Flowhub Archives - Page 2 of 2 - Green Market Report

Debra BorchardtJuly 10, 2018
Vape2.jpg?fit=960%2C403&ssl=1

10min43590

Happy July 10. 710 is a thing for cannabis consumers. If you don’t know what that is, it’s okay. We’re here to help you learn. July 10 is or 710 is becoming a big sales promotion day and is growing in popularity. Cannabis consumers are always happy to find a new reason to celebrate and since 420 has been adopted by even non-cannabis consumers, 710 or Dab Day is the latest insider holiday.

If you turn the numbers upside down, it loosely resembles the word “OIL.” So, fans of cannabis oil as using that as an excuse to celebrate. Not convinced?

According to MJ Freeway, point-of-sale (POS) data from thousands of cannabis retailers across the U.S., Monday, July 10, 2017 sales were 15% higher than average Monday sales. The 15% increase can be wholly attributable to increased concentrate purchases. Concentrate category sales jumped 18% on July 10, 2017.  In the last three years, year-over-year 710 holiday sales growth has averaged 19%.

In addition to that, MJ Freeway predicts a sales spike of more than 25% today. Of course, these sales pale in comparison to 420 sales, but it is significant enough for dispensary owners to recognize it. Plus since 420 has been so heavily commercialized, it gives cannabis consumers a new secret handshake.

Cannabis oil can also be described as concentrates or extracts and has become one of the fastest growing categories for sales. It’s been well documented that flower sales have either stalled or declined as oil sales increased. MJ Freeway noted that the flower category share as a percent of total product sales has declined 14% since 2014. Comparably, edible category share growth is up 2% since 2014.

The company went on to say that on average, individual cannabis retail locations have experienced the following product sales growth since 2014:

  • Concentrate sales have grown 412%
  • Edibles have grown 272%
  • Flower sales have grown 149%

Flowhub Data

Cannabis data provider Flowhub has also picked up on this trend in sales growth. The seed-to-sale software company tracked a sample set of cannabis consumers on this holiday over the course of one year. They found that there was an 88% growth in concentrate sales when comparing 7/10/2016 against 7/10/2017 for the same sample set of customers. ($15,053.75 in 2016 and $121,802.14 in 2017). In comparison to an average Monday, sales of concentrates increased 34% on Dabs Day 2017, and in comparison to an average Tuesday, sales of concentrates increased 26% on Dabs Day 2017.

Promotions 

Cannabis oil companies aren’t missing the opportunity to use the holiday to promote their products. The Green Solution is offering up to two grams of NectarBee shatter, wax and pie crust concentrates for $24.95 each on July 10. If there isn’t a dispensary in your area, the online cannabis catalog on iheartjane.com currently has over 20,000+ cannabis products specific to the “extracts” category, which is the largest offering in the world.

If companies aren’t sure how to approach this holiday, MJ Freeway has created two retail guides:

 

 

 


William SumnerApril 12, 2018
shutterstock_551309110.jpg?fit=960%2C708&ssl=1

3min32020

Flowhub, a provider of compliance software for cannabis companies, announced today that it had entered into an agreement with technological giant Hewlett Packard (HP) to provide the company’s clients with HP’s ElitePOS Retail Point of Sale Terminal.

The ElitePOS Retail Point of Sale Terminal is currently on sale now and can be purchased online through Flowhub’s website. Integrated with the metrc compliance and business management platform, the terminals will help assist dispensary owners in keeping accurate records and staying compliant with state cannabis laws.

“HP is one of the largest and most innovative retail hardware manufacturers in the world,” said Kyle Sherman, CEO of Flowhub. “As we expand to new markets like California, we couldn’t think of a better partner. Retailers in this industry are bombarded with hobbyist software solutions with consumer hardware choices that cause compliance and operation headaches. Flowhub is excited to offer professional retail standard solutions that you’d find in other industries.”

As more states begin to legalize cannabis, the need for hardware and software to track cannabis sales and transportation records has become an ever-increasing concern. Flowhub’s partnership with HP is just the latest in a line of tech companies that have begun working with the cannabis industry.

Tech Giants Join Cannabis Industry

In 2016, Microsoft announced that it would welcome Kind Financial, which is also a cannabis compliance company, onto its Azure Government platform. A little more than a year later, news also broke that IBM had submitted a three-page proposal to the Canadian provincial government of British Columbia endorsing the idea of using blockchain as part of a seed-to-sale tracking system.

“HP is delighted to have our ElitePOS point-of-sale system selected by Flowhub for this comprehensive solution targeted to the growing Cannabis industry,” added Aaron Weiss, HP Vice President and General Manager for Retail Solutions. “Flowhub is one of the original metrc™ approved vendors with years of compliance experience, and HP is delighted to be a key part of the solution in this exciting new regulated industry.”


Peggi CloughFebruary 13, 2018
shutterstock_714485299-1.jpg?fit=1200%2C800&ssl=1

5min35140

Valentine’s Day spending by U.S. consumers is projected to reach $19.6 billion in 2018, according to an annual survey by the National Retail Federation (NRF) and Prosper Insights & Analytics. That’s up from $18.2 billion spent last year.

