August 18, 2016 | by Staff
Running a cannabis dispensary is no easy task, but if it is done correctly it can be very lucrative and very rewarding. However there is tons of competition, the customers are getting harder to please and modern dispensaries are finding that they cannot simply rely on the popularity of marijuana in pop songs to keep customers coming through the door. Fortunately there are several things that cannabis dispensaries can do to help ensure success in their operations. Below are four of the top tips for how you can run a successful dispensary and cash in on the green rush.
When running a cannabis dispensary it is important that you know what the laws of the state where your store is have to say about cannabis. Obviously you should not operate a dispensary in a state where cannabis is illegal. You should familiarize yourself with the state’s marijuana laws and make sure that your cannabis business is not breaking any of them.
Is it legal to sell recreational marijuana in your state, only medical marijuana or both? Are there any limits to how much cannabis you can have on hand at the store location? These are important questions that you should know the answers to. If you don't know, you are taking a huge risk that could see your business falling on the wrong side of the law. Learn the law and keep your business on the right side.
In most cases the state laws will require for a cannabis related business to acquire specific licensing or other documented permission in order to operate. Check with your local municipal office or your state’s government website to find out exactly what the requirements are as they will vary in each different state. Apply for and obtain all required permissions before you open your cannabis retail store for business to the public.
Even though you are selling marijuana products this does not give you a free card to be unprofessional when operating your dispensary. The store staff will all need to be properly trained and ideally they should not be allowed consume marijuana on the premises. The first impressions that customers will get if they enter a cannabis retail store and see the staff smoking joints is not a positive one when compared to a scene where they enter to find friendly, well-dressed and sober staff members waiting to serve them.
The rap artist Biggie Smalls said it best when he said ‘never get high on your own supply’. Encouraging staff members to partake in the products on sale in the dispensary will not only give customers a bad impression, it can also lead to high incidents of internal theft. Aim to provide a professional environment in your dispensary where customers will feel comfortable and treated professionally. This will improve the success of your business as you will create more repeat customers and acquire more new ones via positive word of mouth advertising that is free of cost.
As the cannabis industry does not yet have the full support of the majority of the nation's financial institutions, cannabis businesses are faced with the specific issue of how to process cannabis payments such as debit and credit cards from customers. This issue has been hounding business in the marijuana industry since its inception and most end up choosing the path of a cash only operation to compensate for the lack of credit payment processing options.
The cash only model works for the most part, but in an age where people prefer to pay with their cards or digital wallets like Apple Pay, it can be an inconvenience when a business only accepts cash. Some cannabis dispensaries put ATMs inside their shops so that customers can use their cards to get cash just before they make are purchase.
To run a successful cannabis dispensary you will either need to find a financial institution that is willing to accommodate a marijuana related business, or explore the various alternatives and find one that will service your customers and your business well. The ability to process non-cash payments will help your store to a wider variety of customers and increase sales.
If you are going to successfully sell cannabis products, they will need to be of the highest quality. Although the plant is only legal in some states, in the states where it is legal the competition is increasing daily as more businesses enter the market. For this reason it is vital that your business uses cannabis of very high quality so that it can remain competitive.
Take a good look at your top 2 or 3 competitors ...what are they doing that you are not? Is there anyway you can improve on their best practices? In highly competitive businesses you have to be as good as, or better than the competition if you are to succeed. Do the necessary market research, find out what the industry standards are in your local market and either match them or raise the bar.
The packaging of your cannabis products is also important to the success of your business. Not only do you need to offer high quality products, you should also package them professionally, neatly and attractively. Your product packaging should also make it clear that they contain cannabis, in what form and strength. Any other important instructions for safe consumption should be prominently displayed on the relevant products as well.
These 4 tips, if implemented, can really help a cannabis business to improve its services and make more money. More business are entry the cannabis industry everyday and as more states change the legal status of the plant, even more will be out to get their piece of the green pie. Now is a great time to operate a cannabis dispensary when the demand is so high and people’s interest peaked around the topic of marijuana, but care has to be taken and the business strategically planned if it is to realize its true potential for profit.
Categories: Cannabis Dispensaries
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