Matthew: Hi, I’m Matthew Kind. Every Monday and Wednesday look for a fresh episode where I’ll take you behind the scenes and interview the leaders of the rapidly evolving cannabis industry. Learn more at www(dot)cannainsider(dot)com. That’s www(dot)cannainsider(dot)com. Do you know that feeling when you sense opportunity, when you see something before most people and you just know it will be successful, then you're ready. Ready for CannaInsider Consulting. Learn more at www(dot)canninsider(dot)com/consulting. Now here's your program.
Every good sailor knows that when you’re charting a course from New York to England if your bearings are off even the slightest bit you could end up in France or Spain. One slight adjustment on your trajectory could have a massive impact. The same idea of knowing where you are and where you are going can be applied to early and cannabis businesses. One slight miscalculation on the type of product you offer to cannabis consumers could spell success or failure. That is why I’ve invited Roy Bingham, Founder and CEO of BDS Analytics back on CannaInsider. Roy is going to share with us some insights he’s discovered from the point of sale data at dispensaries in both mature and emerging cannabis markets in the United States. Welcome back to CannaInsider Roy.
Roy: Thank you very much. It’s really a pleasure to be here Matthew.
Matthew: Roy to give us a sense of geography can you tell us where you are in the world today?
Roy: Yeah. Today I’m in Boulder, Colorado. If you’d asked me two days ago I would have been in Rhode Island.
Matthew: Okay and Roy you’ve been on CannaInsider in the past but for new listeners that are just joining us can you give us a little background on your career and why you got into the cannabis industry?
Roy: Yeah I’d be pleased too. So I grew up in the UK and worked in the banking field in the 80s and 90s and then I came to the United States and went to Harvard Business School in 1993. Worked for McKinsey the big consulting firm and then formed my own consulting in mergers and acquisitions advisory firm called Health Business Partners and we focused on the health and wellness industry especially anything that you could buy in a Whole Foods Market for example. One of the things that we did at Health Business Partners was we invested in a company called Spins. This is way back. This is about eighteen years ago and Spins became the dominant provider of data analytics to the health food industry. They worked with Whole Foods Market, dozens of independent retailers, and retail chains in order to gather data about which products and brands were selling, which categories of products you should carry in your store. So that was my introduction to the modern world of data analytics.
Later in my career I became head of sales and marketing at a digestive care company where we did dietary supplements like probiotics and fish oil and I became a major consumer of Spins data at that time. In fact the year I joined the company it launched thirty-six new products of which five were successful and of course that was basically throwing an awful lot of stuff at the wool without a lot of data to determine which we should focus on. Seven years later when I left the company we had incorporated data into our entire product development process and we launched six new products in that year of which five were very successful, ten times as successful as those previously.
So we grew that business from 40 million dollars to 100 million dollars and a major part of that success was our use of data analytics in order to figure out which market categories to pursue and which characteristics of the products and what the competitive environment would be. So that got me into data analytics and about three years ago I paid some attention to the cannabis industry and with Mark Nottoli who is one of the Co-Founders of Canopy Boulder and I actually reintroduced him to Patrick Ray the other, one of the other Co-Founders of Canopy Boulder and they raised the fund and started the Canopy Boulder Accelerator and low and behold they called me fairly soon after they had the capital lined up and they said would you like to start a Spins like business for the cannabis industry.
Which was of course very intriguing because of the growth of the industry and my background in the health and wellness space had quite a lot in common with the growing cannabis industry and then the other big thing that Canopy Boulder did for me is they introduced me to my co-founder who enabled us to get a tremendously rapid start on this business. My Co-Founder is Liz Stahura who was the Head of Sales or Head of Business Development at Leisure Trends which does what BDS Analytics now does for the cannabis industry for the biking and outdoor industry. So we’re basically converging our expertise through the natural products industry with Spins and the biking and outdoor industry with Leisure Trends to create BDS Analytics.
Matthew: Wow. Yes I’ve definitely heard of Spins and BDS is doing something similar here so it’s point of sale data at dispensaries.
Matthew: And when you compare Spins to BDS I mean these are similar offerings but in different spaces, one’s in cannabis and one’s in kind of a more Whole Foods environment. How would you compare and contrast the two?
