The cannabis industry is flourishing in the midst of a Pandemic and shows no signs of slowing any time soon. In an industry projected to bring in 26 million in sales for 2021 alone, we bet you are looking for your piece of the pie. Redbud Advisors has a few tips for increasing your dispensary revenue for 2022.
Tip 1- Web Presence
Do you have a website? We hope the answer to this question is yes. But if not, it is time to get a website up and running for your business.
This is a great way you can keep your customers up-to-date on the happenings of your business. Not to mention this will help attract new customers to your dispensary creating additional revenue.
Adding your inventory to your website makes it easier for your customer or potential customers to see what's in stock.
Do you have a social media presence? Again, we hope the answer to this question is yes. But if not it is time to get up and running on social media.
Social media is a great way to interact with your existing customers and attract new customers. This is a great cost-efficient solution. Creating social media posts daily advertising your products and specials is the perfect way to reach your customer when they are not at your dispensary.
If you have a website and social media it is important to keep them up-to-date and relevant to your brand. Engaging your customers and followers on a regular basis is a great tool to utilize at little to no additional cost.
Tip 2- Staying Up-To-Date on Inventory
This might seem like a given but when you are running a dispensary and looking to grow your revenue it is important to have the “must-have” items on hand for your customers, eliminating their need to go somewhere else.
In addition to having those popular items on hand, it is equally important to know what your least selling products are. This will help eliminate the purchase of these items in the future and free up more cash flow for those in-demand items.
It is important to offer products at a variety of price points, low-end, mid-tier, and high-end, to meet the needs of your diverse customers. Any slow-moving products in any price point should be eliminated to shift focus to in-demand products.
Tip 3- Cost of Goods Sold
Your dispensary revenue is built in part by the cost of goods sold (COGS). Verifying your dispensary has up-to-date inventory is an important part of utilizing your COGS. Dispensaries are hardest hit by IRC 280E so it is important that inventory is counted regularly and up to date in your point of sale system. Any missed costs could cost you in tax dollars.
Work with your accountant to make sure that you are strategically and legally picking up costs to include in COGS. If you do not have an account reach out to us at Redbud Advisors, we would be happy to help.
One way is to negotiate better terms and price points with your suppliers. Keep in mind you may need to purchase a higher volume of a product to get a better discount.
Tip 4- Knowledge is Power
Being knowledgeable about your products and educating your customers will go a long way. If your customers trust you and your employees they will be more likely to try your recommendations. It is easier to upsell additional products to your customers when they believe you are a trusted resource.
Offer workshops or educational courses both in-person and online to engage the customer with your dispensary and teach them about the products they are using. Asking your customers the information they want to learn will be a great guide for where to start.
The tips listed above to help increase dispensary revenue are a great place to start. At Redbud Advisors our extensive knowledge doesn't stop there, we have plenty of additional tips up our sleeve and we even tailor them to your dispensary.
We encourage you to get to know our specialized accounting experts at Redbud Advisors for all of your cannabis accounting and tax needs. At Redbud Advisors it is our mission to help make your dreams a reality and your taxes compliant.
To get answers to your questions and expert advice you can contact Redbud Advisors here or give us a call at 866-830-5144.