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Dispensaries Can’t Have Sales in NY. What Can You Do Instead?

The cannabis industry in New York is subject to some strict regulations, especially when it comes to running promotions and offering discounts. While businesses in other industries use sales and similar promotions to capitalize on the influx of holiday shoppers, cannabis retailers are unable to do the same. So, what can you do during the holiday season when plenty of shoppers are likely looking for gifts for cannabis-consuming friends and family? It’ll take some creative thinking, but there are solutions.

What are the regulations regarding sales and promotions?

In New York state, licensed cannabis businesses are prohibited from advertising sales or promotions based on the regulations set forth by the New York Office of Cannabis Management (OCM). This includes giveaways, discounts, and customer loyalty programs.

The precise language of guidance issued by the OCM is as follows:

Licensees cannot give away, including through donation, any cannabis products. Licensees cannot advertise giveaways, discounts, price reductions, points-based reward systems, or customer loyalty programs including, but not limited to, by using the words “sale”, “free”, “price drop”, or “discount” on a menu, in any communications to customers, or elsewhere. This does not prohibit licensees from changing the price of cannabis products or otherwise “discounting” products.

Of course, this doesn’t mean retailers are unable to change the pricing of their products — you just can’t advertise the discount, which sort of defeats the purpose from a marketing perspective. However, reducing prices and other clever sales tactics can still offer a benefit to your customers and your sales numbers.

5 promotions to try when you can’t have a sale

Although you’re not able to advertise holiday sales to your audience — or any other sales for that matter — there are still some reasons you may want to reduce pricing as holiday shopping shifts into high gear. Additionally, there are some ways you can use to remain compliant with New York state law while availing your customers to wallet-friendly options. These five tips can help you drive business and ensure your customers have truly happy holidays at your dispensary.

1.    Feature your best-selling and most profitable products

You don’t have to necessarily advertise price drops or discounts to bring in customers. Feature your best-selling products or those with the highest profit margin in your marketing materials as the holiday season approaches. These products may be enough to bring customers in and drive more sales of your most lucrative products without running afoul of New York state law.

2.    Bundle products together based on a theme

The holiday season could be a great time to pair some items together based on a theme, such as items that offer a similar effect or those that complement each other nicely. For example, you could offer a “DIY R&R” bundle that contains a stress-busting strain, topical products that ease aches and pains, and edibles that help with relaxation.

Pricing these bundles advantageously compared to purchasing each product inside individually could incentivize customers to buy multiple products instead of just one or two. They also serve to showcase the wide variety of cannabis products your dispensary has on hand. Who knows? Some of your customers may discover their new favorite product this way and come back for more in the future. Consider bundling new products or ones you expect to make a big splash as a way to get the word out about them.

3.    Advertise cannabis delivery services

There’s no rule against advertising your cannabis delivery services, and holiday shoppers are often short on time. Let them know that you can bring their gift purchases directly to them when they place an order for delivery. That’s one less stop they’ll need to make during the busy holiday season and they’ll be grateful to your brand for helping them out. It’s also a great way to let people know that your dispensary delivers cannabis, which is a relatively new offering for New Yorkers. Taking advantage of the holiday season to spread the word could result in more sales to a wider area in the new year too.

4.    Promote the product types shoppers look for during the holidays

Understanding how shoppers interact with cannabis dispensaries ahead of the holiday season is critical to success. While the biggest cannabis sales days of the year — 4/20 and Green Wednesday — are in the rearview mirror, there’s still time to make one last push before the year’s end.

According to data from Headset, the week before Christmas is a big shopping week in the cannabis industry. Expect shoppers to go for cannabis flower and vape products the most, as they usually do. However, you’re likely to see significant increases in the amount of topicals, cannabis beverages, and edibles. So push these products to make the most of the holiday rush — even though it’s cold outside, these product types are likely to be hot.

5.    Showcase holiday-themed products

There’s no shortage of products that fit the theme of the holiday season. Whether it’s an edible in holiday-inspired packaging, a product flavor like peppermint or cinnamon that matches the winter weather, or a frosty-named strain, these products have obvious links to the winter holidays without ever advertising a sale.