Roy: Yeah well going back sort of eighteen years ago to the emergence of what is now the natural foods industry it was really a lot of independent stores rather like the independent dispensaries that we see today. Emerging small chains of stores and in fact when we started working with Whole Foods Market they had eighteen stores and so they were emerging majors already and who knows who may already have seen the Whole Foods of the cannabis industry being created in Colorado or Washington or California or Oregon perhaps. So there are similarities in terms of the maturity stage of the retail side of the industry.
I think the other thing is that in terms of similarities is that this is a business that is consumer driven and has inconsistent supply. If you remember back if you were around eighteen years ago natural and organic foods for example were patchy in supply. They started off with people literally bringing grocery products straight from the organic farms into those health food stores. Then gradually developed packaged goods concepts that looked pretty much like someone threw something in a cardboard box with very little branding and labeling and that sort of where we have been until very recently in the cannabis industry as well.
We did see and through Spins the very rapid emergence of new products, new categories, new brands, and we’re seeing that of course in cannabis as well and companies differentiating themselves by their positioning with regard to topics like organic, better grown, social responsibility, etc. Now there are of course a lot of differences between the health food industry and the cannabis industry. Of course we have different state by state regulation here in cannabis which means for us for example we have to have state by state data collection and state by state data organization which we didn’t have to do in the natural foods industry and then of course we’ve got the distinct markets of the medical and adult use market and again we have to categorize and organize and collect our data separately for those two markets as well and to be fair the natural products industry didn’t have the tax and banking issues that companies in the cannabis industry face. But of course we’re seeing in cannabis even faster growth than we saw in natural foods so many differences and similarities.
Matthew: And tell us a little bit about your clients and who you serve because on one side you have paying customers that want access to your research at BDS and then you also have your dispensaries too. How do you, do the dispensaries provide the data for free and they get something in return? Is that how it works?
Roy: Yeah. The dispensaries are really our partners and they have a free or very low cost service from us. So they sign an agreement with us which says they will provide data and in return they get the full service, the service that to a brand or grower would be worth tens of thousands of dollars. The dispensaries get as part of that agreement which means that they can analyze not only their own sales patterns organized by categories, sub-categories, brands, etc. but they can also compare their own performance to the market and therefore make decisions about how to change. The big thing for us with dispensaries is actionable data. Nobody wants analysis, paralysis, and getting lost in piles of information. You want to be able to make three quick decisions that day about different categories to feature more of or different brands or items to bring into your store or maybe to phase out of your store.
So that’s where we are with the dispensaries and then our paying clients are the brands, the growers, the MIPs, and they can be either mature businesses that are already the market leaders or the fast growing or companies choosing to enter the space who are trying to figure out how to differentiate themselves, which products to develop, which marketing campaigns, what pricing strategies, and they can use our data to figure that out. What we see with brands, growers, and MIPs is many of them recently the larger ones or the innovators have brought in management who’ve worked with data in other industries so they’re used to working with data in food, drug, mass from companies like IRI, Neilson, or in the health foods business with Spins or Leisure Trends for example.
And then they came into this industry and there was very little data. They’re usually very relieved to discover that we exist and that we have this data already because it means they’re not making decisions by gut feel. Then of course we also have those brands, growers, and MIPs that are run by entrepreneurs who haven’t had that same experience with data in the past but they realize that data is the key to developing a successful business.
Matthew: And when you say it’s the key why do you think that? I mean what’s the mistake people make if they don’t have the data and insight they have if they do?
Roy: Yes. Well I think the first thing I always think about if you’re developing a new line of products is is the category a large enough category that suppose you get 5, 10, 15, 20% of that category you achieve your business goals. The second one is is that category growing rapidly enough that once you’ve been established in that category you can be assured of success if you maintain your market share and the third one is how competitive is that category and that is a matter of understanding who the other players are in that category, what their pricing structure is, and how that compares and what your value proposition will be for the consumers and your retail customers.
So otherwise if you’re just developing products by gut feel without access to that data sometimes you’ll get it right because people’s gut feel can be highly developed but sometimes you’ll develop a product for a tiny niche that isn’t going to grow and put the same amount of investment into that as if you’d entered a big and successful and fast growing category.
