What Did We Learn from The First Weekend of Recreational Marijuana Sales?

Tuesday, October 06, 2015

Brendan Murray, GoLocalPDX Contributor

Recreational marijuana sales kicked off in Oregon last week, and industry insiders told GoLocal that there was plenty to be learned from the first days of cannabis sales to the public.

“The biggest surprise to me is that it’s really becoming normalized,” Leah Maurer, Co-Chair of the Portland Women’s Grow chapter, told GoLocal. “It isn’t just your stereotypical marijuana smoker. There’s older buyers, people who fall into the ‘soccer mom’ category, really just any type of adult in the area."

SEE SLIDES BELOW: See the 10 Things We Learned from The First Weekend of Recreational Marijuana Sales

Fast Sales, Slower Profits

One surprise was just how many people showed up to buy marijuana on its first days as a legal product. Brad Zusman, owner of Canna Daddy’s dispensary on SE Division in Portland, told GoLocal he saw a big uptick in the number of patients at the dispensary.

Typically, he said, an average of 120 to 150 customers will visit his store on weekdays, with the average rising to 200 on weekends. 747 customers made purchases on Thursday, the first day of recreational sales, and nearly 2,000 more customers bought cannabis throughout the weekend, more than double the amount of customers Zusman and his staff typically see.

Aviv Hadar, owner of Oregrown Dispensary in Bend, told GoLocal that his shop saw more than 55,000 patients on the first day of sales. Many of their customers came not from Oregon, but from California and other states where marijuana is still illegal.

Maurer, of Women’s Grow, said she thinks part of marijuana’s immense popularity has been its new status as a legal and socially acceptable product.

“When you can do something that you’ve wanted to do for a long time, but it’s been illegal, it’s a very liberating feeling,” Maurer said. “There’s been a real cheer and excitement in the air as this has kicked off. People are realizing it’s no different than purchasing beer or alcohol.”

Despite the increase in customers served, Zusman said sales did not grow at the same rate, which surprised and disappointed many dispensary owners, if not Zusman himself.

“On average, a medical customer spend between $90 and $110 per visit, but recreational customers have only spent $40 to $45 on average,” Zusman said. “A lot of people didn’t expect that, and I think it could really hurt some businesses.”

Growers Behaving Badly

Jonathan Modie, spokesman for the Oregon Health Authority, which is in charge of early sales of recreational marijuana, said he was surprised by dispensaries that disregarded some of the rules regarding recreational sales.

Modie said some merchants did not have proper signs in their stores, including signage that indicates recreational marijuana is only for those more than 21-years-old. He also said that a few dispensaries have broken a much more important rule.

“We saw some dispensaries giving out free product, which is not allowed,” Modie said. “One dispensary even was giving away product that is not allowed to be sold to recreational customers.”

Modie said that the OHA would be expanding their team of inspectors from just two inspectors to more than a dozen, aimed at enforcing rules surrounding recreational sales throughout the state.

A Change in Philosophy

Hadar, of Oregrown Dispensary, said that one of the biggest changes he and his staff have had to deal with is the difference in how cannabis is used.

“People used to be patients, now they are customers,” Hadar said. “We ask them what they want to experience while they consume marijuana. Do you want to be more active and stimulated or more relaxed? We’re not longer asking them about medical ailments.”

Hadar also said a big change has come in the types of questions he hears from his customers.

“Since we started recreational sales a lot of people have been asking what we do with their information,” Hadar said, referring to the information—including a customer’s birthday and how much he or she bought, but not the customer's name—that dispensaries must record with each purpose. “There’s no list you go on, although people have the idea that there is. It’s just a record that a recreational sale was made."

They Want More

Maurer said she was surprised by the broad palettes displayed by new users. She said many asked about alternative forms of marijuana that are not yet available for recreational sale, such as concentrates and edibles. Right now, only dry plant materials, seeds and plants can be purchased.

“People are coming in and asking ‘what’s this’, or ‘what’s that’ or how do I use it,” Maurer said. “Most are very curious about concentrates, which they’ve probably never seen before, or edibles, which I didn’t really expect.”

Zusman agreed. He said that once products such as edibles and concentrates are recreationally available, average sales to recreational customers will be more similar to those of medical customers.

“People are looking to buy edibles and concentrates, things like that, and, right now, they can’t,” Zusman said. “When those products become available for the general public I think you’ll see a much larger boost in sales.”

Related Slideshow: 10 Things We Learned from The First Weekend of Recreational Marijuana Sales

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It’s Already Popular

Many dispensaries reported large increases in sales during the first week of recreational purchases in Oregon. At many stores, doors opened for recreational purchases at 12:01 a.m. and customers lined up around the block.

Photo: Customers lined up outside of Oregrown in Bend on October 1, the first day of recreational marijuana sales in Oregon. via Oregrown's Facebook page.

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Not Just Stoners and Slackers

Leah Maurer, co-chair of Portland’s Women Grow chapter, said she was surprised by the diversity of cannabis consumers. “It isn’t just your stereotypical marijuana smoker. There’s older buyers, people who fall into the ‘soccer mom’ category, really just any type of adult in the area."

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They Want More

Maurer said she was also surprised by the adventurous tastes of some first-time buyers. “People are coming in and asking ‘what’s this’, or ‘what’s that’ or how do I use it,” Maurer said. “Most are very curious about concentrates, which they’ve probably never seen before, or edibles, which I didn’t really expect.”

Photo: A marijuana-infused cookie via Wikimedia Commons

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No Pot on Campus

Despite the new law, Oregon’s college and university students will still not be allowed to smoke marijuana on their campus, including from within the privacy of their own dorms.

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Welcome to Oregon

Some of the first recreational marijuana customers in the state were not Oregonians. According to Aviv Hadar, owner of Oregrown Dispensary, customers from California, where marijuana its still only available on a medical basis, Washington, and from states as far as Florida have come to the Beaver State to try the newly legal product.

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Fast Sales, Slow Profits

Despite eager customers, sales have not increased at a rapid rate. Brad Zusman, owner of Canna Daddy’s dispensary on SE Division, said that recreational customers are only spending half of what medical customers typically spend on a visit.

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What Are You Doing With My Info?

Hadar said that most frequent, and surprising, question from customers regarded what dispensaries do with check-in info they are required to collect from customers. “There’s no list you go on, although people have the idea that there is,” Hadar said. “It’s really just a record that a recreational sale was made."

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What Do You Want to Do?

Hadar said that since the transition from medical sales to recreational, the strategy for helping customers have changed. Now, rather than asking what has been ailing customers, Hadar and his staff ask them what they are looking to experience or do while consuming marijuana.

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Sellers Behaving Badly

Jonathan Modie, a spokesman for the Oregon Health Authority, which is in charge of early sales of recreational marijuana, said he was surprised by dispensaries that disregarded some of the rules regarding recreational sales. Some dispensaries, he said, did not have proper signage posted in the stores, while other gave away free product, which is against regulations.

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More Inspectors Coming

Dispensaries that are bending the recreational sales rules should be careful. Modie said the OHA is expanding their team of inspectors from just two inspectors to more than a dozen, aimed at enforcing rules surrounding recreational sales throughout the state.