Raising Cannabis Capital 0143: The Peak Beyond

Cannabis dispensaries are the perfect launching pad for The Peak Beyond's revolutionary technology.   Their proprietary interactive displays give patients the freedom to compare and research products prior to making their purchase.  Jeff LaPena and Bill Stark join Dan Humiston to talk about changing the retail experience, their rapid expansion and their current capital raise.

Produced By MJBulls Media | Cannabis Podcast Network 

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Announcer:
Today's show is brought to you by a former guest, Helix TCS, yes, one of the largest publicly traded non plant touching Cannabis companies in the world. Trading on the RTC under ticker symbol H L I X, their portfolio of industry leading technology compliance and security companies is designed to scale internationally to capitalize on the inevitable proliferation of legal Cannabis without the risk and limitations of being a Cannabis producer. Record Q2 earnings driven by their market share leading seed to sale tracking software has positioned Helix T.S. S. as one of the most exciting ancillary companies in the Cannabis industry. To learn more about Helix, T.C. s trading under ticker H. Ally X go to Helix T.C. s dot com or listen to Raising Cannabis Capital Episode 96.

Jeff LaPena:
We definitely have positioned our company as one that is reinventing or renovating the retail experience to be closer to shopping in the comfort of your own home with all the information at your fingertips. And this sort of revolutionary part of this is that it's not a purely digital experience where you just get sucked into a screen because the actual physical products are the buttons and the levers that you pull and push to trigger the interface.

Dan Humiston:
From MJBulls media, it's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, how this company's proprietary dispensary technology could ultimately change the way we shop at all retail stores. Today, Raising Cannabis Capital, we are joined by the peek beyond. Jeff La Pena and Bill Stark. Guys, welcome to the show.

Jeff LaPena:
Yeah, thanks. Happy to be here. Thanks for having us. I'm.

Dan Humiston:
I'm glad to have both of you guys here and I have to come clean. I completely misunderstood your company. Completely missed it. Every time I do a show, I spend a few hours trying to learn about the company. So it seems like I know what I'm talking about, even though sometimes I don't. And one mistake that I make all the time is I assume I know what the company does before I really do. And I did it again with your company. I started off thinking that you were like a menu board company. As I'm reading your website and a lot of words that don't make sense, I'm like, wait a minute, you got to start over and I start over. Discovered, my God, you are so much more than you bought company. So let me start off by apologizing. I'm so excited for the listeners to hear what you actually do, Jeff. Pretend we are customers at a dispensary. Explain to us how to use your smart displays.

Jeff LaPena:
Yes, absolutely. Our display is work with a kind of tangible element, which we're different than menu boards. And the fact that we encourage customers to actually interact with products as a way to learn about them. So if you walk up to one of our displays, you'll see some featured products on a shelf next to a digital display and a customer can pick up one of those products from the featured shelf, put it down next to the digital display, which then pulls up information about that product. So if I'm a customer who is really interested in products that are gonna help me relax, this is one way for me to discover those products while they're out in front of me. And has been in the dispensary before. You know that this is a little bit different than the standard shopping model inside of a dispensary, which is exactly what we're trying to improve upon.

Dan Humiston:
To me, that's great because I hate it when the clerk comes up to me and wants to talk. I mean, I want to do this by myself. So when I saw this, I was like they of course, this makes so much sense. You're free up the dispensaries bud tenders so that they can do other things. Customer interaction has to increase because now I can say, well, what about this product? What does that do? I mean, the benefits of dispensaries are just obvious. This is has the potential of revolutionizing sort of the retail experience, bringing back to life the brick and mortar retail operation.

Jeff LaPena:
Yeah. Yeah, it definitely does. And we definitely have positioned our company as one that is reinventing or renovating the retail experience to be closer to shopping in the comfort of your own home with all the information at your fingertips. And this sort of revolutionary part of this is that it's not a purely digital experience where you just get sucked into a screen because the actual physical products are the buttons and the levers that you pull and push to trigger the interface. We're really creating an interesting and valuable alchemy between the tangible city of products in a retail environment and a digital interface where they're completely connected and blended in a way that really enhances the consumer experience.

Dan Humiston:
If all these customers are given products and watching what happens, that information is so valuable to dispensary, but more importantly, the brand and the industry wide value as well.

Jeff LaPena:
There's a lot of transactional, you know, in the Cannabis industry, a lot of reporting happening. There's not as much reporting around how people are shopping. And so because we have this digital interface in stores that people use to learn about products, submit orders. We are one of the only companies able to collect that consumer behavior data. So we're able to see what a customer looks at before they make a purchase or which products they are comparing before they make a purchase. Do they watch a video and how effective is that video in driving that purchase? And so all of this data is extremely valuable. Yes. To the dispensaries. Those brands and industry wide to kind of get a better understanding of the consumer.