Matthew: Right. So I hear what you’re saying there. A deep market is important but if it’s just so competitive that’s something to look at but maybe a deep market that’s still got room to grow where if you just bite off 10% you’re really doing well. So I can see what you mean. Roy last time you were on the show about a year ago data was just starting to trickle in and now it’s been close to a year and you have more data and more information. Is there any insights or aha moments you’ve had since the data has started to come in?
Roy: Oh my goodness yeah. We’ve had hundreds of aha moments. It’s very exciting. We’ve now received from our dispensary partners in Colorado millions of transactions and the first thing we have to do with that is normalize all the data because it comes in with all kinds of different description. There are no standardized SKU codes etc. So we normalize it which means we figure out which description applies to which product. We categorize all that data into 80 categories and subcategories because at that point it starts to make some sense and at the very high level, the highest level categories if you like a flower, edibles, and concentrates. So the first thing we learned is that in 2015 and I don’t think anybody knew this until we did it. Based on revenue flower was 63% of sales in Colorado, edibles were 12% of sales, and concentrates 20% of sales.
Roy: And I think that is quite different from what a lot of people expected I think edibles or less than quite a lot of people expected.
Matthew: Yeah for sure.
Roy: So that’s the first level of fascinating facts and I could go on and on about what we’ve learned within those categories as well. If you’d like me to I could talk a little bit about the different genus types within the flower category and we can see we’ve divided them between sativa, indica, and hybrid. Hybrid is the largest category. Sativa and indica in Colorado are very similar and then we also have more than 3,000 different strains in our database and in Q4 of last year Durban Poison took Blue Dream to become the number one strain in Colorado.
Roy: The top ten strains in Colorado represent about 20% of overall flower sales and as I said Durban Poison is number one, second is Blue Dream, third is Sour Diesel, etc. so fascinating insight there. Then within the concentrates and extracts which is the fastest growing category in 2015 we dive into which are the most important categories there. In Colorado Shatter was 28% of that category. I have to say Shatter in every interview by the way. People like it when I say Shatter apparently.
Matthew: I do too. I’m in that camp.
Roy: I can’t figure it out myself. Then prefilled cartridges were the fastest growing and they are now 23% of the concentrates category with wax and butter following close behind. Then when we look at that third category edibles which represent 12% of revenues people are always very interested in the breakdown there and candy represents 44% and chocolates are the second category at 19% while infused foods are 12% and beverages were 6% last year. So that’s an idea of the kind of middle level data and then we can break candy down into hard candy and gummies for example and then of course we get to look at the brands and individual items as well and subscribers to our service will be able to see the growth for those detail as well.
Matthew: Wow that is amazing. So I would not have guessed that popularity of strains and I would have not guessed either that candies do so well. I mean I do see like the gummy bear, infused gummy bears those seem to sell really well but I would not have guessed the candies. That’s very interesting but I guess that they’re so discrete that a lot of people like that. So that’s some good information there and I can see why that’s really powerful for your clients. Do you see any clients using the data better than others because if you have this service here and you provide this wealth of actionable data as you were mentioning it should be actionable but then some people use it let’s say optimally and some people don’t. How do you feel about that? How can you use the data in an optimal way?
Roy: Thank you, you nailed it. So we put a tremendous amount of work into making the data as user friendly as possible but it still takes a significant amount of time and you have to be statistically oriented, a bit of a nerd in order to start to get excited about the data. Now most management teams these days have a few wonks like me who are fascinated with data but some do not. We therefore deliver our information through a portal that our clients can log into and it starts off pretty high level. So they can just go in and they can look at overall growth trends by market. Then they can look at the categories and then focus in on the categories of interest and among dispensaries I talked to a dispensary ([19:34] unclear) client the other day and they said well we’re not starting to use it consistently to help us with crunching decisions and they said that they had adjusted their flower prices based upon the information about the market overall and they say that they were a little out of line and he commented that they had seen a 35% increase in revenue when they adjusted their flower prices. This was just a couple of weeks ago.
Roy: So it’s very exciting to us to hear from a dispensary, very sophisticated dispensary chain that’s making actual decisions based on the data and then brands and growers we were just meeting with a new client a couple of days ago and they’re in the process of deciding which categories of products to launch next. They are in ingestible and concentrates and extracts markets. So they were very interested in the size of those subcategories in the competitive environment as we discussed and the growth characteristics and based upon this data they now are developing new products to attack three or four of those particular market opportunities that they like and that was a team that had used data extensively in other industries before coming to the cannabis industry as I mentioned before. So they were thrilled not to be making decisions based on gut feelings and in that case there is one person within the company who is a power user if you like who’s received considerable training and is just very excited about spending perhaps 20% of her time focusing on this data in order to educate the rest of the management team and in order to develop new products and marketing strategies.