Cannabis shopping for the holiday has increased dramatically as well. Colorado-based point-of-sale software company Flowhub compared last year’s weekend sales before Valentine’s Day versus this year’s and reported a 22% increase in total sales year-over-year. Edible sales jumped a whopping 42% over last year

“With the holidays behind them and the winter months dragging along, consumers are looking for something to celebrate this time of year,” said NRF President and CEO Matthew Shay about overall Valentine’s spending. 2018 looks to be the second highest spending year in the survey’s 15-year history, with the most having been spent in 2016—$19.7 billion.

Valentine’s Day was the fourth most popular holiday for cannabis use last year, according to Eaze’s 2017 State of Cannabis report. The report covers current cannabis trends in California and is published annually. It showed use increased across all major holidays in 2017.

Not just for men, either. Eaze also reported that women’s use of cannabis is increasing, from 25 percent of the total users in 2015 to 35 percent in 2017. Their monthly spending increased last year by 20 percent too. Monthly spending on cannabis is up in all age groups from where it was in 2016.

The gift market and choices for cannabis users have grown exponentially in the past few years. The number of products available on Eaze increased by 323 percent from 2016 to 2017. Last year was the first that saw ready-to-use product use surpass flower use.

In 2017, women were more apt to buy cannabis-related health and wellness products, while men were inclined to choose concentrated forms of cannabis.

Non-cannabis Valentine Statistics

Of the 55% of Americans celebrating Valentine’s Day this year, most plan to buy for their spouse or significant other. They expect to spend an average of $88.98, accounting for $12.1 billion of the total spending. The next largest group receiving gifts is family members, averaging $25.29 each, for a total of $3.5 billion.
Many retail stores are running holiday specials and promotions this week in preparation for Valentine’s Day, and cannabis companies and dispensaries are no exception. Be sure to keep this in mind as you finish your Valentine’s Day shopping.

Coworkers shouldn’t expect to fare well this Valentine’s Day: consumers only plan to spend an average of $4.79 on them, while spending $5.50 on pets.

The biggest spenders are in the 25-34 age group; they plan on shelling out an average of $202.76. Almost half of them—41 percent—plan to give gifts of experience, such as concert tickets or vacations.

Jewelry tops the gift categories. It’s expected to be given by 19 percent of buyers, for a total of $4.7 billion. Two other traditional holiday favorites, flowers, and candy will account for $2 billion and $1.8 billion, respectively.

Retailers still have a chance to make sales from those not celebrating the holiday: 27 percent of people in this group plan to observe the day in some way, either by spending it with friends and family or by splurging on themselves.

“Valentine’s Day has become a holiday consumers take advantage of not only to spoil their loved ones but themselves,” Prosper Insights & Analytics Executive Vice President of Strategy Phil Rist said.

 


Debra BorchardtJanuary 26, 2018
Seed.jpg?fit=1200%2C675&ssl=1

3min34660

Kyle Sherman, the founder of cannabis software company Flowhub knew he wanted to be a part of the cannabis industry. His personal experience with anti-depressants and his desire to rid himself of those drugs led to experimentation with medical marijuana. His success with that withdrawal gave him an intense passion to work towards legalizing cannabis so others could benefit as he had.

In 2014, he headed to Denver, Colorado as the legal cannabis market was blossoming. He worked with Dixie Elixirs, WeedMaps and ultimately ended up as a compliance officer. Through this work, he realized that there was no way to report to the seed-to-sale tracking software Metrc through an API (application program interface).

“I started to investigate and look for something that would work. Instead, I built a prototype,” said Sherman. He closed on a seed round of funding in 2015 for Flowhub and was the first to integrate with Metrc’s API. For the business owner, it provides automatic compliance with state regulators by sending back information directly. Flowhub also has a handheld device that cultivators can use to scan barcodes and track plant movement. It can track employee productivity as well, saving employers money and headaches.

On the retail side, Flowhub has a point-of-sale technology and can manage inventory. The company partnered with CannaPay for cashless payments. “We track everything,” said Sherman, noting that all of this tracking protects the business owner.

The California Challenge

His latest challenge is the California market. The state just began legal sales of adult-use marijuana on January 1, but the Metrc system is not in place yet and many businesses are operating with a temporary license. Sherman said he believes that companies will receive permanent licenses when Metrc goes live. “I also think some of the companies with temporary licenses won’t get permanent ones,” he said.

While the Denver market has embraced the regulatory environment, some Californians have been reluctant. “You’ve got folks who are open-minded to this shift and then you have other groups that are operating in the grey market and are resistant to change,” he said. “They don’t want to report to Metrc.” Sherman found this was a tough conversation to have with a lot of long-time cannabis businesses. “A lot of folks are not willing to look at solutions,’ he said.

Of course, at some point, these business rebels will have to capitulate and join the regulatory landscape or face getting shut down. Sherman noted that the savvier business owners realize they have to do this and aren’t fighting it.

 


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 2 hours

New Report from ⁦@headset_io⁩ Says Medical Cannabis Consumers Spend More. New story from ⁦@julsaitch⁩

@GreenMarketRpt – 3 hours

Yowza. Be careful when investing in crowdfunding deals. SEC files complaint against CEO and others for…

@GreenMarketRpt – 4 hours

GMR co-founders and celebrating 4 years of entrepreneurship. It’s been a wild and crazy…

Back to Top