New Jersey’s adult-use cannabis market will be the biggest on the East Coast and one estimated to see close to a billion dollars in sales in just a few short years.
Many businesses can’t wait to tap into this lucrative new market even if New Jersey dispensaries still will confront many of the old challenges that have plagued markets in every other state that has legalized recreational cannabis. From unwieldy regulatory mandates and stringent taxation requirements to municipal dispensary bans and even a limitation on capital sources, New Jersey’s regulators have their work cut out for them as they form new rules for the state’s profitable new venture.
Here’s a look at three of the biggest overall challenges that N.J. cannabis companies – and especially the state’s new adult-use dispensaries – will face.
Cannabis-industry regulatory compliance is complex and different in each legal market, but adherence to it remains one of the foremost requirements. Cannabis businesses of any kind that are found to be non-compliant can face onerous financial penalties, some of which can be devastating to new and smaller businesses trying to get off the ground. That’s why it’s important they utilize trusted supply-chain management solutions that ensure they are adhering to established rules.
Also important is that these supply-chain systems offer consistent and well-documented records that can protect cannabis companies facing the oftentimes inevitable compliance audits. For example, Leaf Trade is built on a technical system that diligently validates all of its participants, ensuring that stakeholders are legally compliant and working with active licenses in the states where they are authorized to conduct business transactions.
Adult-use sales in the state are going to be hugely profitable because of the strong demand driven by New Jersey’s neighboring populations in NYC, Philadelphia, Baltimore and a dozen other metro regions where recreational cannabis is not yet legal.
But already, New Jersey’s established medical-cannabis dispensaries – legal and operating since 2010 – have trouble keeping up with demand for their own medical patients. And though the state’s existing medical-cannabis companies are ramping up to meet demand, supply issues will continue to be some of the biggest challenges.
Leaf Trade’s platform of custom wholesale storefronts provides a ready portrait of the kinds of products retail customers are most interested in, as well as predictive analyses that identify selling and purchasing trends. In New Jersey, this kind of retail information will help both wholesale sellers and retail purchasers better understand customer preferences and and quickly translate to retail sales.
Understanding wholesale purchasing.
For new cannabis retailers, it’s often eye-opening to learn just how fragmented wholesale operations can be. For dispensaries, it can be difficult to track product sourcing efficiently and accurately.
Old-school ways of conducting wholesale purchases can be more than just a system of frustrating inefficiencies, because any missteps along the path of wholesale purchasing can threaten sellers and buyers financially when orders fail because of errant inventories or when expected purchases never materialize because of miscommunication.
Closed marketplace operations like those implemented by Leaf Trade, though, offer a streamlined way of connecting trusted wholesalers and retailers. Gone are the multiple emails and time-consuming spreadsheets, replaced instead with a standardized e-commerce platform that is easy to use and manage, validated with trusted participants and focused on the best practices of profitability for an industry like cannabis that is so tightly controlled.
Leaf Trade’s platform also keeps track of invoices with key accounting integrations like Sage & Quickbooks. And Leaf Trade’s proprietary financial automation tool, Leaf Pay, leverages digital efficiencies that provide advantageous benefits to dispensaries, wholesale operations and any other cannabis businesses looking to succeed.
The right technology integrates everything
Understanding how technology can affect wholesale cannabis markets is crucial for companies in New Jersey’s new marketplace, as well as Arizona, Virginia and the handful of other new adult-use markets that are forecast for 2021 and beyond.
Maria Johnson, directory of national sales at Verano Holdings, says it’s an understanding crucial to her MSO and its use of Leaf Trade.
“Our cultivation facilities and dispensaries use Leaf Trade in every market we are in, including New Jersey,” Johnson says. “We love the 1:1 storefront experience and custom inventory controls Leaf Trade provides. And the buyers like that they can order for multiple locations at once, buy cannabis and ancillary products, download COAs, and even pay electronically through Leaf Trade. It’s a one-stop shop.”