Matthew: So if you have an edibles company or you have a candy or a drink or something and you’re having a hard time breaking into a dispensary is it pretty common place to say hey let’s look at the BDS data and see what your competitors are doing?
Roy: Yeah that’s probably the primary initial use of our data. So our clients can produce a chart which shows using GreenEdge our database and they can show how they rank either by overall sales or by growth in sales or both and that usually if they drill into a category or subcategory or even a sub-subcategory they can come up with one in which they’re performing well and then they take that with them as part of their initial pitch. It’s very often the very first or second slide that you show to a dispensary. It says look at us. You don’t have to just take our word for it here’s GreenEdge data to confirm that we are an important player in this market and that our products do very well and that you should feature them in the stores and the good news there is because many of the chains and dispensaries are also providing data to BDS Analytics they are familiar with it. They know that its independent third party data based on actual points of sale transactions and not something that the vendor has cooked up.
Matthew: Yeah. This is so helpful, such great information. Now you can follow the data and the insights you get from GreenEdge. It doesn’t guarantee success but it gives you a lot of competitive advantage. You still need a good brand, you still need a good product so do you see some companies execute on the same market category as another but just do a lot better. For example let’s say they have a small drink or shot or a hard lemonade or something infused with cannabis and you see one company execute on that really well and another company doesn’t and essentially they’re going after the same market category but when it came down to execution, focus, branding, and messaging one does a much better job.
Roy: Oh yes I mean of course the strategic decisions are really important but what you do on an execution day after day after day determines whether or not your strategy is successful and you get a feel for that. Obviously there are some companies that philosophically are much stronger when it comes to growing and producing and that’s off in the background of the founders of the companies and there are others that are much more sales and marketing oriented and have a particular strength in that area. So obviously if you’re a sales and marketing expert you still have to make a great product. If you’re a great producer, grower, product developer you still have to have competence in sales and marketing in order to succeed and you have to go out and execute day after day after day.
Now of course what’s going on here is such rapid growth so the rising tide really is currently lifting all boats and even if you’re not executing brilliantly you should still be growing at the moment at 20, 30, 40% a year but the people who are doing everything really well are growing at more than 100% a year at the present time.
Matthew: Yeah and I’ve definitely heard of popular edibles and drinks being sold out at dispensaries for weeks or even months at a time. So you can see that happening so good insights there.
Roy: Yes. Well to get the right product, position it well, target the consumer well, and have the right advertising and pricing strategy and you will succeed in this market for the present time.
Roy: Some day one or two or three years from now it’s going to be a lot more competitive and you might get all of those things right but if you don’t have the right financial or other resources you may still not quite breakthrough.
Matthew: When you say that you’re starting to see cannabis companies have someone that’s like yourself, like a wonk that is studying and digesting data and trying to make insights with it does this tend to be the larger companies and what’s their title? What do they typically call themselves? Who’s the person in the organization that’s doing this?
Roy: Well the industry doesn’t really have large companies yet let’s face it. A large company would have 200 employees for the cannabis industry. And in other industries that would be 20,000 employees.
Matthew: Right, right.
Roy: So you have people who are wearing multiple hats. So sometimes the wonk, the data oriented person is the CEO. Sometimes it’s the Chief Marketing Officer. Sometimes it’s the Head of Manufacturing or Production. Sometimes it’s a more ([26:56] unclear) person in the marketing organization who is really into data and wants to educate the rest of their team about market trends. So we’re seeing all of the above really but often the greatest interest is shown by the people at the very top of the organization who have been making decisions based on their own instinct, intuition, and bits of data that they can pick up along the way and now they’re suddenly very reassured that they can validate their instincts. It’s not like we take away and make the decisions for them with this data. They can validate their own instincts about which types of products to pursue or which marketing campaigns to develop.
Matthew: Outside of Colorado are there any other states that you’ve started to get data on at dispensaries?
