When Bill Clinton was running for the US Presidency against G. H. W. Bush (Dubya’s father) in 1992, his campaign’s internal mantra was “It’s the economy, stupid.” This mantra advised his campaign staffers to focus relentlessly on Bush’s weakest point, which was a sharp economic recession. The point was not that voters were stupid, but that campaign staffers would be stupid to ignore Bush’s weakness on this point. (Bill Clinton won.)
Similarly, a new report from Deloitte Canada makes it clear that the greatest weakness of legal cannabis products is their price.
As you can see in Figure 1 below (from Page 17 of the report), Deloitte’s survey results indicated that:
- Brand: was the least important purchasing consideration, cited by only 15% of current users.
- Price: was the most important purchasing consideration, cited by five times as many current users (75%) as brand.
This suggests that the smartest players in the global cannabis industry should be making plans to reduce their products’ costs (and therefore prices) ASAP.
And then, maybe, worry about their branding. Because it’s the price, stupid.