Dan Humiston:
So the brands provide you with the information about their products and they scan the product, the brands. Information comes up. And then from there, I get an opportunity to interact with this information, almost like their Web site as a whole would work.

Jeff LaPena:
Yeah. And we also have other content partners and a lot of the time that the content has come straight from the brand. If we're featuring that brand for the brand, that's a great opportunity to build their relationship with their consumers instead of relying on Bud Tender or a consultant in the store. The brands can know in this case that exactly the information that they want to get to the consumer is reaching the consumer.

Dan Humiston:
You put together a video and you can tell them, hey, everyone's dropping off it. Thirty two seconds. All right. I need to change something, cause something at 32 seconds is making these customers drop off my video. That kind of information is invaluable because you. You said in everything you're doing.

Dan Humiston:
Absolutely, yeah. Oh, my gosh. I want to take a quick break. Thank you for listening to today's show. As the leading Cannabis podcast network, we're constantly adding new Cannabis podcasts to support our industry's growth. And that's why we're so excited to announce our newest podcast, The Cannabis Breakout, which premieres October 18th. The show's about the thousands of Americans who remain in prison for violating Cannabis laws that have long since been overturned. The Cannabis breakout gives Cannabis political prisoners a voice. If you're a former Cannabis prisoner or have a loved one who is a Cannabis prisoner, we want to share your story. Please go to MJBulls.com and sign up to be a guest.

Dan Humiston:
Bill, you gotta have the easiest job going. This is gonna sell itself. Explain the business model, Bill. Tell us, you know, how do you charge dispensaries? How do you charge brands? Can you sell the data?

Bill Stark:
What we do is we have a typical software as a service. Model B brands and dispensaries are charged Coors display, which scales quickly for affordability. Fifteen hundred dollar activation fee and five hundred dollars a month. That would be like for one display. And then as the store or the brand scales, the price per display goes down significantly. Our average most stores pay well 4000 a month and have anywhere between 10 and 20 displays.

Dan Humiston:
It's so reasonable because you pay way more than that for having employees. When you add up all the extra extra extra costs that are associated with having those employees just wandering the floor, you're saving money at four thousand dollars a month for both of the use cases were able to capture the behavioral data.

Bill Stark:
A lot of the brands. That's really what they're paying for. Isn't that reporting on some of our use cases, we're seeing 300 customers a day on branded displays.

Jeff LaPena:
So, Dan, I just wanted to clarify our different offerings. So we do have a brand product and we do have a dispensary product. Those are separate. But really the main thing that our company is focusing on is kind of revolutionizing the dispensary models. What that looks like on our side is that we are working with a lot of dispensaries who are new build outs and they want to transform the entirety of their stores. So they're they're building their entire store around these displays with between 10 and we're about to launch a store with 34 of these displays. So literally, the entire shopping experience is based on this method of product discovery. And so just wanted to make that clear.

Dan Humiston:
Yes, it really is apparent in your website, so much clearer to appreciate this when you look at your website and you see how the displays are there. You know, it makes a lot more sense. I can see where you're going. And I love I love the reoccurring revenue of them every month. You know, you just know it's this come in. You can build your budgets around it and you can plan for it. It's so good. So you have a killer product and it's in the market. So what's next?

Jeff LaPena:
Yes. So really, it's just sales and marketing push. We're opening a new round right now. We want to grow faster than we are. We've got a number of stores kind of opening up in the next coming while. And we want to just accelerate growth as quickly as we can.

Dan Humiston:
And I suspect there's a lot of upfront costs in Bill needs people helping him with the sales and at this phase of your company's life. It's in a very expensive period. What kind of opportunities are there for investors to participate in this growth?

Bill Stark:
We have around right now that is just opening up. We're raising one point five million. We're shooting somewhere between 11 and 12 million dollar valuation. And we're talking to mostly D.C. and private equity funds as well as angel investors.

Dan Humiston:
That's mostly what our audience is. So I think this is one of those deals where, again, it's a non plant touching investment. So that opens the door for a lot of institutional investors who are starting to come in. I think this is a really good opportunity. We've been speaking with Jeff and Bill from the peak beyond and we'll have all their contact information on an investor information on the MJBulls Web site. Guys, this is a good one. I don't think it's gonna be open for very long. Good luck with this.

Jeff LaPena:
Thanks so much. Thank you.

Dan Humiston:
Today's show was made possible by the generous support of our sponsors, like out 36, the country's premiere block chain payment processing platform that's providing dispensaries and its customers with a safe and secure payment option other than cash. To learn more, go to all 36 dot com. Today's podcast was produced by MJ Bulls Media, the industry's premier Cannabis podcast network with original music, produced in part by Jamie Humiston.

Dan Humiston:
I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcasts.

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