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Founded in April 2021, Tonik Cannabis has established itself as a small business in the Canadian adult market.
Tonik owner Anthony Horvath said the birth of Tonik was inspired by his sons Bronson, 23, and Connor, 27.
© Courtesy of Tonik
“As a family, we decided to open Tonik to spread this knowledge to our community. I wanted to be more involved in the community of cannabis business times “Having a local business is a great way to meet people, educate them, and answer cannabis questions. It’s designed to make everyone feel included, no matter what.”
Since Tonik opened, it has grown exponentially despite increasing competition. The company has seen growth of 12% to 15% almost every month since opening, according to internal data, and was recently voted by the community as the best cannabis store in Brantford, Ontario, where there are 20 retail stores. I was. Brantford is a small town of just over 102,000 people.
Here, Horvath shares how the company has established itself as a small business in the Canadian adult market and continued to grow despite increasing competition.
AR: You mentioned that Tonik has been seeing 12% to 15% growth almost every month since it opened. Could you elaborate on that?
Anthony Horvath: I have a monthly sales report every month so I can see how things are going month by month. We’ve also been very lucky in that we’re seeing positive growth and increasing cash flow month after month.
Peaked only between October and November [2022,] That’s not uncommon in this industry. Usually that is when everyone is harvesting.Given that flowers and prerolls are some of the hot sellers [here], the people we are with grow cannabis in their backyards and homes. In general, when it comes to the harvest time around October, people tend to start smoking the things they make themselves for a while, and then come back and shop around the time they get tired of it. So it kind of leveled off in October/November, but a lot of stores saw him drop a lot, like 10% to 20%, but we kept at it.
December [2022] It was the most wonderful month for us. In fact, he saw a 26% increase in sales compared to November. …and speaking to other reps, [I learned] Many other stores were stagnant and weren’t really making a positive profit.
AR: What do you see as the key drivers behind Tonik’s month-over-month growth? Are you implementing new tactics each month? What sets your business apart from the competition?
Oh: I think there are several factors that have made it so successful. One is that the focus here is all on education. We call this the effortless customer experience. This simply means that the store is very welcoming when customers come to the store.
This store is very minimal, white, with a few tablets and unlike the Apple Store where that’s the only way to see the products. Everything we carry can be seen visually. It’s a large space, so you can feel comfortable walking around and browsing.
We have very highly educated battenders who work for us. They are all cannabis consumers. They all have niche areas in which they have expertise.We are focused on the wellness area dealing with pain management, sleep and anxiety.We are a recreational shop and medically While we recognize that we are not supposed to speak and offer medical advice, we can speak about our own experiences, and the products and properties they contain, the cannabinoids. [and] part of the effect. Consumers then simply take that information and make their own decisions based on it.
Our close contact with our clients and spending time with them is what we feel is necessary for them to make informed decisions about their products. [and] Match the right products to your needs. As a result of the story behind the creation of Tonik, it had great word of mouth. Many people knew my sons through their involvement in the community. Before opening Tonik, Connor and Bronson were both very social, so people got to know them. They immediately felt that trust.
AR: You mentioned consumer education and creating one-to-one customer experiences. Why are these 1:1 experiences important to Tonik’s overall success?
Oh: There is no doubt that clients come to us with mostly information or misinformation. Some people are just looking for something to replace alcohol, while others, as mentioned above, are looking for help managing pain, anxiety, or simply sleep problems.
We give consumers 15, 20, or 30 minutes to give them all the information they need to make an informed decision and feel comfortable about the products we offer. .
AR: Do you have any advice for new business owners looking to enter this space on how they can position themselves in a saturated market like Brantford?
Oh: It’s definitely a very challenging and oversaturated market. Patience is important and important. Strong customer service is the only way. Everyone is selling the same product as a whole, so you need to find a differentiator—a unique niche that you can focus on.
In our situation, based on the region in which we are physically located, [our clients] Over the age of 35, the male to female ratio is 50:50. This is interesting. So find your niche. Address less focused segments of the market.
We focus on educating our staff, embracing what you have and making sure you are an avid consumer of the products you find. They don’t have to know everything about every product But you should at least have a really active interest in some part of the cannabis industry. If you don’t believe in the product you’re selling, it shows when you’re in front of a client. And if that’s missing in your business or in the team members who are the front of your house, that’s really going to come across. I think that’s what differentiates the others that are coming out on the market right now when you’re competing with the others.
AR: Price compression has been a big challenge for market operators. How is Tonik weathering the impact of price compression?
Oh: Of course, there are also shops that stick to the price.they are going to [be] discount pharmacy.I have a property that I just recently moved into. [in Brantford]It’s the lowest price guaranteed or people will price match anyone and get an extra 5% off so there’s a worthwhile discount place.
The saying “you get what you pay for” is absolutely true. we stand by it. We are not the cheapest in town. We are close to the top third in the price range of our products, but in addition to getting our products, we appreciate what we have to offer. [consumers] We are happy to pay that small incremental increase for everything else you get while working with us. So we don’t compete on price. I never do This means that you obviously want a fair market value for your product and you don’t want to price it above what the market will charge, but we are not your store of value.
AR: What are your company’s short-term and long-term goals?
Oh: Initially, we were thinking of opening multiple stores. Perhaps he could have 3 stores in a few other towns in our hometown. …with some small towns around [here]and we thought that once we established ourselves here, we might open a few more locations, but we changed our approach.
We are now focused on one store, making it an important brand in our community, growing our business from one location and becoming the number one retailer in Brantford. Great customer service and well curated product selection.
We will continue to provide products that consumers need. …we are looking at getting more involved in the community beyond just providing additional services. That’s what we’re here for and we plan to continue that, with additional stores on the backburner at this point. It may just expand the footprint of the a little more. But that’s at least kind of our goal for the next 12-18 months.
Editor’s Note: This interview has been lightly edited for style, length, and clarity.
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