Is Your Business Prepared for
the Federal Cannabis Rescheduling?
Schedule III Will Create Huge Opportunities
for Pre-Roll Manufacturers, as Long as They’re Ready for ‘Em
for Pre-Roll Manufacturers, as Long as They’re Ready for ‘Em
How the Federal Rescheduling Affects Pre-Roll Production
The rescheduling of cannabis at the federal level will likely cause a surge in demand for pre-rolls as access expands across the country. In this evolving market, businesses that rely on manual processes may struggle to keep up. A pre roll machine offers the efficiency needed to meet the growing consumer base without sacrificing quality.
With more consumers turning to pre-rolls for convenience, it’s critical for businesses to streamline production. We already see supply constraints in almost every market we look into with our Pre-roll Market Reports. As great as a hand-rolled joint is, manual rolling simply can’t meet these new demands. That’s where investing in automated pre-roll technology can give operators a competitive edge, helping them scale up production while maintaining consistency.
Say Hello To Greater Cash Flow
When cannabis is federally rescheduled, one of the greatest burdens on the legal industry will finally be lifted. Say goodbye to Internal Revenue Code 280E, and say hellooo to major tax savings.
This is an obvious win for any plant-touching cannabis business, but there is a flip side. With 280E gone, entry into and survival in the legal cannabis industry will become more accessible to more people. Competition will heat up.
Pre-roll businesses that want to survive an even more saturated market than they’re already operating in would be wise to put their 280E tax savings towards the greatest driver of sales a business has—marketing.
Get a better understanding of your target audience. Make your packaging more appealing to the eye. Increase your ad spend and online presence. Work on building and nurturing your audience so that when fresh competition arrives, you already have a loyal following to sustain and grow your business.
Improve Your Product Before It’s Replaced
Naturally, new competitors will bring new product ideas to the market, but new products will also pop up from a separate outside force. With cannabis moved to Schedule III, new opportunities will be available for legitimate cannabis research.
As it stands, getting federal approval to research cannabis is nearly impossible. Once it’s considered “more legal,” researching it will be more accessible. What we eventually learn could influence the products on the market, especially if we’re able to better determine how specific strains might affect specific people.
Pre-roll manufacturers keen on surviving the impact of the federal cannabis reschedule must focus on producing a clean, consistent product. Medical operators, in particular, should keep in mind that the FDA will now be involved in their business, and the FDA demands consistency.
Those currently producing stuffed cone pre-rolls should consider improving their product by rolling their pre-rolls instead. A rolled pre-roll burns more evenly, pulls more easily, and doesn’t hit as harshly as a stuffed cone does.
We’re not saying go out and hire a bunch of hand-rollers with your tax savings. We’re talking about incorporating the BlackBird into your pre-roll operation. The BlackBird is the industry’s first and only automatic pre-roll rolling machine. It guarantees a consistent product in a way cone-stuffing machines can’t, simply by design. Where cone-stuffing machines compact the flower on one end and create a pre-roll that canoes and burns hot, the BlackBird offers an evenly packed joint every. single. time.
The BlackBird not only promises consistency, it promises a better pull than any stuffed cone on the market. That’s how you take on the new products and competition headed your way, and that’s how you keep your customers coming back for more.
(Bonus: When 280E is lifted, you can start depreciating your BlackBird for tax purposes. 😉)
Get Ready for a New Canna-Curious Crowd
When the plant is federally rescheduled, the industry should be ready for new customers who may have been holding out on weed until its federal status was updated. These folks will be looking for a brand and product that speaks to them.
Putting your 280E tax savings towards boosting your marketing efforts and improving your pre-roll product line is crucial to securing these new customers. The market is and will be so saturated, customers truly have no reason to give any brand a second chance. You must hook them on the first buy.
The Role of Pre-Roll Machines in Meeting Demand
To stay ahead of this surge in demand, businesses are turning to automated pre roll machines. These machines handle the bulk of the work, allowing companies to quickly and efficiently produce pre-rolls at scale. Systems vary, but using a fully automated pre roll machine further enhances this process by eliminating human error and maximizing production speed.
The use of pre roll machines in the cannabis industry allows businesses to expand their product offerings while improving overall output. By automating their pre-roll processes, companies can meet market demand without sacrificing quality or consistency—two key factors for consumer satisfaction.
Start Preparing For Schedule III Now
280E hasn’t been lifted yet, but there is still plenty you can do to prepare.
If you don’t already have an email and/or text list, start building one. Add an opt-in option to your website and start encouraging people to sign up through your other outlets like social media platforms and in-store advertisements. You can start growing and nurturing your audience now.
Make friends with your retailers’ budtenders. Budtenders are your sales team. They can convince a customer to buy—or not buy—your pre-roll, and oftentimes they base their choice on their personal experiences with you and your product. Get to know them. Incentivise them. The more they know you, the more likely they are to support your brand and push your pre-roll over a newcomer’s.
And for those truly committed to the cannabis industry long-term, start working out how the BlackBird fits into your operation. Even if you have to hold on purchasing until those tax savings kick in, you can still figure out where the machine(s) will live on-site and how operating it will fit into your SOPs. You can also review your current sales and sales projections to determine how many machines you may need. (One churns out about 900 pre-rolls per hour.)
If you have questions about the BlackBird or the opportunities that await the pre-roll industry come federal cannabis reschedule, let’s chat. We’re currently helping brands prep for the reschedule and would love to share the wealth. That’s just how we roll.
