Control Costs in a Market Downturn
In the fast-paced and rapidly-evolving cannabis industry, market downturns are a common occurrence. These downturns can be challenging for businesses, but there are ways to minimize the impact and come out stronger on the other side.
There are an array of opportunities to cut costs and keep your business thriving during difficult times.
Quotes from Pros
Phil Niles, EVP of GreenSeal Cannabis Company, a licensed cannabis producer out of Ontario spoke to Cannabis Business Times and stated that, “These opportunities exist, but they require a willingness to change [and] also a willingness to look very honestly at your own business.”
He continues to write that his team is always open for R&D in their business to innovate and eliminate excess expenses. “That would be my point of encouragement to everyone else. There is no bit of your business that should be off-limits to analysis and change, and it’s just a question of figuring out which changes make the most sense for your business.”
At Cann Drying Systems, we completely agree and understand that no aspect of a business should be off-limits during economic turmoil. If you aren’t innovating, automating, and eliminating wasted energy, a competitor most definitely is.
5 Action Items:
Reduce overhead costs: Have you or your team truly looked at your energy bills recently? Ready to stop making trips to the store to purchase or fix fans and HVAC units? Cann Drying Systems are built for the long run. Check out how reliable they are. Additionally, be ready to shed lower level payroll expenses as our commercial cannabis dryers are automated and require minimal manual labor and maintenance costs..
Streamline operations: Look for ways to streamline your operations and eliminate inefficiencies. Automate tasks where possible and eliminate redundancies. This can help reduce labor costs and increase productivity.
Focus on high-margin products: During a market downturn, it’s essential to focus on high-margin products that generate the most profit. Drying for high quality flower? Drying for extracts? Tailor your chamber to focus on a specific output that your operation specializes in. Our terpene capture system draws moisture from treated air over cooling coils and converts to a liquid with terpenes that would have otherwise been lost in a traditional dry room if you’re looking for additional usable terpenes.
Invest in marketing: While it may seem counterintuitive, investing in marketing during a market downturn can pay off in the long run. Consider ramping up your marketing efforts to increase brand awareness and generate leads. Even at Cann Drying Systems, we chose Q1 ‘23 to revamp our branding and website. Check out our Instagram page to see what we’ve been up to this year!
Seek professional advice: Don’t be afraid to seek professional advice. Our team is happy to consult regarding custom solutions or turnkey chambers that may best suit your needs. We are also thrilled to offer our equipment financing options to get your operation the commercial cannabis drying equipment needed to stay future-proof and GMP compliant.
Market downturns can be challenging for cannabis businesses, but they can also be an opportunity for growth and improvement. By implementing these tips, you can control costs, improve cash flow, and position your business for long-term success. Remember to stay focused on your goals and stay flexible to adapt to the changing market conditions.
Be sure to contact our team today to learn more about our ability to save your operation time and money this growing season.