Roy: Oh yes, yes. We have very extensive data on the Washington market now and we’re developing our dispensary panel in Oregon and will have comprehensive data on the Oregon market within about two months of now and then we’re receiving a lot of inbound inquiries from Arizona, Nevada, California, Maryland, Massachusetts and so we will gradually be expanding into those states. The first step for us of course is to partner with sufficient dispensaries in order that our data is accurate and that’s a process that can take anything from a few weeks to several months depending upon how big the market opportunity is.
Matthew: Right and can you mention how many dispensaries you need to get kind of the critical mass because you don’t need them all but you need a significant data set. So can you talk about that a little bit?
Roy: Yes. Well it has some similarities to the presidential polling. You do not need to have 100% of the poll to know who’s going to be the next president and in fact those polls are usually based on a very tiny, tiny percentage of potential voters you know .01% statistically can apparently be accurate. Now in the markets that we’re focused on back in the health food store industry and the biking and outdoor we were looking for more than 10% of the data so more than 10% of the sales in that market and in cannabis because it’s growing so rapidly we’re looking at higher levels in that as our goals perhaps 15 to 20% but also provided that the data is sufficiently diverse. If for example in Colorado is all concentrated in one city like Denver that would not give us an accurate enough panel of what’s going on in the entire state and similarly if it was all focused on a limited number of chains of stores then the data would be skewed as well. So we incorporate different geographical locations as well as individual stores, small, medium, and large chains of stores in order to get to the diverse panel that we need for accuracy.
Matthew: And what are some of the data insights you’re starting to get out of Washington?
Roy: Yeah Washington has been fascinating. It’s a smaller market than Colorado about 240 million in the adult use market in 2015 but it of course got going six months after Colorado and in fact in a way it was nine to twelve months behind because of supply shortages initially. That said the Washington market last year grew faster than the Colorado market and when you look at the population and the growth trends there may come a point in the next twelve months, twelve to twenty-four months where Washington is actually a bigger market than Colorado even though Colorado was 996 million last year.
Roy: So that’s the first insight is about the scale of the market. Another one the people in the Washington market will be familiar with is the price trend both on flower and actually on almost all the products. Prices were very high when the adult use market started in July of 2014 and have declined very strongly down to levels that are comparable or in fact even a little lower than Colorado over the last eighteen months and at the same time of course unit sales grew dramatically. If you look at September 2014 to September 2015 unit sales were up 18 fold, 18 times increase in unit sales. Another insight that we’ve learned again going back to the master category level I talked about before is flower in 2015 was 69% of total Washington dispensary sales with concentrates being 15% and ingestibles being 10%.
Unlike Colorado Blue Dream remained the number one strain with Cherry OG and Dutch Treat numbers two and three and so this is just an example of some of the insight. We also have some very interesting comparisons. I expect people might be interested in what else is different.
Roy: Between Washington and Colorado in terms of those category sales. So as I mentioned flower is 69% in Washington. As I said earlier it’s 63% in Colorado. The biggest difference is actually that concentrates and extracts in Washington at about 15% whereas in Colorado they were 20% and we think that’s an indication of the more maturity the nine to twelve month head start in a way that Colorado received on adult use sales versus Washington and then ingestibles are a little bit lower in Washington at 10% versus the 12% in Colorado and then within flower it’s very interesting to see that sativa is more popular in Colorado than it is in Washington. Indica is about the same and hybrids are a little bit lower in Colorado than Washington so maybe that’s something to do with people in Colorado looking for that energizing effect and in Washington it’s more about chilling on the couch. Who know as to why that’s the case?
Roy: And in fact what we found there’s very little correlation between the top strains in Washington and the top strains in Colorado. Blue Dream is up there at or near the very top of the list but apart from that there is very little overlap the two markets are clearly differently in terms of strain popularity and then when we look within the concentrates and extracts area there are substantial differences. Prefilled cartridges are much more important in Washington. They’re at 36% of that category, only 23% in Colorado and 19% is wax in Colorado that’s only 13% in Washington. So important and subtle differences there. There’s a category in Colorado called butter which is about 10% of sales in Colorado and it’s almost nonexistent in Washington.
