California’s Flower Co. changes the marijuana sales model upside down
California has seen the price of legal cannabis shoot up by 100% over the past year. In San Francisco, for example, the price of an eighth of an ounce has hit $100 and this is turning off more consumers on a regular basis. To make things worse, $100 isn’t even the standard rate – prices range from as low as $15 per eighth-ounce to $100, where previously the standard price hovered consistently around $60 for the same amount. A company is trying a different tactic that is designed to offer the same products at greatly reduced prices in an effort to control California’s cannabis market.
Flower Co., often referred to as “the Costco of cannabis,” offers membership programs, similar to that offered by the retail company. For $79 a year, consumers have access to different cannabis brands and typically pay 30-50% less than normal retail prices. It now has around 600 members in the San Francisco area following a launch in LA earlier this month that was designed to attract popular celebrities such as Childish Gambino and Drake.
The most popular product offered by the store is the $25 half-ounce “pre-ground” Blue Dream. Compared to normal retail prices, Flower Co. is selling it for less than half what consumers pay elsewhere.
While California deals with an uncertain marijuana future, Flower Co. co-founder Tony Diepenbrock sees the solution as the perfect alternative to find stable prices. He explains, “Flower Co. offers a great alternative to people who can’t tolerate the price increases of California legalization.”
The concept may not be attractive to all consumers – small purchases or same-day deliveries aren’t on the menu. However, it can be an excellent alternative to the outrageous price fluctuations seen in California and the model will most likely make its way to other areas around the country.