Marijuana Business Factbook 2019

216 Marijuana Business Factbook 2019 Chapter 4 | Financial & Operational Data: Cannabis Product Manufacturers © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. SUCCESS FACTORS CHART 4.10: Breakdown Of Edible & Beverage Sales By Item Price Note: Data from combined January and February 2019 recreational sales in California, Colorado, Nevada and Washington. Source: Headset © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Breakdown Of Edible & Beverage Sales By Item Price 0% 10% 20% 30% 40% 50% Percent Of Total Sales 4% 8% 45% 29% 13% 2% 1% >$45 $10-$15 $20-$25 $15-$20 <$10 $25-$35 $35-$45 While edibles and infused product manufacturers aren’t necessarily competing solely on price, it is still a major factor in consumer purchasing decisions. Nearly half of edible and beverage sales occur in the $15 to $20 price range, with 74% of sales within the $15 to $25 range. A proportion of consumers are willing to pay a little more for beverages and edibles in the $25 to $35 range, but overall, very few sales occur at price points above $35 or below $15. When introducing a new product, coming in at a higher price point requires a differentiator that clearly sets the product apart from others and focuses on what the high-end segment of the market wants. This may include factors such as small-batch edibles handcrafted items with organic ingredients or a nonalcoholic beverage crafted in partnership with a well-known and respected brewery. Some manufacturers will deliberately enter the market at a low price point, attempting to gain widespread adoption with retailers to grow market share. Once established, the company can raise prices and offer other higher-margin products to consumers.