This is especially important in emerging markets. Whenever possible, keep two years worth of operating expenses set aside - or at least access to two years of financing. The stores that could respond with infrastructure modifications and new technologies weathered the storm their cash-strapped peers, however, struggled, and many will fold in the coming year. The COVID-19 pandemic proved that by inflicting costly changes to how dispensaries operate. It’s hard to sustain a cannabis retail store on a shoestring budget. They steer the ship in anticipation of the economic and regulatory changes that are certain yet unforeseeable. The successful retailers we’ve worked with keep a constant eye on their P&L and their balance sheet. Running a cannabis retail store can be a lot of fun, but it’s still a serious business. It upsets the balance of the customer experience and calls your brand's personality into question. The reverse is true too: if you offer a customer experience focused on value pricing, you won’t want any touchpoint to be incongruently lavish, such as an uber-luxurious waiting area. If you’re offering an upscale shopping experience, you don’t want one touchpoint to be the weak link in the chain, like an exit area that’s filthy or unsafe.
Every touchpoint of your brand experience needs to have the same quality and character.
If you can’t “step into your customers’ shoes,” your customer experience will suffer. Great brands know their customers inside and out. Many compliance concerns are resolved within the software via advanced reporting features and regulatory integrations. Your cannabis-specific POS system can help too. When statutory changes occur - and they will, no doubt - a quick change to your SOPs lets you maintain compliance with confidence. He or she will organize your standard operating procedures (SOPs) and make sure employees are acting accordingly at all your locations. In fact, you’ll probably want a designated staff member just for compliance. You’ll want systems in place to limit your exposure to compliance violations. Retailers cannot cut corners, and they certainly shouldn’t try to circumvent the law. Because cannabis was illegal until recently, the regulations are strict and the red tape is thick.
Cannabis retail isn’t like running a clothing store, a restaurant, or even a liquor store it’s much more intense. Retailers must work with regulators to improve public safety - and ensure the safety of their business licenses. Now, the cannabis stakeholders need to play nice with the law rather than “fighting the power” or “resisting The Man.” Compliance is the new name of the game.
Marijuana’s days as a counterculture mainstay are long gone. Get more real-world intel on the secrets of cannabis retail success! Check out our eBook, “ Why Some Cannabis Retailers Fail.and the Secrets of Those Who Succeed. This blog shares some of our accumulated wisdom and reveals the deadly shortcomings of those who fail and the qualities of those who succeed. We’ve seen what works and - just as importantly - what doesn’t. If not, the gravitational pull of “retail fail” may prove to be too strong.Īt Cova, we’ve worked hand-in-hand with more than 800 retailers to develop our industry-leading POS. When you have what it takes to perform well in those areas, your chances of success skyrocket. But the truth is, there are only a few critical areas that make the difference between success and failure, and they’re not esoteric. It may seem like some retailers know the secret of success. Are you opening a dispensary or cannabis retail store? Or reassessing your current store to make it more profitable? If so, now’s the time to take a step back for an objective self-assessment.