The Heat Is On and We’re Cool With It – Adapting to the Increased Demands of Summer’s Hot Wholesale Cannabis Market

This summer has been quite the hot one, not only for the sweltering masses across the country, but for the wholesale cannabis industry as well. The Apex Trading team has been at the forefront of the country’s largest adult-use markets for years and summer is always busier for the cannabis industry. Reasons for the lift include increased consumer consumption, the race toward Croptober, etc. However, this year, demand in all markets was up significantly from years past. For example, the min/max/avg price per lb in Colorado (the oldest recreational market) listed on Apex Trading for July of 2018 was $400/$1,500/$976. In July of 2019, it was $875/$2,400/$1,309!

Causes for this year’s demand increase range from lapsing licenses to consolidation and pivots. A fair number of cultivation businesses let their licenses lapse this year. In newer markets, this is often the case because within the first 16-24 months, there is a flood of cultivators (think OK with its 3000+ licensees). This creates an oversupply in the market, ultimately driving prices down and making it more difficult for new, under-funded cultivators to stay above water without substantial capital. Another driving factor is outdoor growers enticed by the appeal of converting acreage away from cannabis for the booming, new hemp trade. Yet, as the earliest markets continue to mature, the cannabis cultivators that were able to perfect their craft while also building their brand are reaping the benefits.

With the need for retailers to lock down product for their eager consumers, cultivators have been selling out everything they can grow prior to their harvests. In response to these conditions, Apex Trading have developed new features to help both wholesale sellers and buyers get what they need.

One such feature is the Active/Inactive Inventory toggle – think pre-orders! Our proprietary software coupled with our nimble and responsive development team allowed us to quickly create the Active/Inactive Inventory toggle feature to meet the challenges of the ever-dynamic wholesale cannabis market. Sellers can now input inventory into the Apex Trading platform, but not make it visible for buyers to purchase through a seller’s storefront. However, a seller can still create orders on the buyer’s behalf, pull the products from their inactive inventory items, and receive accurate reporting data. This is a great way to systematically lock down inventory for buyers, giving them peace-of-mind that their shelves will be full when consumers coming knocking. At the same time, the seller knows where they stand with an accurate understanding of their inventory and orders in the pipeline.

At Apex Trading, we love this kind of work – responding quickly to challenges of the market and the needs of our clients. If you’re not already using Apex Trading to help simplify, streamline and save your licensed wholesale cannabis business money, set up a demo and see how we can help make your life easier and bottom line fatter.