Alt Pro Expo Magazine 2023 Q1 - Issue 2

ISSUE #2 | Q1 2023

M A G A Z I N E

NEXT SHOW MARCH 03-05

FORT LAUDERDALE P

R

NTING SPONS SE O RE

DELTA-8 THC

PRODUCT SPOTLIGHT

RETAIL VS. E-COMMERCE

Pg. 11

PLUS! DEALS,

12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

SMOKE SHOPS

Pg. 26

Pg. 68 FREE TICKETS INSIDE! Pg. 47

PROMOTIONS, DISCOUNTS, AND MORE

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TABLE OF CONTENTS

11 26 47 58 68

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ISSUE #2 | FEB 2023

Delta-8 THC Product Spotlight 12 Essential Tips to Make your Smoke Shop Thrive Upcoming Shows Tampa 22’ Recap Retail vs. E-commerce Smoke Shops

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PRODUCT SPOTLIGHT: Delta-8 THC The industry is experiencing a boom for a psychoactive substance extracted from hemp called Delta 8-Tetrahydrocannabinol, also known as Delta-8 THC. However, due to many regulator challenges, its commercialization often sits in a gray area, even in states with more lax policies towards THC and other derivatives.

For business owners and entrepreneurs to understand and leverage the current playing field, it’s crucial to understand what makes this compound so popular, starting from its origins.

WHAT IS DELTA-8 THC? Unlike many other compounds in the cannabis plant, this cannabinoid is not directly extracted from it but is rather extracted in laboratories using CBD (a non-psychoactive cannabinoid), oil, and other chemicals.

Delta- 8 sat for some time in a gray regulatory area because when converted from CBD, it carries traces of another very popular, yet sometimes very regulated, cannabinoid, Delta-9. These two chemicals are the only components in the Cannabis plant that produce psychoactive effects. Delta-8 is less abundant than Delta-9 and can only be extracted by being synthesized because their molecular bond is at different points.

Delta-8 THC is often used in different products, and it is possible to obtain and legally buy it in the form of tinctures, vapes, edibles, etc. Although exact sales figures are not available, this cannabinoid is now part of the quickestgrowing sector in hemp’s chemical market due to the lower wholesale prices of CBD and its supply excess.

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PRODUCT SPOTLIGHT: DELTA-8...

Current Challenges The market saturation of CBD affected Delta-8’s commercialization in 2020, as the general

perception for them to innovate was low. However, this position drastically changed after the worst of the pandemic subsided. Increased demand for Delta-8 THC ensured, providing an

opportunity for farmers to increase their hemp production substantially. However, the increased popularity didn’t come alone, and the conversation around its legal status got reignited.

The growing market now makes it very attractive for businesses to invest in the production and selling of Delta-8 products. Today, the cannabis market size is about $20.47 billion, with a projected increase of $16 billion more by 2026.

As the popularity of this cannabinoid keeps increasing, new products will continue to populate the market. You can even find combinations of Delta-8 with various compounds, such as GNB, which reportedly help users manage insomnia.

Effects Delta-8 is, for the most part, mainly produced as an alternative to the enjoyable effects of Delta-9 as it creates a softer, almost gentler, sensation. Some of its reported side effects include dry mouth, redness, and nausea. Much like its counterpart Delta-9, it can also increase one’s appetite.

Delta-8 stimulates both the CB1 and CB2 receptors, unlike its stronger counterpart, which only activates CB1 receptors. These different and unique effects also contributed to many customers choosing Delta-8 products over other derivatives.

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PRODUCT SPOTLIGHT: DELTA-8...

Health benefits of Delta-8-THC There

are

reasons

beyond

its

effects why this compound has become popular. While there have not been any conclusive claims, studies about Delta-8 are carried out continuously. However, There’s still a lot to learn and understand about it. A few studies, for example, report that this cannabinoid could have various beneficial effects on different health alignments.

Some researchers have noted that Delta-8 might enhance our brain function. The compound can reportedly increase the release of acetylcholine, a neurotransmitter. Acetylcholine can impact people’s cognitive function, memory power, and ability to learn new things.

Among other reported benefits, a 1974 study suggests that Delta-8 could help people deal with nausea as an immune system

activator. When combined with CBD, the psychoactive effects are further reduced, allowing consumers to get the advantages of both substances while experiencing minimal to no high.

Regulations There can not be a discussion of the legal state of Delta-8 without referencing 2018’s farm bill, in which the legal status of hemp changed across the US, allowing farmers to cultivate and extract it without worrying about legal issues. While Delta-8 can not economically be extracted from hemp, it can be converted from cannabidiol (CBD), increasing its production.

Delta-8 tends to be legal within the same states where cannabis enjoys fewer restrictions.

