Let’s be honest – as a cannabis operator or business owner you’re inundated with vendor solicitation. In just one week, you could hear from one to two different vendors for services you didn’t even know you wanted or needed. On top of one to two others, trying to get you to switch from what you currently have.
While some vendors are legit, there are others you should be wary of. So, how can you know which vendor traps cannabis tech companies are sneakily setting for you?
Keep reading to learn the top five most common cannabis technologies sales traps, and expert tips to help you avoid falling into them.
Weed Software and Tech Stacks – The Top 5 Vendor Traps to Avoid
Without further ado, let’s get into the most common vendor traps we see amongst cannabis tech company sales.
1: Predatory tactics in emerging markets
If you’re in a new market, be especially aware of being targeted by predatory sales tactics. Start-up companies in newly legalized regions are the most vulnerable to these tactics, and vendors know that. So, don’t get taken advantage of by taking your time to vet vendors properly before signing up.
2: Timeline troubles
Speaking of time – be sure you avoid rushing into any partnership, and stick to a timeline that works for you. Any vendor that’s pressuring you to buy pre-license, isn’t the vendor for you. Don’t get stuck paying more than you have to, and wait until 2-3 months before opening to start selecting cannabis software and tech stacks.
3: Upselling and cross-selling
Just because you use one company as your POS system for cannabis retail, doesn’t mean you have to buy into their other services. Or, their recommended vendor for a like-minded service, such as POS and payment processing. In today’s advanced landscape, many software and tech solutions integrate well together, so don’t be pressured into buying a lesser quality product, just because the same vendor offers it.
4: Too long, long-term contracts
Another trap that’s often used by predatory vendors is contracts that are simply too long. While any contract from six months – one year is considered normal, anything over that could have you locked in for longer than the solution works for your growing business. Avoid buy-out fees, and set up contract terms that allow you to re-evaluate and adjust when necessary.
5: Don’t jump on discounts
If a vendor is offering you a discount that ends ‘soon’ or by a certain date, don’t get pressured into buying. Those discounts are often available after the date they pressure you into signing up for. If you do happen to vet and prefer a vendor that has offered a previous discount, you can always take note of it and ask for it when you decide to sign a contract.
Avoid Vendor Traps with Expert Tips
At MJstack our mission is to see your brand succeed. So, to help you on your search for cannabis technologies, from cannabis POS software to seed to sales software and everything in between… here are our expert tips to help you avoid common vendor traps and red flags.
- Remember: you’re in the driver’s seat – Don’t let vendors rush you into a decision you’re not ready to make, just for the sake of a sale. Keep confidence knowing – they need you, more than you need them.
- Embrace change – If the cannabis tech company you select isn’t working out, don’t be afraid to explore switching vendors. It’s more important to find a solution that works for you, than sticking it out and losing overtime.
- Don’t buy on personality – Just because you really like the salesperson or cannabis tech company team, doesn’t mean they’ll be the best fit for your business when it comes to software or tech stacks. This also includes going with a company because you think their current clients or investors are cool (like those watching Jay-Z’s every move).
- Seek out tangible measurables – During the vetting process of cannabis software companies and vendors, don’t just take their “best in the business” claims. Request tangible measurables or results for proof, and to gauge expected results.
- Look at other markets – If you’re in a new or emerging market, look toward other legal markets to see the vendors’ success amongst more established businesses.
- Consult an expert – Put simply, don’t go it alone. Consultants, like MJstack, exist to serve cannabis start-ups and established brands to select a tech stack that maximizes efficiency, and cost-effectively.
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The Final Word – Finding the Right Cannabis Tech Companies
At the end of the day, your business is unique. But many cannabis tech companies simply don’t care. For some of the industry’s bad players, their end goal is to sign up as many customers, as quickly as they can. So, don’t let your company be the next one they take advantage of.
On the flip side, it is crucial to always be optimizing the way you work to increase your bottom line. So it’s just as crucial to know how to shop the types of cannabis software that can streamline your unique operational processes.
Need help selecting the right tech stack for you? Schedule a free consultation with the MJstack team, to begin better aligning your cannabis technologies for optimal success.
