. Whatever your core recipe / regiment / SOP, I’d bet a lot of money that we can make it slightly better with a diligent, thoughtful testing strategy.
To that end, measure all of your costs in great detail (nutrients, utilities, payroll, capital expense, etc) so that we can speak to true profitability as part of a comprehensive optimization analysis.
Verrrrry interesting to hear you compare CBD to BDS Analytics. Clarifies a lot about CBD’s role in the industry, and I’ll watch out for that partnership!
Does CBD also work with clients to set up their data collection / storage systems? E.g., would you work with a client to improve their collection process from pen & paper to something more sophisticated, if needed/desired, or do you focus entirely on the analytics?
Look, we’re kidding ourselves if we think that anyone isn’t profit-driven in this industry. Of course there are sharks and unethical players, here like in any other industry, and the more clarity and transparency we have with our employees, our investors, our regulators and our consumers, the more honest and just this industry will become. There is nowhere to hide in the bright light of data, and I welcome that trend with open arms.
To me, it’s critical to use this bright spotlight to shine on the best, most ethical players and celebrate them in the limelight. Let’s turn the cannabis news cycle into a constant churn of industry heroes who have beautiful B Corps that positively impact multiple bottom lines. We have an incredible, once-in-a-lifetime opportunity to make EXEMPLAR businesses in an EXEMPLAR industry that rewrites social norms on what’s possible in a thoughtful corporate culture. I take that honor, and that privilege, very seriously, and I couldn’t agree more that data will be critical in that trajectory.
One of the things I’d love to see more data on is the quality of the consumer experience post-purchase of edibles, extracts, and flower. Obviously sales #'s for certain products are good indicators for whether someone enjoys a product or not, but since strains can often only be available temporarily, it would be great to know (maybe via some sort of qualitative analysis) how much they enjoyed or disliked a certain product. Almost sort of like an email 2 weeks after a customer buys to “rate their purchase” sort of like how Amazon reviews products.
Have you ever done or thought of doing something like this? I feel as though this information could really help a dispensary manager source the products that their clientele like most.