Take advantage of the holiday season for your cannabis dispensary

The holiday season is a busy time of year for retailers everywhere, and just because dispensaries can’t have sales doesn’t mean there isn’t plenty of opportunity. By considering the tips above, you can make the most out of the holiday season, driving more sales, boosting customer satisfaction, and refining your strategy for the new year.

Yotel Rooftop After Party, CWCBExpo NY 2022

Ohio Legalized Adult Use Cannabis. What Happens Next?

Ohio voters officially approved a ballot to legalize recreational cannabis on Tuesday, Nov. 7. As 57 percent of voters supported the measure, defying Republican legislative leaders who remain opposed to it in the legislature, the passage of Issue 2 made Ohio the 24th state to legalize cannabis for adult use.

 

What exactly did voters approve in Ohio?

Starting December 2023, Ohio residents aged 21 years old and older will be allowed to possess up to 2.5 ounces of cannabis and up to 15 grams of extract in the state. Individuals will be allowed to grow up to 12 plants in a private residence where at least two adults reside. Purchases from licensed dispensaries will be allowed as well, although it will be some time before adult-use dispensaries are open.

A 10 percent tax will be imposed on purchases. Those funds are earmarked to be spent on social equity and job programs, municipalities with cannabis dispensaries, an addiction treatment fund, and administrative costs.  

Under Issue 2, consuming cannabis in “public areas” would fall under the state’s “smoking ban,” and land someone with a minor misdemeanor. Furthermore: 

  • Property owners and “any public place” could decide for themselves whether to accommodate cannabis consumption.
  • Employers do not have to permit or accommodate an employee’s use, possession, or distribution of cannabis.
  • Someone who grows cannabis could give up to six plants to another adult, as long as no money is exchanged and the transfer is not advertised or promoted to the public.
  • The state’s current DUI laws will apply to those driving a car, bike, boat, or airplane while under the influence of cannabis. Passengers are also prohibited from smoking or vaping in the vehicle.

What does cannabis legalization mean for Ohio?

The new law would take effect on Dec. 7, 2023, allowing Ohioans to consume, possess, and grow cannabis starting that day. Regulators are expected to begin issuing retail licenses by late 2024, so retail sales are still a ways away.

An analysis from Ohio State University assessed the potential economic impact of legalization on the state earlier this year. It estimated that Ohio could see up to $403.6 million in annual cannabis tax dollars by the fifth year of sales. A separate analysis estimates that the passage of Issue 2 may create 3,300 new jobs in the first year.

 

Will there be changes to Ohio’s cannabis legalization rules? 

It’s important to note that as a citizen-initiated statute, the law is subject to change. Within hours of the issue’s passage, Ohio’s top elected leaders have already expressed their intent to make alterations. Some objectives voiced by Gov. Mike DeWine (R) include restrictions to prevent accidental ingestion, public use, driving while intoxicated, and advertising. There are also requests to revisit the tax structure and use the revenue for county jails or police training. 

“From our perspective, we want to make sure that we are maintaining the intent of the voters who passed Issue 2, but also being very thoughtful in giving flexibility back to our local communities in regards to how they use the revenues,” House Minority Leader Allison Russo (D) told Dispatch. Senate President Matt Huffman (R) said he also wants to assess the language regarding THC limits on cannabis products sold in the state. 

While questions remain as to what the final language will look like, Gov. DeWine claims none of the finalized language should come as a shock. “I don’t think there’s any surprises out there,” he told reporters.

Still, many advocates are encouraging lawmakers to enact the law as passed in the ballot referendum.

“This vote presents a tremendous opportunity for the state where legal adult-use sales are projected to exceed $1 billion annually,” Policy Director Rodney Holcombe said in a statement. “This move puts Ohio in league with 23 other states that have taken this significant stride forward. We have witnessed firsthand the positive impact of legalized cannabis, including job creation, tax revenue for vital government services and unique business opportunities for entrepreneurs. We urge Ohio officials to promptly enact the law, allowing their constituents to reap these benefits without delay.”

