Flower Co, the wholesale cannabis company made an official announcement that it has received $2.8 million funding from investors such as Slome Capital, Prehype, Rob Stapis, Adam Draper, and so on. The company has stated that this funding will be used to boost their delivery services and to lure people who buy cannabis in the black market. Although cannabis is legal in most of the states in the US, people still prefer buying cannabis in the black market due to huge taxes levied on the product. Now, the company is keen to change this trend and to bring more customers on board.
Ted Lichtenberger, CEO of Flower Co, stated that the regulated market for cannabis is only a quarter of the size of the unregulated and black market. He further added that the company is focused on cutting the cost of cannabis by devising various strategies to encourage people to buy cannabis from licensed companies. The company has a strong network of cultivators and partners with them directly eliminating any middlemen. This enables the company to reduce the cost considerably and to make cannabis products available to customers at discounted prices.
The company also has a membership plan through which the members can purchase cannabis at a 40% discount. The company believes that it makes a huge difference at the endgame and a nominal fee is charged for the membership. In addition to the discount, the members also enjoy faster delivery services and exclusive access to the company’s private events and concert series. The company has also recently come up with a two-day delivery service in the region of Sacramento.
Lichtenberger believes that they are still in the initial stages and they have a long way to go. The use of cannabis is still a controversial topic and industry experts believe that once cannabis is legalized federally, there will be a huge transition. Flower Co is one among those long list of companies that looks to stay ahead of the curve by creating a strong customer base.