So key differences there and then when we look at the other the third master category the edibles as I mentioned Colorado has 44% in candy but Washington is only 27%. Washington doesn’t allow gummies so that might be one of the reasons. Infused foods in Washington are much bigger there’s 23% so that’s your brownies, baked goods, etc. whereas in Colorado it’s only 12% and another big difference is that tinctures are much bigger in Washington at 18% of that category. There are only 6% of the category in Colorado. So some significant differences emerging from the data and of course the brands are almost totally different and we’re now beginning to see the emergence of brands who’ve made partnerships in both states and are moving into national branding campaigns and so some of those are beginning to show up in both Colorado and Washington and we expect significant growth from some of those brands because of the products that they have and the resources that they’re bringing to there and so eventually one would expect to see more similarities within the brands and item levels between the states.
Matthew: Very interesting especially the butter category not existing at all in Washington. That’s a pretty big difference.
Roy: Yeah. Of course it might be partly terminology because there’s a sort of spectrum of these products. It might be that just the term butter is not popular in Washington or it’s just that that particular product category has not caught on with the consumers or with the dispensaries but it certainly sounds like a bit of an opportunity doesn’t it if you’re a producer or a dispensary in Washington. Maybe you could target creating that category and maybe that could be your focus.
Matthew: Yes I agree. Well Roy.
Roy: I also think on the tinctures that we talked about the fact that it’s much more popular in Washington than in Colorado that sounds like an opportunity as well and I know there are some regulatory differences in Colorado which may make it a little harder to get into the tinctures business but once you’re in it it sounds like a significant consumer demander.
Matthew: It’s really interesting to see because in my mind I’m thinking well Washington is maybe a little bit behind Colorado but now it’s really coming into its own and the preference is there is somewhat of a regional difference and it’s interesting to hear and see why. I mean tinctures, butter I imagine as we get into more topicals and things like that they’ll be differences as well based on geography and just different tastes in different regions. So that is fascinating. I love this stuff. I could talk about it all day especially if you’re considering launching a cannabis product. I mean this is a massive area of focus and getting the branding right but also developing samples and getting feedback from the demographic you are going after.
Roy: Yes. Well I could certainly talk about it all day because that’s a year’s development and over a million dollars to get to the point where I could be giving this sort of information to you and the much more detailed information on the brands and items to our clients and so I’m of course completely pumped about being able to share this at this point.
Matthew: Yeah it takes money to get to this point and you’ve raised money. Are you still raising money or is the round closed or where are you at right now for investors that are interested?
Roy: Yeah we closed that funding round last summer actually and we’re now evaluating our needs going forward and our expansion plans and might consider another round in the future.
Matthew: If there’s anybody that’s listening that wants to be on a list or be a candidate to be an investor is there a way that they should reach out to you or to BDS in general?
Roy: Yeah actually for everyone who’s listening if you go to our website www.bdsanalytics.com written just the way it sounds that’s b-d-s-analytics.com you’ll see that there are a number of places where you can submit your email and your interest or feel free to email me email@example.com and I’ll be pleased to strike up a dialogue and that’s for anyone who’s a dispensary partner or client, a potential investor, or media people are fascinated by the data in the industry as well. We spend quite a bit of time with them.
Matthew: How about if they just want to hear you say the word shatter. Can they email you with that or call you with it and get that?
Roy: Well it’s hard to answer a question like that with an email. Apparently it doesn’t quite work when I type shatter. I actually have to say it.
Matthew: Well turning to a more personal question Roy something new I’m trying is is there a book when you look back over your life that has had a big impact that you would suggest readers take a look at? Can you tell us a little bit about that if there is one?
Roy: ([40:43] unclear) question. Yeah actually two or three come to mind. I hope I don’t ramble too much but when I was at Harvard Business School one of my professors that had the most impact on me was a guy called Clayton Christensen and Clayton then wrote a book called “The Innovator’s Dilemma.” It’s quite old it came out in 1997 and it was based upon case studies that we did in his class and it’s absolutely fascinating about how disruptive technologies change industries and how very often it’s not the embedded major players in the industry that recognize the value of the disruption. They are actually the ones who get disrupted.
Matthew: Right, right.
