Cannabis data startups help the businesses of marijuana growers, retailers, and dispensaries work smoothly with point-of-sale technology. The POS technology provides direct access to the information about the most demanded pot strains, products, or inventory collected either from dispensaries or consumers.
Newly appearing companies, like Baker, Greenbits or BDS Analytics, offer business-to-business and business-to-customer data services aimed to improve the activity on the cannabis market. However, these startups cannot ensure an equal tracking of weed POS information in all states where marijuana is legal because of the differences in state laws. Nevertheless, these services seem to be useful for the pot market players.
For example, Baker, a Denver-based data company, has developed a helpful mobile app that allows weed users to locate their favorite cannabis strains anonymously. Serving more than a hundred dispensaries across Ontario, Colorado, Oregon, California, and Washington, the company also informs buyers about discounts, product availability, and loyalty rewards for online purchases.
According to Joel Milton, CEO of Baker, the company is aimed to improve the shopping experience by making it more comfortable for weed users and to give more business opportunities for cannabis retailers.
However, the information collected by these startups is specified by the services they are providing. Although Baker is very useful for consumers who can locate their favorite products and for dispensaries that can see the whole picture of their business, the company does not have any data regarding the compliance aspect of marijuana tracking.
Fortunately, Greenbits, another data company on the cannabis market, managed to deal with these statistics. This startup is located in San Jose, California, and does not have a special application for pot users, but instead it offers simple software for marijuana retailers that helps dispensaries abide by the state laws. Due to the company’s data, state authorities can track products and sales and also get informed if any dispensary sells cannabis to underage consumers.
Although states have different marijuana regulations and technology, Greenbits managed to develop technological solutions taking into account all legal nuances. Ben Curren, CEO and founder of Greenbits, says that it was as hard as creating a global business. Each state has their own system of tracking. For instance, Washington government launched seed-to-sale tracking that included application program interface (API) of the software, while in Colorado, there was no API in the software system, and it was difficult to track sales information in the state.
Other data companies are more targeted at the industry needs rather than consumer preferences. BDS Analytics carries out market research, collects weed retail data, and provides consulting services to marijuana businesses. Thanks to their activity, dispensaries and retailers receive information about the size of their market share and business opportunities. The company also provides data about the best-selling weed strains and products, which is necessary for cannabis growers and producers. Retailers take this data into account when setting up prices and determining what products to offer in their stores.
Similar data is available in other industries, but the cannabis sector is still in its infancy because of legal limitations. The data companies try to ensure the security of their information to avoid sharing with competitors, but more established dispensaries are using their own data to make business decisions. However, an increasing number of cannabis businesses are cooperating with data companies, as they recognize that their services provide a tremendous amount of useful information.