However, it’s important to note that federal law 2018 sets a legal framework for delta-8, where the traces of Delta-9 have to be less than 0.3% to be considered legal.

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PRODUCT SPOTLIGHT: DELTA-8...

The legal status of Delta-8 in various states

The legal status of Delta-8 tends to vary by location, but to get a glimpse of how it’s handled by different states, here are a few examples:

Washington Producing and selling delta-8 is against state law.

Colorado Delta-8 is not allowed in dietary supplements, food, and cosmetics and also is not regarded as hemp.

Kentucky and Vermont Growing delta-8 and selling risks criminal prosecution Oregon The law suggests limiting the use of THC of any kind in products made for minors.

Today, a lack of consistent regulation is one of the industry’s biggest enemies. However, as popularity grows, clearer and more open legal frameworks are bound to make matters easier for business owners across the country.

Final Thoughts Interestingly enough, one of the biggest challenges Delta-8 faces is how it’s synthesized.

As this cannabinoid comes from CBD, many argue that it should fall under the same legal status, as CBD tends to have fewer restrictions. However, those small, almost unnoticeable levels of Delta-9 keep the conversation open.

On the other hand, Delta-9 advocates sometimes debate the same points, arguing that the similarity between the two should be grounds to clear some of the restrictions on them. This situation effectively leaves Delta-8 in the middle of two arguments. However, the popularity of the compound is not going anywhere, and it’s only a matter of time before things change.

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12 ESSENTIAL TIPS

TO MAKE YOUR SMOKE SHOP THRIVE

A

s we settle into 2023, it is clear that this will be a defining year for smoke shops.

Potential changes in regulations could considerably shift the landscape, and with it, business owners will have to adapt. Thriving in such volatile conditions isn't easy.

Staying informed and open to change is a pathway to success, but there's so much more that can be done to make sure most business goals are constantly met.

These different strategies and tactics that can be implemented in order for a smoke shop to achieve its overall goals. These tactics include optimizing your shop's layout, investing in digital marketing, constantly innovating, and providing exceptional customer service. All these factors can help you with your business. Here are 12 essential tips to not only make sure that your smoke shop remains successful and profitable not only this year but those ahead.

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

1

Effective financial management It's not uncommon for businesses to underestimate the amount of money they need to operate successfully. Having enough capital to take a company further is one of the most significant barriers to success. This issue is not limited to smoke shops but it’s instead a problem that affects all types of companies across every industry.

Effective financial management for smoke shops involves setting realistic financial goals, creating and adhering to a budget, accurately tracking and analyzing financial performance, and making informed decisions about allocating financial resources. It is essential to educate yourself about personal finance and budgeting, regularly track your spending, and seek professional advice if needed.

By adequately planning, organizing, and controlling the company's financial resources, businesses can make informed decisions about resource allocation, financial management, and profit maximization. In addition, effective financial management enables businesses to anticipate and navigate financial challenges, such as economic downturns or unexpected expenses.

2

Product selection

As a smoke shop owner, it's crucial to make sure you're stocking the right products to meet the demands of your target demographic and local market. Research popular products in your area and keep an eye on industry trends to see which items are selling well. Also, don't forget to ask for customer feedback on their favorite product.

Join trade shows and expositions to be up-to-date on new product releases, so you can always offer the latest items and releases to your shoppers. By following these steps, you can curate the perfect selection of products and stay ahead of your competitors.

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

3

Train your staff In the past, when smoke shops were few and far between, the appearance of staff members wasn't really much of a concern. You could hire anyone as a store attendant and make good money. However, as alternative products become more popular as stores grow in size, this is no longer possible.

Investing in the training and development of your staff is key to the success and growth of your business. Not only does training your employees help to increase their job satisfaction and motivation, but it also enhances their skills and knowledge, leading to improved performance and efficiency. This, in turn, can translate to better customer service and increased customer loyalty by providing your staff with the tools to navigate different situations like angry customers.

Additionally, providing ongoing training opportunities for your staff can help to reduce turnover and help you promote a positive company culture, which is important if you want your smoke shop to grow further.

Training your employees help to increase their job satisfaction and motivation, but it also enhances their skills and knowledge

4

Research regulations Laws and regulations are constantly changing, even more so in the smoke shop industry.

Understanding and adhering to the legal frameworks that govern your smoke shop is essential, not only for it to legally operate but to capitalize on diverse product offerings.

Staying informed on the relevant laws and regulations can also be a great opportunity to learn and grow as a business owner.

If you ever have any questions or concerns, don't hesitate to seek the advice of a qualified legal professional. By proactively researching and following the legal frameworks in place, you can safeguard your smoke shop from many potential problems and set yourself up for long-term success.

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

5

Having an online presence

In today's digital age, smoke shops need to have an online presence to reach and engage consumers. An online presence can help smoke shops attract new customers and build brand awareness.

