Recreational drugs like marijuana have a huge market. According to Statista, the market for recreational drugs like marijuana and cannabis will likely grow to $ 18.4 billion by the end of 2022 and $ 25.1 billion by 2025. So if you are looking for a good business opportunity, you can start a marijuana delivery service to deliver the goods right at your customers’ doors.
Many companies offer marijuana delivery services. However, if you want to succeed, you have to do things differently. To know more, you should read this blog carefully.
Tips for starting a marijuana delivery service
Learn various tips for a successful marijuana delivery service.
Find your niche
You should find your niche market. If you try to broaden your business, you will find it harder to target your customers effectively. The niche you choose should not be overly saturated. For example, if you want to focus on cannabis vaporizers, you should deliver those hardy brands that can be used outdoors. It would be best to always look for a market that is not overly exploited and offers you room for expansion.
Create a brand identity
To succeed in your marijuana delivery service, you must have a strong brand identity. A strong brand would help you to stand apart in a crowd. Your target audience would immediately find out what your company provides through your unique value proposition. You should carefully research your target audience to find their gender, age, profession, and preferences. Based on these data, try to innovate by offering them something better than what your competitors offer.
Know the law
Even in those states where the delivery of marijuana is legal, this business is regulated by stringent rules and regulations. Therefore, you must carefully follow the laws of the land, or you may incur heavy fines or even suspension of your marijuana delivery business license.
Create a delivery strategy
You must develop a delivery strategy that should be simple yet seamlessly source, store and deliver a large amount of marijuana without any problem. Next, carefully identify your target audience, whether millennials, Gen Z, or homebound seniors.
It would be best to consider all the costs associated with the delivery service, including the vehicle, the hardware, the gas, the employees’ et cetera. Then, match it against the potential revenue to find the strategy to maximize your profit.
How far should be your delivery radius?
Once you have selected the location for your marijuana delivery service, the next step is to fix the delivery boundary. While doing this, you may be tempted to go far to get more customers. However, you have to weigh it against the operational costs like additional delivery staff, fuel expense, insurance, etc. It also could be the case where the local rules and regulations would limit your delivery radius.
Source the cannabis
For the success of your marijuana delivery business, you must have a reliable source from where you get the product so that you can sell ahead. You can talk to the marijuana manufacturers or growers directly so that you can strike a deal and get the product at a wholesale discount. Make sure that the manufacturer is legally authorized to grow marijuana. It would be best if you did not procure it from the black market, which will make you go against the law.
You must comply with all the rules related to the delivery of marijuana. Some of the essential rules (it may change from state to state) are as follows:
- The delivery vehicles should be unmarked and enclosed.
- Marijuana should be stored inside security boxes attached to the vehicle.
- GPS units tracking for each delivery route.
- No unauthorized stops by the delivery van.
- The bank should have a temperature-controlled environment.
Advertise your service
Your target audience must know about your delivery service to place their order. However, you must be aware that several states have additional laws that restrict the number of ways you can advertise marijuana delivery services. Some of the effective ways to promote your business include the following:
- Contact local dispensaries that sell marijuana.
- Create a business website.
- The local paper and digital advertisement.
While it is true that selling marijuana has become legal, you will find that many card companies and most of the operative banks do not encourage transactions related to buying and selling marijuana. Therefore, you can opt for cash payment or the e-wallet apps in case the traditional banking and cash transfer options are not available in that area.
While this industry is nascent, it is growing rapidly, especially if you factor in medical marijuana. You have to adhere to different state laws regarding storing the products at your warehouse, how you transport them on the road, and your advertisement. You must hire the services of a cannabis compliance specialist or a lawyer who would guide you on the best way to launch such a service in your area.