 

Unlock opportunity and insight with CWCBExpo

As Ohio embraces recreational cannabis, yet another hurdle has been cleared in the cannabis industry’s progress toward full legalization. To delve deeper into the world of cannabis, consider attending trade shows like the Cannabis World Congress & Business Expo in New York, which offer valuable information and know-how for any emerging market. Don’t miss the chance to expand your knowledge and network where the future of cannabis is unfolding. Visit our website to learn more and secure your spot at our next event, June 5th-6th, 2024.

Federal Reform Legislation Reintroduced as Industry Growth Continues

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the nation. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter to get the most recent edition when it’s published.

CWCBExpo’s news updates provide a comprehensive overview of the ever-evolving cannabis industry landscape. This month’s federal news update highlights potential changes in legislation as well as updates on workplace drug testing. From the first hearing on the SAFE Banking Act (again!) to changes in federal drug testing laws, get ready to delve into the latest updates from across the nation. 

Lawmakers reintroduce bipartisan legislation for federal Legalization 

U.S. Democratic and Republican lawmakers have reintroduced a bill to set the basis for the federal legalization of adult-use cannabis. The bill called the “Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act,” was reintroduced last week by Congressman Dave Joyce (OH-14) and House Minority Leader Hakeem Jeffries (NY-8). 

The PREPARE Act aims to foster collaboration among a wide range of experts in the pursuit of cannabis reform. It works toward the establishment of a federal regulatory system and strives to lay the groundwork for a more effective, informed, and inclusive approach to cannabis policy. 

“The PREPARE Act is one of the bipartisan solutions that will lay the groundwork to finally right these wrongs in a way that advances public safety and boosts our economy,” said Jeffries in a press statement.

U.S. lawmakers have attempted to pass legislation affecting segments of the cannabis industry in the past through legislation like the MORE Act and the SAFE Banking Act. However, there has been no luck so far passing a bill on a national level that affects the cannabis industry. 

Senate holds first hearing on the SAFE Banking Act 

The Senate banking committee held its first-ever hearing on May 11th regarding a bipartisan bill that would formally codify banking best practices for the cannabis industry.

The meeting, coined “Examining Cannabis Banking Challenges of Small Businesses and Workers,” featured testimony from lawmakers on both sides of the political spectrum, including Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT). Representatives from organizations such as the Cannabis Regulatory of Color Coalition, Drug Policy Alliance, and the United Food and Commercial Workers International Union presented their perspectives. 

“The cannabis landscape looks far different than it did a few short years ago,” Banking Committee Chairman Sherrod Brown (D-OH) said in a statement. “Cannabis has been legalized or decriminalized in almost every state. States and localities have established licensing and social equity programs to ensure that small businesses and communities impacted by the War on Drugs are part of the growing legal cannabis industry.”

While the bill has seen significant attention over the last few years with support from Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY), it’s still in the early stages of the legislative process. In order to become a law, it would need to pass the Senate and House before reaching the President’s desk for final approval. 

U.S. Department of Transportation finalizes cannabis testing policies

The U.S. Department of Transportation (DOT) amended its drug testing policy, in a move that carries potential implications for commercial drivers, truckers, pilots, and other equipment operators who consume cannabis outside of work.

Published in the Federal Register on May 2nd, the notice explains that oral saliva testing for THC is now permitted. Prior to this rule change, urine-based tests were required. 

Because THC can show up in drug screenings for weeks or months after consumption, urine tests have received backlash among workers and advocates who say these tests are ineffective and can infringe on privacy. These affected workers could be sober on the job, but may show up as positive for THC anyway. Oral saliva testing aims to adapt drug testing methods to better align with the evolving landscape of cannabis use, as THC is detectable in saliva for up to 72 hours after consumption. 

“Allowing employers to use oral fluid testing may improve the effectiveness of drug testing,” the DOT stated. “Oral fluid testing can detect the recent use of some drugs, including marijuana and cocaine, while urine drug testing has a longer window of detection.”

Stay informed with CWCBExpo 

To stay informed and up-to-date with the latest developments in federal cannabis news, there is no better place than CWCBExpo. Our news updates provide valuable insights, analysis, and resources. And don’t forget to mark your calendars for our upcoming in-person trade show – where you can connect with other industry leaders and fully immerse yourself in the cannabis community.  Join us at CWC to stay ahead of the curve and be a part of the dynamic growth of the cannabis industry.

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