NECANN New York Recap: How to Set Your Dispensary Apart from Competition in a Saturated Market

Although New York only recently legalized recreational cannabis, the market is already becoming competitive. Recently, over 900 prospective operators applied for a Conditional Adult-Use Retail Dispensary License, of which only 150 applicants will be selected to open the state’s first dispensaries. With an established black market and additional licensing opportunities becoming available in 2023, the New York cannabis market is already shaping up to be one of the most saturated in the nation.

In a panel titled, “How to Set Your Dispensary Apart from Competition in a Saturated Market,” cannabis industry experts from multiple sectors shared their expertise on a variety of topics including licensing, operations, and dispensary design. This engaging panel was hosted by NECANN, the longest running cannabis and hemp convention in the Northeast, and was held in Albany, New York.

Featuring Virginia Maggiore, Principal of RDC, Katelyn Coskey, Director of Business Development for Point Seven Group, and Leo Falgout, Chief of Staff for Sapphire Risk Advisory Group, this discussion was moderated by Katharine Baxter and presented to an audience of both licensed and prospective dispensary operators.

Dispensary Licensing

The session began with a talk about New York’s cannabis dispensary licensing program and the panelists discussed strategies licensees can utilize to ensure their application exceeds the standards set by competing applicants.

“Getting the license can be the biggest challenge,” said Virginia Maggiore. “But having the right location, design, and layout can be the difference in winning a license over your competitors.”

“Dispensaries in New York should expect heavy competition, not only from other licensees but also from the well-established black market,” said Leo Falgout. “Entrepreneurs need to explore any advantage they can find.”

“Be as detailed as possible in your application,” said Katelyn Coskey. “Instead of just saying you intend to work with someone once operational, actually have that vendor or individual picked out. Then you should elaborate on their previous cannabis industry experience or relevant background to demonstrate that your group is more prepared than the competition.”

Dispensary Planning

In addition to discussions on licensing, the experts talked about how applicants can plan their dispensaries in a way that ensures success through dispensary design and operational strategies.

“When designing your dispensary, it is important to understand how you want to operate and lay out your business,” said Virginia Maggiore. “If you don’t consider your operations during the design process, you may end up with a dispensary layout that does not support your business.”

“Proper planning prevents poor performance,” said Katelyn Coskey. “Proper planning from the start prevents costly buildout delays and poor designs that don’t make sense for the business once operational.”

“Without property, it may seem logical to wait until you know more. But the opposite ends up being true. Those who plan ahead and then adapt get advantages in security expenditures, branding, and customer experience,” said Leo Falgout. “The longer you wait to manage your project, the more delays or poor decisions you have later.”

Customer Loyalty

The panelists also discussed how dispensary operators can connect with customers and encourage customer loyalty once operational.

“It can be hard to stand out among a sea of options,” said Katelyn Coskey. “So, you should get granular with who your customers are and focus on keeping a loyal customer base, rather than hyper fixating on enticing the next group of customers.”

“When planning your dispensary, you should figure out what your customer appeal is going to be,” said Virginia Maggiore. “Figure out what makes your brand special and different from competitors. This will keep your customers coming back to your store, rather than the dispensary down the street.”

The panel ended with an opportunity for attendees to ask questions of the experts.

How Can RDC Help?

RDC’s team of architects and designers have worked extensively with retailers in the cannabis industry. Our team works with dispensary owners to design and buildout optimal user experiences and aesthetics!