The New York State lawmakers have legalized recreational marijuana for those 21 years old and above. But even though cannabis has been green-lighted, local governments can still decide to opt-in or out of the legal sale of cannabis.
With towns and cities opting in and opting out to sell cannabis in their municipalities, New York cannabis market sizing has just become more important.
This article discusses the importance of market sizing in New York. So if you’re waiting to open dispensaries or retail stores in the state, this article is for you.
New York has the potential to be one of the country’s largest cannabis markets.
Though officials are slow to establish regulations, New York dispensaries are already opening.
What Is Market Size?
The entire number of prospective buyers for your cannabis products is referred to as a market size.
In more technical terms, it’s the total number of prospective clients or sales you can reach in a specific period (typically a year), or the total potential revenues you can generate during that time.
Why Is Market Size Important?
There are many reasons why effective market sizing is important, and all of them have to do with your revenue. Below are some of the reasons you should consider sizing the market if you plan to operate in New York.
●Get more investors. Market size is a measure of a company’s product or service’s potential. It will be considerably easier to acquire investment if you can demonstrate that you have a strong probability of producing money — and how much.
●Inform your marketing strategy. Knowing who your market is, how big it is, and how much money it represents offers you a solid platform on which to construct a plan and set clear future objectives.
●Establish a budget and hiring strategy. Knowing your prospective growth trajectory aids in more accurate budgeting and hiring suitable staff for the job at hand.
●Effective R&D budget distribution. Make the most of your R&D investment by learning more about your customers, what they want, and how you can meet their needs.
How to Determine New York Market Size?
It is essential to know your market size if you want to be successful. This knowledge will make it easier for you to adjust your marketing plans accordingly. Below are some ways you can determine the market size in New York.
●Clearly define your product or service’s target market. Think demographics and psychographics.
●Conduct market research to see how much interest there is in cannabis — is there more interest in recreational cannabis or medical cannabis?
●Gather information on the number of potential clients and annual transactions. Looking at revenue of medical cannabis sales including competitor sales may also help.
You can use a variety of supplementary resources to assist you with this research.
●Calculate the market size like this:
1.Assess the total addressable market (TAM) and then calculate your target market within that overall number.
2.Determine the penetration potential of your target market using your target market.
3.To calculate the market size, multiply the target market by penetration rate.
Hire a Research Company
To make market research easier while having more accurate results, get a research company to do the data gathering and analysis for you.
Market research companies provide a range of services that can help you not only determine your market size but also understand the best ways to approach your target market.
They may use public opinion polling, focus groups, interviews, surveys, and content analysis to collect data.
If you want—and you should— a research firm that specializes in cannabis, check out ISA Group.
ISA Group can help you make informed decisions about your marketing and achieve your goals faster. Learn more about their full-service research and analytics for New York cannabis market sizing and have data-driven marketing strategies today!