(This is an abridged version of a story that appears in the August issue of Marijuana Business Magazine.)
Medical and recreational cannabis retail stores near state borders have tremendous business opportunities.
They’re able to draw the interest of cannabis consumers in adjacent states that might prohibit the drug and can also benefit from reciprocity laws that allow medical marijuana patients from other states to make purchases, said Nic Easley, who advises MJ businesses across the United States and is CEO of 3C Consulting in Colorado.
Cannabis retailers in adjacent states with recreational marijuana programs – think Washington and Oregon and Oregon and California – can even win out-of-state consumers if their state has lower tax rates or costs, according to Easley.
But there’s a catch, he pointed out.
It’s illegal for consumers to carry cannabis products across state borders, which means marijuana retailers must obey local laws and educate their customers about the rules.
“Something all operators need to get behind is an education campaign – and not just for a business strategy,” Easley said.
“It’s a no-brainer: You don’t want to set consumers up for failure.”
Easley and other cannabis stakeholders spoke with Marijuana Business Magazine about what MJ retailers near state lines need to consider when doing business with out-of-state consumers: