Oregon is another state that led the charge in fully legalizing marijuana. After recreational marijuana was legalized in 2014, cannabis in Oregon has gathered an extreme amount of demand. Despite numbers indicating that the supply of legal marijuana was exceeding demand in 2017 and 2018 driving prices down, recently in March and April of 2020 Oregon’s legal cannabis market saw record-breaking sales, with sales in April breaking $89 million according to Portland’s local KGW8.
In 2019 the industry showed its strength despite minor setbacks with sales increasing by 24.1% sitting at $793 million according to new data from the state. That’s after a decrease in consumer prices which still sit under 2017 levels. Interestingly in the case of Oregon, sales were found to be higher near the border that the state shares with Idaho where cannabis is still illegal. While you’ll want to make sure you remain compliant with state laws and regulations, a location near the border may lead to greater sales.
While all states benefit greatly from the tax revenue collected by cannabis sales, the success Oregon has seen in its tax revenue from cannabis sales has been highlighted by many as a reason to legalize cannabis nation-wide to give the economy a boost and create hundreds and thousands of jobs for Americans. This is interesting considering Oregon has one of the lowest state taxes on cannabis taxing only 17% on cannabis sales according to the Portland Business Journal. While counties can tax an extra 3%, that’s still much lower than other states like Washington where cannabis sales are taxed at 37%.
With the United States in desperate need of economic stimulus in 2020, and with Oregon and other states who have legalized cannabis showing how beneficial cannabis can be in terms of taxation, we may see full legalization soon.
If you’re looking to enter the cannabis market in Oregon it is important to ensure that you have a functional and thought-out loyalty program that keeps customers coming back to your dispensary. As the market in Oregon continues to mature and grow, it will be essential to make sure that you keep the customers you have coming in now coming in in the future.
In doing this it will also be important to make sure that you can effectively communicate with and market to your customers. While the state of Oregon has many rules and regulations regarding marketing in the cannabis industry, text message marketing allows you to abide by regulations effortlessly and communicate with customers efficiently. In fact, text messages have a 98% open rate, with 90% of these being opened within the first three minutes of being sent, making them great for sending out the morning of a big sale or event.
In order to show you just how effective text message marketing can be, we analyzed the performance of Kaleafa, a dispensary chain in Oregon. We looked to see the increase in spend on days when text messages were sent, the ROI, and how long it took to gain ROI.
increase in spend on days when a text message campaign is sent
ROI for every 1 cent spent on text messages
to gain a ROI on monthly subscription