Indie cannabis operators vs. MSOs? Consumers dont walk the talk

As cannabis businesses strive to establish brand loyalty, they’re learning that consumer purchasing habits don’t always align with stated preferences.A recent survey by California-based medical marijuana telehealth platform NuggMD reveals that although consumers indicate a desire to support independent cannabis businesses – even if it means paying a premium – price and potency often win the battle for their dollars.

ADVERTISEMENT The survey of 602 marijuana consumers asked: Would you pay a premium for cannabis that’s cultivated, distributed and sold by small, independent businesses as opposed to large multistate operators? More than half (51%) of respondents to NuggMD’s Cannabis Consumer Poll said they would pay a premium, and 41% said they would consider it.Only 6% of those surveyed said they would not pay a premium.

Although consumers indicated they would pay a premium for products produced by smaller, independent companies, when asked what’s important to them while shopping for marijuana products, 29% said price and 37% said price selection, according to NuggMD.Andrew Graham, head of communications for NuggMD, said the company’s survey shows that independent marijuana operators have an edge in competitive markets if their branding is strong.

Big marijuana can learn from the little guys But the poll also is instructive for MSOs.“Cannabis consumers are willing to pay a premium for products that are local and independent of too much corporate influence, similar to the farm-to-table restaurant model that works so well in so many places,” Graham said.

“If MSOs can convince consumers that they’re ‘farms,’ too, then they can give customers what they want while also potentially capturing larger margins.” Consumers want products that offer a sense of identity and purpose beyond mere functionality.“I think (the survey responses speak) to overall consumer desire that you don’t want...