At the very least, a smoke shop should have a Google My Business page where potential clients can look up essential information like opening hours, addresses, prices, etc. You can further increase your presence and reach by creating content that is valuable and engaging for your target audience. This could include blog posts, articles, videos, or podcasts about topics related to your products or the lifestyle around it.

By establishing an online presence, smoke shops can position themselves as reputable and professional businesses, ultimately leading to increased customer trust and loyalty.

6

Vet Suppliers

You need products you can trust and rely on to make your customers happy and satisfied.

Beyond product research, this is also a matter of finding suppliers. You have to research their history and reputation by looking for reviews and testimonials from other businesses and industry professionals. It's never too much to ask for references from businesses the supplier has worked with in the past.

Once you're satisfied with their product offerings, consider their pricing and payment terms and negotiate terms that work for your business. Don't forget to get everything in writing and verify their certifications and licenses to ensure they operate legally and ethically.

Not vetting suppliers can lead a business to experience severe issues like stocking up on dangerous or poor-quality products. Situations like this can lead to negative reviews and product returns which will hurt your business in the long run.

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

7

Location, Location, Location.

It might sound cliché, but the right location can help to increase your earnings potential, reduce your operating expenses, improve your market impact, and make your business operations more efficient. From factors like the size of the population near the shop, the nearby presence of other smoke shops and businesses, and parking availability, making sure you choose the right location for your business is crucial for success. With careful consideration of these factors, you can ensure that you select a location that will maximize your smoke shop's potential.

Making sure you choose the right location for your business is crucial for success.

8

Lack of social media presence

Just like having a website, social media is one of the most important aspects of any business trying to connect with its customers online. These platforms have become an integral part of any compelling marketing strategy, and they can effectively extend a smokeshop reach beyond its brick-and-mortar location. On top of this, many modern smoke shops make a significant chunk of their money from social media sales.

However, it is also crucial to be mindful of the rules and regulations set by each platform to avoid bans or other penalties. The advertisement of many of the products carried by smoke shops tends to be heavily regulated online. Depending on your location, It is important to ensure that your images and videos include appropriate disclaimers to avoid any regulatory issues CONTINUES ON PAGE 41 38 | ALTPROEXPO MAGAZINE

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

9

Achieving the right atmosphere It's not only about what you can do behind the scenes but what any potential customer sees when they walk up to your shop. Improving the look of your store is all about paying attention to details, starting with small changes, like making sure the store is clean and well-organized.

Use attractive displays to showcase your products. Consider using display cases, shelving units, and other types of fixtures to help create a visually appealing store. Customers will be more likely to shop in a store that looks tidy and welcoming.

Beyond the visuals, Setting up comfy chairs and couches, a music system goes a long way toward making a space look inviting. Not every business has to look the same, but achieving a rather unique yet inviting look can do wonders when it comes to attracting people outside the business's target audience. Always remember that your goal should be to create a more enjoyable shopping experience for your customers.

10

Participating in Industry events Attending trade shows is an important opportunity for smoke shop owners to stay up-to-date on the latest industry trends, network with other professionals, and discover new products.

At a trade show, shop owners can learn about industry developments and new smoking products and accessories and get a chance to see and test items before they hit the market.

Events also provide a unique opportunity for shop owners to connect with suppliers and build valuable relationships that can help grow their businesses. Ultimately, it's important to carefully evaluate the trade show and determine if it aligns with your business goals and if the potential benefits outweigh the costs.

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12 ESSENTIAL TIPS TO MAKE YOUR SMOKE SHOP THRIVE

11

Keep prices competitive Customers will flock towards better prices for quality items, so you need to ensure you're staying competitive by adjusting your process to better reflect customer expectations. Take the time to research the prices of other smoke shops in your area and online. This will give you a sense of the market rates and help you determine if your prices are competitive.

Consider offering price promotions or discounts to attract customers, but be careful not to devalue your products or undercut your own pricing. Don't be scared of offering special prices to your most loyal customers. By keeping your prices competitive and carefully evaluating your pricing strategy, you can attract and retain customers while still turning a profit.

12

Consider partnering with other businesses.

Partnering with other businesses can be a highly effective way to advance your own company. By teaming up with complementary organizations, you can gain access to new markets, customers, and resources.

To find the right partners, start by identifying your business goals and the areas where you need support. Then, research companies that have expertise in those areas and reach out to them to discuss potential collaboration opportunities.

When negotiating a partnership, be sure to clearly define roles and responsibilities, establish benchmarks for success, and consider creating a formal agreement to ensure that both parties are on the same page. You can take your business to the next level with the right partners by your side.

