How Old Fashioned Tactics Can Stomp Out Illegal Pot Shops In NYC

NYC has one of the world’s most sophisticated underground cannabis supply chain networks making it nearly impossible to eradicate their activity. This puts legal entrepreneurs at a competitive disadvantage in market share and price wars because of the higher taxes, fees, and strict industry regulations they must adhere to. 

Some will argue that brands fuel the fire when they look the other way and allow their products on NY streets through illegal distribution channels. Sure, it’s a great way to build brand awareness as they wait for licensed dispensaries to open, but it’s time they put the squeeze on their supply chain now that the city is officially open for business. 

Ways To Squash The Competition Like An Entrepreneur

How does any business in any industry fight its competition? With a top-notch product or service, outstanding customer service, and a multi-pronged marketing strategy to build brand awareness, get noticed and generate sales. 

What is the legal market’s competitive advantage, and how can it be used to compete effectively against underground sales?

Data

The legacy market mainly relies on word of mouth, referrals, and social media to make sales on the down low. They don’t keep records or advertise for fear of the law tracking their activities.

Legit cannabis companies, on the other hand, are legally required to keep records and track data allowing them to effectively use point-fo-sale data to target customers through marketing tactics like email, social media, content, and advertising.

Certified Lab-Tested Products

Warnings about cannabis products contaminated with microbes, heavy metals, pesticides, or Fentanyl are prevalent in the news and feeding the public’s fear of consuming tainted products from unlicensed operators. Legit companies can solve this consumer problem and gain an edge over the competition by promoting their 3rd party lab-tested and vetted products. Shout it from the rooftops!

Tourists

Sixty-six million tourists from around the world visit NYC annually. Many are eager to engage in the NYC cannabis culture and will look for guidance on places to buy cannabis while in town. 

Tour guides, blogs, travel publications, and review sites are all great channels to target this audience with a strong marketing message about the pitfalls of purchasing unregulated products.

Influencers

Enlisting influencers can be a powerful marketing tool because of the trust and persuasion they wield with their audience. There are influencers for all age groups and interests, from the scientific to cultural to lifestyle. Although, older people tend to be more cautious and need less coaching on safety issues than younger ones.

Someone like Berner, CEO of the wildly popular brand, Cookies, is a good example of someone who could convince his followers of the dangers of buying cannabis on the street.

Local Government

NY’s Office of Cannabis Management (OCM) is very active in NYC communities, building trust and making people aware of the business opportunities in the cannabis industry. Co-sponsoring a community event with the OCM to promote licensed operators is a way to market to an established community interested in cannabis.

Lobby the government to require delivery apps like Weedmaps and PotGuide to verify licensed operators with the government database of registered and licensed operators.

Conclusion

Trying to root out the unground cannabis marketplace through legal force is only a game of whack-a-mole. Still, it’s a fight that New York City and licensed businesses can’t lose. Maybe some old-fashioned entrepreneurial tactics will do the trick.