3 ways for marijuana cultivation supply retailers to get through the current industry downturn
retailers are already shut/shutting down, not all will make it but good ridden to the owner/operators whose sole competitive strategy is price
1. big fish feeds small fish
a retailer with $300k/month purchase orders will have significant discount tier advantages over the competition.
a larger retailer can essentially wholesale to small retailers, this is viable because there is a minimum order amount per vendor. this way even if the larger store is not serving the clients of the small retailers, it still receives the part of the revenue.
2. use inventory as investments
retailers with 10000sqft. warehouse space can house $8-$15million in inventory. propose to use the inventory to marijuana producers as investment capital.
3. use this down time to restructure the business
i can't speak about other retail industries but our company thrived through a decade with aggressive changes in downturn markets.
but the brutal truth for the smaller retailers that never reinvested in the business will likely be rolling down the gates for good.