Medical marijuana and commercial cannabis dispensaries are very costly to start-up, maintain and operate. While there maybe ample money flowing in, a large portion is flowing out for expenses, payroll, product, taxes, and marketing. In this article, we'll discuss a few ways dispensaries can save money and operate more efficiently.
One of the best ways to save is by investing in a powerful POS system that is able to streamline your business operations and inventory. Compliance is a key factor for any cannabis business and using an all-in-one POS unit that is capable of generating compliant labeling will be very beneficial. A quality Point-of-Sale software will also calculate tax percentages for you, saving time while also satisfying state regulations. Probably the biggest advantage of using an advanced POS system is the amount of man-hours saved keeping track of inventory.
Poor inventory management can cripple a burgeoning cannabis dispensary. It is critical for medical marijuana businesses to be smart about buying stock. One of the major pitfalls for any new dispensary is purchasing too much product. Purchasing gross amounts of flower will require more money in the long run as it will need to be repeatedly counted, safely stored, and risks expiration. We suggest investing in manageable quantities of several different varieties. This will save money and create an impressive selection for potential customers.
Cannabis dispensaries must be diligent about analyzing their sales data and product performance. Evaluating what products are selling, when they are selling, and who is buying are all strong indicators for dispensary marketing. A comprehensive POS system will keep track of these analytics, produce reports, and even host marketing efforts. Sending email and SMS campaigns promoting your top sellers will help target your customers and increase dispensary profits.
Finding a strong sales staff can be difficult, however taking the time to secure quality budtenders will help cut costs down the road. Selecting dispensary staff with years of experience will minimize the training time, increase sales, and assure customers your staff in knowledgeable. It is always more expensive to hire and train someone new so employing staff who are trustworthy, helpful, and seasoned will save you money and time.
Almost every dispensary has had to deal with product loss at some point or another. It can really throw a curve ball in your bottom line and often times leaves owners and manager feeling frustrated and helpless. While investing in prevention measures can be costly up-front, it could save thousands over a long period of time. When it comes to security it's essential to be equipped with 24/7 surveillance, a counterfeit bill detector, security guards, and a large immovable safe. These three safe-guards will make a statement to potential criminals and give you peace of mind.
Prepackaging product is a prime example of how to save money and time. Any POS system worth it's salt will be able to track each prepackaged unit serving as a safeguard against loss. Taking time to weigh, package, seal and label flower will reduce the margin of error and maintain a precise inventory. Prepackaging does require labeling so using a POS system that prints labels with custom logos, lab results, packaging date, and description will save lots of money.