Customer loyalty is an elusive concept that every retailer strives for, as this type of goodwill is what enables a business to endure over months and years. To develop this loyalty, retailers need to find a way to stand out from their competition and offer something unique that customers will come back for again and again. But when retailers are forced to follow rigid provincial and federal guidelines, distinguishing oneself from the competition can be a challenge, to say the least.<\/p>\n

Wholesale Monopoly Limits Pricing and Stock Options<\/h3>\n

All authorized retailers in the province are required to obtain their stock of cannabis products from the same wholesaler, which is owned by the province itself. This means every store has access to the same products at the same prices, limiting their options to offer unique pricing or products to customers. By contrast, in Saskatchewan, for example, retailers are permitted to negotiate directly with producers, which allows them to keep costs down. Further, there still exists a black market in Canada where unauthorized retailers are selling huge varieties of products such as edibles that are not available through legal means. The lack of regulation means these retailers can offer products, packaging and pricing that licenced retailers just can’t access.<\/p>\n

Federal Advertising Rules<\/h3>\n

Similar to alcohol and tobacco rules, there are strict limits on how cannabis retailers can advertise their products and services. For example, advertisements can not be made to appeal to anyone under the age of majority in a respective province (19, in Ontario). Further, retailers are not permitted to use testimonials, including the ever-growing influencer market, to speak to the quality of any cannabis product. Instead, testimonials are required to focus on the brand over the product. Cannabis can also not be made to be associated with an appealing lifestyle or any medical benefits as part of any advertising campaign. While these rules are in place to protect young people and others, they do place quite a few restrictions on how business owners can get their brand into the collective consciousness.<\/p>\n