Roy: And he has some fascinating examples from technology but also from healthcare for example. Another book I’d like to recommend and this is kind of pure selfishness really is a book called “Philanthrocapitalism.” It’s by two guys called Matthew Bishop and Mike Green. Matthew Bishop is a Senior Editor at “The Economist” for a very long time and he is my oldest and lifelong friend and they wrote a fantastic book called “Philanthrocapitalism” about how the very rich can change the world through applying their cash and their capitalist experiences into the world of philanthropy and then of course let’s not neglect the classics. I’ve recently had the opportunity because my sons are 12 and 14 and there was a phase before they were in video games that they used to actually read. Of course that’s gone now sadly and so books like “Robinson Crusoe,” “Swiss Family Robinson,” and “Gulliver’s Travels” and one of my favorites if you want to know anything about patience “The Count of Monte Cristo.”
Matthew: Oh yeah great one and revenge right.
Roy: Just a few suggestions. Learn, get smart, and be patient that’s part of the message of “The Count of Monte Cristo.”
Matthew: Great book recommendations there Roy. Going back to “The Innovator’s Dilemma” we really live in kind of a golden era of this. I mean we see the taxi cab industry get totally decimated by Uber. In fact I was listening yesterday to I can’t remember what city it was but they said a taxi medallion just a few years back used to cost like 800,000 dollars on average in whatever city this was and now it’s worth about 60,000 because Uber has just totally destroyed that market and there’s also a lot of other things going on in the auto industry like the Tesla III that’s just coming out now and they have all the hardware embedded into this Tesla III that would allow self driving.
So we’re really, to have a self driving car would really just change our whole economy because it’s not so important where you necessarily live anymore if your car can be summoned to you which there’s a summoning feature that Tesla is working on. You could summon a car to you and then you can sleep or read or do work as the car drives you home and then it also goes on to someone else after you. So it’s not the cost component at the same time.
Matthew: So there’s all these…
Roy: So you don’t actually need the product which is a car. You actually need the service which is transportation.
Roy: What a radical change that has when you think about it in terms of having all your money locked up in an expensive vehicles versus paying for it on a per use basis.
Matthew: Yes. So what an exciting time we live in. Thank you for those book suggestions and thank you for coming on CannaInsider and sharing a wealth of information it’s so exciting to hear what’s going on in Colorado and Washington. Well I have to have you back on as you have other states to come into GreenEdge.
Roy: Yeah absolutely. We’ll be pleased to talk about Oregon in a couple more months, Nevada, Arizona, California later this year.
Matthew: And give your website one more time if you would Roy.
Roy: Yes it’s www.bdsanalytics.com and of course the service we talked about so much is GreenEdge.
Matthew: GreenEdge great. Well thanks for coming on CannaInsider Roy. We really appreciate it.
Roy: Thank you it’s my absolute pleasure. You’re doing a terrific job with CannaInsider. I’m a very enthusiastic listener.
Matthew: Thanks Roy. If you enjoyed the show today, please consider leaving us a review on iTunes, Stitcher or whatever app you might be using to listen to the show. Every five star review helps us to bring the best guests to you. Learn more at www(dot)cannainsider(dot)com/itunes. What are the five major trends that will impact the cannabis industry in the next five years? Find out with your free report at www(dot)cannainsider(dot)com/trends. Have a suggestion for an awesome guest on www(dot)cannainsider(dot)com, simply send us an email at feedback(at)cannainsider(dot)com. We would love to hear from you.
Roy Bingham, founder of BDS Analytics shares the data
on what is selling in Washington State dispensaries, and compares
what consumers are purchasing in WA and how it is different from CO
About BDS Analytics
BDS Analytics is the indispensable source for
cannabis industry data and insight. By capturing millions of
transactions from dispensary POS systems they provide actionable
insights based on accurate information enabling dispensaries,
brands, and growers to sustain their success.
Learn more at:
[1:50] – Roy’s Background
[6:04] – Roy compares and contrasts Spins and BDS
[9:22] – Roy talks about how BDS serves its clients
[12:10] – Mistakes made if owners don’t have insights and data
[13:59] – Insights since the data has started mounting up
[18:38] – Using the data in an optimal way
[26:23] – Who in the organization analyzes the data
[27:52] – Data in other states
[30:28] – Insights coming from Washington
[39:06] – Investing information
[40:45] – Roy’s book recommendation
[45:01] – Roy’s contact information
What are the five trends that will disrupt the cannabis market in the next five
years? Find out with your free guide at: https://www.cannainsider.com/trends