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NOT ALL PAYMENT PROCESSING IS CREATED EQUAL Four things WAAVE's CEO wants you to know 1

SILVANA CARPANELLI-HAYES, CEO

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WAAVE is a Tech Company, we focus on developing cool products for our merchants. Our goal is to give you more tools, to sell in more places. Our solutions go beyond simple card processing, we cover your compliance and marketing too.

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RETAIL VS. ERETAIL VS. E-COMMERCE SMOKE SHOPS

The smoke shop and tobacco industry has significantly shifted in recent years. The proliferation of different types of businesses made competition fiercer and made it hard to tell what a smoke shop is, unless it’s actually written in the store’s name.

For example, the official tobacco and smoke shop census excludes vape shops from their categories. Yet, the product offerings of these businesses are often intertwined with one another. What sets them apart, most of the time, is the way they operate.

Differences become more apparent between platforms. As the divide between online and brick-and-mortar retailers continues to widen, smoke shop owners must make well-informed decisions regarding the right business model. Both models come with unique benefits and challenges, and savvy entrepreneurs must weigh the pros and cons to determine which strategy leads to more revenue.

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-COMMERCE Advantages of Traditional Retail Smoke Shops Personalized experiences Meeting consumers’ demands is a constant challenge.

However, brick-and-mortar stores have more control over the overall experience, which goes a long way toward making sure customers are satisfied. By providing an environment where shoppers can inspect and try on products, companies can improve the instore experience and build trust with their customers.

Local community support Consumers are also becoming increasingly more conscious about the social impact of their choices, and many would instead support their local businesses and community than shop online. Many companies survived the worst pandemic a few years back thanks to local support, which shows how important it is to thrive.Immediate gratification.

Immediate gratification One of the key benefits of buying in-store is the ability to take home your purchase immediately. Unlike online shopping, which can involve waiting for delivery, in-store shopping allows consumers to have their products immediately. Smoke shop customers often want their products right away, especially if they’re for consumption.

Advantages of E-Commerce Smoke Shops 24/7 availability The constant availability of online offerings also means that businesses can take advantage of global markets, serving customers in different time zones and regions. On the other hand, online businesses have more tools to extend their reach and customer base, making them a more dynamic alternative. What brick-and-mortar locations spend on maintenance and rent online stores can use to improve their marketing efforts.

The convenience of shopping from home Shopping from home means that consumers can shop at any time, from any place, and avoid the crowds and long lines associated with physical retail stores. This is particularly beneficial for those with busy schedules, mobility issues, or living in areas without convenient access to shops. With the rise of mobile e-commerce and the ability to shop via smartphones and other mobile devices, online shopping has become even more convenient.

A wider selection of products Online retailers can carry a much larger inventory than brick-and-mortar stores, which are limited by their available physical space. Larger inventories allow online retailers to target specific demographics and niches more effectively, resulting in increased sales and customer loyalty.

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RETAIL VS. E-COMMERCE SMOKE SHOPS Challenges Faced by Traditional Retail Smoke Shops Increased competition from online retailers and big box stores The shifting consumer behaviors affect retail smoke shops quite a bit because consumers’ spending habits are heavily influenced by the online market, which prioritizes convenience, speed, and online reviews, which can be difficult for traditional retail shops to offer. To address this challenge, brickand-mortar stores need to find ways to differentiate themselves and provide a unique and enjoyable shopping experience for their customers.

Difficulty in reaching and marketing to a younger audience Younger consumers are more likely to engage with digital platforms and are more likely to shop online, and therefore may not be as likely to visit a traditional smoke shop. Traditional smoke shops may struggle with digital marketing, as the younger audience tends to be more influenced by social media, influencer marketing, and e-commerce platforms.

Challenges Faced by E-Commerce Smoke Shops Trust and reliability issues The wide selection of online offerings and products also means that there are a lot of subpar products out. Due to the fact that customers cannot physically inspect or handle products before purchasing, it can be difficult for them to determine the quality and authenticity of the product. This can lead to issues with customer dissatisfaction and product returns.

Difficulty in building personal relationships One of the biggest challenges for online retailers is the lack of personal interactions with customers. In-store, customers can speak with knowledgeable staff, get personalized recommendations and build a sense of trust and loyalty with the staff. Online retailers may find it difficult to replicate these interactions through digital channels and may have to rely on other methods to build relationships with customers.

Shipping and handling costs Customers may expect to receive their products within a reasonable timeframe, and delays can cause dissatisfaction and mistrust. Online retailers must ensure that they have efficient and reliable logistics and shipping processes to meet customer expectations for timely delivery.

Final thoughts

While their differences are sometimes stark, success lies in identifying what works in both models and applying it to their own model. For example, online businesses can attend trade shows and events to maximize and leverage a physical location’s benefits. In turn, brick-andmortar stores have to embrace technology and use it to enhance their shopping experience.

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