Housing Works Cannabis Co, the first recreational dispensary in New York, opened its doors on December 29th, 2022 using the BLAZE cannabis software suite to run its large cannabis retail operation. In this case study, we’ll cover the challenges they faced as a new dispensary in a new market and how BLAZE helped them streamline and scale their business.
Photos by Gary Gershoff/Getty Images for Housing Works
Photo by Buck Ennis
“As the first legal cannabis dispensary and delivery service in New York City, expectations were high. Fortunately, BLAZE was able to get us up and running in no time. Using the full stack has allowed us to improve the customer experience in-store and online. Our e-commerce website gives us the opportunity to increase our brand visibility and reach new customers throughout Manhattan, Brooklyn, and Queens.”
About Housing Works Cannabis Co
Photo by Gary Gershoff/Getty Images for Housing Works
All proceeds from Housing Works Cannabis Co support Housing Works, a NYC nonprofit dedicated to relentless advocacy, lifesaving services, and justice for all. Housing Works was founded in 1990 by a group of activists who demanded safe and stable housing for people with AIDS. Today we meet our mission by providing housing, healthcare, and vocational training to thousands of New Yorkers annually. Their direct action and advocacy uplift communities that have suffered under the war on drugs. Housing Works Cannabis Co is honored to feature products from LGBTQ+, BIPOC, and women-led brands, as these communities have been disproportionately affected by drug criminalization.
Challenges
Housing Works Cannabis Co was the first CAURD licensee in New York State to sell recreational cannabis. They needed to hit the ground running with a proven technology partner that was capable of powering every facet of cannabis retail operations. A partner that could not only ensure compliance but also help them scale quickly.
A key challenge was to not only accept delivery orders online but also to ensure that all of these orders were prepaid. This is the result of a regulatory requirement by the New York Office of Cannabis Management. They needed an e-commerce solution to run on a site that they own (not a marketplace), with an easy-to-use checkout flow and fully integrated payments.
Solutions
Housing Works Cannabis Co was the first CAURD licensee in New York State to sell recreational cannabis. They needed to hit the ground running with a proven technology partner that was capable of powering every facet of cannabis retail operations. A partner that could not only ensure compliance but also help them scale quickly.
A key challenge was to not only accept delivery orders online but also to ensure that all of these orders were prepaid. This is the result of a regulatory requirement by the New York Office of Cannabis Management. They needed an e-commerce solution to run on a site that they own (not a marketplace), with an easy-to-use checkout flow, and fully integrated payments.
Powerful Point-of-Sale
BLAZE Retail enabled Housing Works Cannabis Co to run efficiently during their Grand Opening and on their first 4/20 processing an average of over 100 transactions per hour, with a peak of 2+ transactions per minute! Building a community was a high priority for Housing Works Cannabis Co and BLAZE Retail gives them the ability to reward their customers with a points-based loyalty program that keeps them coming back. In their first six months of business, they’ve generated about $12M in cannabis sales.
Advanced inventory features such as bulk editing and PO imports help staff take control of purchasing, vendor tracking, and sell-through rates. This has helped them add 200 new product SKUs since opening and support LGBTIQA+, minority, and women-owned brands. Staff can manage separate queues for walk-in, pick-up, or delivery to ensure customers receive the correct orders.
Integrated Payments for In-Store and Online
BLAZEPAY® has increased House Works Cannabis Co Average Order Value (AOV) by 55% with cashless payments versus cash. Walk-in customers are provided with the familiar purchasing experience of inserting a debit card chip into a terminal and entering their PIN number. They pay the exact amount of the order rather than having to round up the order and get cash back.
Customers shopping online are presented with an option to prepay at checkout. This is an OCM requirement for all online orders. Additionally, it saves time for pickup and delivery orders. Returning online customers checkout even faster since their bank account is already connected. Housing Works Cannabis Co rarely experiences canceled prepaid orders and reconciliation is a breeze with our integrated solution.
Native E-Commerce that Drives Organic Traffic
BLAZE ECOM™ powers Housing Works Cannabis Co’s premium e-commerce theme to help them stand out and stay on-brand. The team paired that with a beautiful content site, which they own and have full control over their sales and marketing data.
The SEO-optimized product, brand and category pages have improved their google ranking and attributed to 52% of online orders coming from organic search (SEO). The ability to use their own analytics to run marketing campaigns has allowed them to identify their most successful channels and reach a larger customer base in the city.
Dynamic Delivery Management
BLAZE Delivery® supports on-demand and scheduled delivery. It enables Housing Works Cannabis Co to focus on customer service while the Delivery software is used to quickly manage fleet, compliance, and drivers. They estimate that 5%-7% of sales are from same-day or next-day deliveries.
Being the first licensed retailer to deliver cannabis in New York State, Housing Works Cannabis Co. needed a knowledgeable partner to hit the ground running. Manhattan presents challenges for a new upstart delivery service but the BLAZE + Onfleet integration provides advanced route optimization and driver tracking to improve efficiency and reduce delivery times. This has given them the ability to expand their service area in a short amount of time.
Data-Driven Reporting
BLAZE Insights® allows Housing Works Cannabis Co to manage floor staff more efficiently by visualizing when surges will happen. They also have access to reports that show rates of sale, reveal customer affinities, and lifetime values, and identify cost-saving opportunities with inventory data.
BLAZE Insights has also been helpful in identifying product preference in specific delivery zones. This helps to optimize the inventory that delivery drivers carry in their vehicle when fulfilling orders on-the-go. Having the ability to automate daily, weekly, and monthly reports helps management make data-driven decision on what products to stock and how to improve sales and customer service.
Conclusion
As the first legal adult-use cannabis retailer, Housing Works Cannabis Co set a precedent on how to expand a brand and scale operations. BLAZE has now helped several CAURD licensees optimize their in-store and online shopping experience. Learn how BLAZE can help your dispensary streamline operations and maximize your profits. Book a Demo today!
