This post was originally published on this site.
NYCBUD just opened its doors on Feb. 16, making the Long Island City dispensary a new kid in a town with overwhelming demand for weed.
The company has a business plan and an idea of its target demographic, but as a store that’s been in business less than a month, NYCBUD is still feeling out the market, and tracking data on what customers are buying.
In a Q&A with NY Cannabis Insider, NYCBUD co-founder Jonpaul Pezzo answered questions about what customers are buying, how things have been going in the store’s first few weeks in business and the company’s long-term plans.
About how many customers are you seeing on weekdays and weekends?
Since we officially opened our doors a few weeks ago it’s simply too soon to tell. This is such a new industry, and every neighborhood and store are fundamentally different, so no number of projections or estimations can compare to the real thing. With that said, we were smart about our demographic and projected estimates and feel comfortable where we are.
How many full-time and part-time workers do you employ?
About 10 full-time and 15 part-time.
What kinds of products are selling the most?
According to data from our first few days, name-brand flower like Sour Diesel is selling the most.
What brands are selling the most?
It’s currently neck and neck between Zizzle and Dank right now for flower and pre rolls, with Packwoods coming up close behind. However, every week we will be receiving new items to test and showcase, so these numbers and trends are subject to change.
Which demographics do you see as your target market?
We’re targeting the older demographic in the 30- to 50-year-old range, as well as the young professionals who can afford to live in a vibrant neighborhood like Long Island City.
Can you describe your business experience outside of cannabis?
There are three founding partners at NYC BUD and we hail from a variety of industries. I have been in the nightlife industry and run nightclubs for over 20 years. Another partner, Giancarlo Pinto, owns Ferrari Driving School in Queens, which is the largest driver training school in the NYC metropolitan area. The final partner, Salvatore Pinto, owns a Pizzeria, Joe and Johns, in Ridgewood.
How does that experience translate to running a cannabis dispensary?
The work we’ve done in nightlife and the event industry has prepared us in many aspects for running a cannabis dispensary. Dealing with backend inventory and close outs are two things that are very similar to running a bar or club with liquor inventory and managing floor staff. The driving school also helped prepare us with skills to create customer loyalty, develop marketing campaigns and track customers. Running a pizzeria is incredibly demanding work and has provided us with the necessary skills to run a customer-facing retail business.
How much of a problem do illicit cannabis shops present to your business?
The illicit market is a gigantic problem. The guidelines we have to follow require us to have a very high payroll to operate, and they handicap our ability to market the business. Meanwhile, down the block they can sell untaxed items next to a church, across the street from a police station, and have neon signage and all the marketing tools we are unable to utilize.
If all the illicit shops were shut down, we’d all have a better chance, plus it’s safer for everyone. We are big supporters of the Smokeout Act, which NY needs to pass now to give us all a fighting chance of competing.
Are you worried about competing with adult-use dispensaries owned by ROs?
Not so much because we know our business model and we do not worry about others. We do not believe it is fair to allow them into the market since the roll out of the CAURD program was so delayed, but we are not worried about the competition because we know our customer and are focused on maximizing our success.
Can you tell us about your long-term plans for your store?
In the future we are looking to open in every borough. Our brand captures the essence of NYC in an immersive and tactile way, and we want to make sure everyone in every borough can have that same experience no matter where you are in New York City.
What state cannabis policies/regulations do you think are the most helpful to your business?
While some think it is overkill, the state’s security regulations keep the stores safe and give us the chance to provide a safe environment for our customers and staff.
What state cannabis policies/regulations do you think present the most challenges to your business?
The reporting policies are challenging to abide by in such a fast-paced business. It is particularly challenging because the information was not set up to be uniform between farms and retail and the Office of Cannabis Management. We are trying to bring all our partners’ farms into a groove where we can receive reports and inventory items in a smooth and effective manner.
Can you describe how you’re hiring and training employees?
We conducted a hiring fair before we opened, and we pretty much loved everyone who came in. Unfortunately, we could not hire them all, but we are very pleased with the staff we have.
We trained them over the course of two days, but the truth is the training never stops as everyone needs to learn about new products coming into the market. The budtenders really are critically important because they are on the front lines with customers, and we take their training seriously.
What advice would you give to other entrepreneurs planning on opening dispensaries?
Opening a dispensary is hard work and it’s unlike any other kind of retail. Between all the state’s regulation and compliance mandates, as well as the challenges resulting from federal prohibition, it makes selling cannabis far more challenging that anyone would expect. Also get ready for endless paperwork! It’s not easy, but it’s worth it!