Gray said she cuts costs by using hybrid vehicles, including the Prius, to make deliveries. “Our top shelf flowers are now all different from what we had July 1. Gray said having consistency in popular items is the key to retail success. Fortunately, now sales are up,” said Gray. I would say the first two weeks of July were very difficult. Monica Gray, owner of Nice Guys Delivery, a San Rafael-based cannabis delivery service, said she had to quarantine and destroy at least $40,000 worth of product. This can impact how much cash we have on hand, but the last thing we want is to be out of stock,” said Melrod. Now we're ordering six to eight weeks' worth. “Typically, we ordered two weeks' worth of supplies. Melrod said the impact of the emergency regulations changed how he orders products. Right now the shelves are really well-stocked,” said Melrod. We still have a wait list for some products. “There were a few weeks in July where we didn't have what we usually do. The margins are extremely different as well,” said Bjork.Įli Melrod, CEO of Solful, a recreational cannabis dispensary in Sebastopol, said the dispensary was out of stock of some products in July. We are still in the process of rebuilding our inventory. All of our old inventory had to go to waste management. “After July 1, we had half as much inventory to choose from. We handled the demand by starting a wait list,” said Raphael.īrian Bjork, CEO of San Rafael-based Marin Gardens, a medical cannabis collective and delivery-only dispensary, said the new regulations hurt his business “pretty badly.” We've had to explain to every patient what was going on. It has been hard explaining this to the customers. By the end of September, the rest of the brands will come back. Raphael said that in July, her business went from having 150 stock-keeping units (SKU) to 5 SKUs available. Raphael is also the current president and the founder of the Marin County Couriers Association, an association of cannabis delivery businesses in Marin County. “You almost feel like the cannabis family was pulled apart and shaken to see who could hold on,” said Nurit Raphael, founder of ONA.Life, a San Rafael-based cannabis delivery service. (Adapting) is toughest for a really big organization, with so many things to move, and a really small organization, which does not have a lot of resources,” said Samantha Miller, CEO of Pure Analytics, a Santa Rosa-based cannabis testing laboratory.ĭispensaries and delivery services felt the pinchĪlthough customers enjoyed knowing cannabis products were safer and pesticide-free, the more stringent lab-testing regulations led to a shortage in the cannabis supply for July and the first half of August. “When you have to pivot, you may not be able to anticipate all of the costs. The August-proposed regulation substitutes the child-resistant packaging with a “new exit package” requirement, which states that a bag that a customer exits a cannabis store with be child-resistant, resealable and opaque. * A requirement that each cannabis product be sold in its own child-resistant package followed by the August-proposed regulation that would eliminate the child-resistant packaging requirement. This is an increase from the previous limits of 100 milligrams per package. * A potency rollback allowing medical cannabis products to have up to 500 milligrams per package. * Permission for cannabis products to be delivered from any in-state location to any other in-state location. The major changes from the initial and second drafts of the emergency regulations included: 27, are expected to take effect in early December. The changes phased in new testing requirements originally expressed in the January regulations. 7, 2017, and the second version of these regulations on June 4. The state first issued its initial emergency regulations of the emerging cannabis industry on Dec. After a summer in which shifting state labeling and testing requirements have led to increased costs and logistical concerns, causing layoffs, shortages, and in extreme instances, business closures, North Bay cannabis cultivators, distributors and manufacturers are starting to see better times.
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