April 8, 2024 0 Comments

Is 4/20 worth it? Numbers don't lie.

Line of customers outside cannabis dispensary

Every year they come out.  Memes and facts about the origin of 4/20 as a holiday for cannabis.  When I was in college I remember 4/20 was a special day.  Lighting up the electric burner on our neighbor’s rental stove to heat up a couple knives red hot first thing in the morning.  “Wake and Bake” was a 4/20 special.

 

Today I light up my first joint every morning at 4 am on the way out the door to grab my Starbucks and hit the gym.  Throughout the day I consume cannabis both as medicine for my epilepsy and anxiety, and as a leisure activity to break up my day.

 

4/20 has changed much like I have.  Cannabis is maturing as a legal entity and people are using it as regularly as coffee.  In 2021 I can remember massive lines and sales or events at every dispensary I serviced.  “$50 dollar ounces” shouted from A-frame signs on every corner in Portland.   Today I see signs for $25 dollar ounces as an everyday occurrence.  To compete on 4/20 retailers and growers are dropping prices and investing thousands in promotional events and products.



 

March

April

 

2023

$83,096,371.00

$82,275,388.00

-0.99%

2022

$88,988,766.00

$90,404,384.00

1.59%

2021

$109,625,158.00

$110,804,219.00

1.08%

2020

$84,863,480.00

$89,747,592.00

5.76%

2019

$62,119,815.00

$62,369,874.00

0.40%

2018

$53,032,957.00

$52,493,381.00

-1.02%

2017

$40,167,571.00

$41,221,222.00

2.62%



A look at the table above shows that this is not the case at all.  In fact over the course of legal weed in Oregon April has rarely seen growth over 2% and showed a decline of 1% last year.  Even in 2021 when cannabis was booming there was only 1% growth in the month of April!

 

What this means is that the true month of growth each year is March.  Each year March sees growth in double digits and April’s small numbers show a continuation of that growth.  

 

It means that despite all the flair, labor and crazy deals 4/20 itself is not the magic key that my out of touch internet competitors make it out to be.  In fact the real growth happens the month before.

 

All that extra volume we do.  All the purchasings of last year’s grow and yesterday’s oil to get smoking deals for our customers.  All the excess we have to sell off over the next six months to cover our inventory.  All that amounts to sales that are the same as the month before.

 

How do you succeed on 4/20?

 

The key to modern 4/20 success is a mixture of things.  Having strong relationships with growers and retailers respectively can give you a huge leg up.  But the true key to success with this day is how efficiently you sell the high volume you pass through.  We may not sell more dollars on 4/20, but by being efficient we can increase profitability.

 

We’ve thought about how we at P3 can help.  Clearly we are available as needed all the way up to the day of with packaging and supplies in stock that can be delivered where and when you need them.  However, having worked with dispensaries for more than 8 years, my suggestion is pre-packing your 4/20 flower specials.  

 

Pre-packaging can greatly reduce labor costs and save on shrink.  I don’t advocate pre-packaging normally.  I am a huge believer in deli style packaging and believe it is what will make Oregon a destination for Cannabis in the legal market.  However it’s the best way to have 4/20 sales bagged and tagged.

 

You have many options when it comes to pre-packaging just like you do with your deli style day to day.  For the purpose of this article we really only need to focus on pop tops and zip seal bags due to cost.  Both are available on our online store

Pop top and mylar bag

Pop tops

As always, Pop-tops are my preferred method of packaging.  As you read in our packaging blog, not only are they practically air and water tight, they protect your product in transport and in storage.  They block light and reduce degradation.  Beyond that they are 100% recyclable with the P3 recycling system available in more than 450 dispensaries throughout Oregon.

With pop tops you can order ahead and pack your flower into each bottle and store them ready and labeled for immediate sale.  They come in sizes perfect for the usual selling quantities up to 1 ounce and stay closed until you’re ready to pop them open for use.

A 1 oz Pop top costs .53 cents per unit.

Bags

Bags are the most cost effective way to prepackage.  The zipper is air tight offering a reduced oxygen atmosphere promoting longevity.  They take up less space and are the perfect size for each selling quantity up to 1 oz you might need.

We have two bag options available: Mylar and our Polyethylene line.  The PE bags are 100% recyclable and are the most economical and environmentally friendly option on the market.  

A 1 oz PE bag runs .17 cents per unit.  A great way to pre pack those $25.00 ounces of flowers.

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