CBD has become a major deal in our society today. We find so much content being churned out daily on the miracles of CBD oil and all of these further drive this market. It is currently projected that by the year 2024, this market will be worth upwards of $20 billion in the United States alone.
It’s impossible to talk about cannabis in any form without mentioning California. The state has been at the forefront of many developments in this segment of the economy and health care. It’s, therefore, no surprise that California is listed as being the largest cannabis market in the world. You can read about it here.
While the above report is a great thing for the state, it poses some major issues for the individual companies that are engaged in the actual trade.
In this article, we will try to look at a few of these challenges especially as it has to do with Los Angeles. We shall also look at what businesses in this region can do to rise above this challenge and stay profitable.
The Los Angeles CBD Market
When in June 2018 Governor Brown signed the Medicinal and Adult-Use Cannabis Regulation and Safety Act into law, it marked the beginning of a new era in the state of California. By January 2018, people started the legal cultivation of the plant because they were able to get legal rights from the state.
The medicinal and recreational use of the plant and its extracts was now allowed in the state. This obviously triggered the massive growth currently being experienced there today.
It has however not been all great news for the state. With the legalization and proper licensing of cultivators, the state also added two taxes. There was the cultivation tax on harvested plants and then a 15% tax on the purchase of the plant or products from the plant.
The obvious outcome is that these additional costs ultimately made the product expensive for a lot of people. This, in turn, resulted in a highly lucrative illegal trading of cannabis in the state.
In fact, a cannabis store owner reported that store owners in Los Angeles were experiencing declining sales because of the operations of illegal sellers. According to him, there were practically 10 illegal sellers for every licensed store. You can read about it here: https://www.latimes.com/california/story/2019-08-14/californias-biggest-legal-marijuana-market.
With the high taxes making the cheaper illegal products more attractive to a lot of users, genuine sellers in the area can only do two things. First, they can pray that the government cracks down on these illegal sellers and two, they can find ways to cut their overhead, slightly bring down their prices and possibly offer some additional value to their prospective buyers.
Overcoming the Challenges
In the section above, we took some time to talk about the challenges that CBD companies were facing in Los Angeles in particular and California as a state. While waiting for the intervention of the state’s and county’s security apparatus, these CBD companies can employ some innovative ideas to boost their sales. Above, we talked about finding ways to reduce costs as well as offering additional value.
Let’s look at a few ways through which the above can be achieved.
Reducing Overheads
There are a number of things that could add to a business’s overhead expenses. The top of this is advertising. By strategically making use of social media among other things, it is possible to reduce how much you spend on advertising, a cost you then transfer to your customers.
Properly using social media also means you can easily increase your patronage through really targeted marketing.
Offer Value-Added Services
One of the greatest commodities being sold today is convenience. Most times, people will prefer placing an order for an item online than physically going to shop for it in a store. Yes, we know that there are exceptions, but for items like CBD or its products, offering home delivery services from online booking is certainly something that will interest a lot of users or would-be users.
The above are just two simple suggestions that could help increase sales and profitability.
Why You Need the Right SEO Agency
The suggestions we gave above are obviously good but they come with their own unique challenges. How do you handle social media adverts effectively? How do you ensure you actually get people to visit your online store to place orders?
This is exactly why you need an SEO company. With the right search engine optimization company, not just social media, but other online assets can be mobilized to begin to work in your favor.
It takes know-how, strategy, and the right personnel to be able to pull off a well thought out SEO campaign. So, with proper SEO for CBD company in Los Angeles LA, they will experience a number of things which will include:
- Increased brand recognition.
- Increased traffic to their website.
- Higher conversion rate.
- More foot traffic to their physical outlet using local SEO.
- A larger chunk of the market share as they will tower above their competition.
If these look like some of the things you will want happening in your CBD company, then you most certainly need the right agency.
How to Ensure You Get the Best Agency
Anyone can claim to be or know anything but certainly, not everyone can do what they claim to be able to do. So given the above, how do you go about choosing the right SEO agency?
There are a few steps you could take to ascertain if the company you are considering can get the job done perfectly. We will briefly look at a few as we conclude this article.
- Ask for recommendations from folks that have worked with an SEO company they were impressed with.
- Check out the company’s website to feel it out. What you see and how it makes you feel may help you make a decision.
- Visit any other online real estate the agency may operate. A good example is something like this.
- If you do not get any recommendations, then search online for one.
- Check for online reviews to give you an idea of what their previous clients have to say about the work they do.
- Compare a number of options before making a decision.
- Have a discussion where they give you a brief idea of how they intend to get your task handled.
These points listed above and those not listed that you may think of will help you choose the right company for your SEO endeavors.
