RE:Salesthats 150 million dollar question right?
I think the reason is 2 fold.
1) their prices were too high with lost of competition- in certain markets.
I think there is a reason why 30% of their revenues were from Qubec last quarter with only 2 flower strains!!!!!!!!!!
8.69/g flower - bc the markup in quebec is very low - even though their prices are slightly higher - the difference to the consumer is minimal - and then quality can trump when prices are a wash.
and you choose 7acres all day long.
Thats why we had 1.3 mil in current and future price reductions subtracted from those revenue totals. I think H and F audit revealed the price concerns - and they made the necessary corrections.
Haze price dropped 2 bucks OCS - it sold out fast. alberta they did a nice price drop - to increase penetration as well.
2) Sales team was garbage and too small. They were so ineffective they had to outsource sales.....
They are really ramping up education, and given the constant contact with 85% of all provincial stores with humble and fume - we should have much better market penetration and store presence. You can't ask for more from a sales perspective now.
How much of an effect will these changes have?
I have no idea - I can give more anecdotal evidence of sales this q again - but that got us nowhere last q. YA we had 26% more sales (slightly less that what i thought) but a 20% reduction in selling price and 1.3 mil in price drops basically negated where i thought they would be.
Hopefully they set themselves in the market properly now - and at the least - they have a consistent wholesale price and sales possibility.