How Much Does the Average Dispensary Earn in One Day?


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Contributor: Jon Baron

OVERVIEW

Have you ever been standing in line at your local dispensary, and while waiting to purchase your favorite cannabis product, you start wondering to yourself, “How much does this place make?” Well, I’ve often wondered the same thing. There are many factors involved—as with any business—the amount of stock they carry, the number of customers who visit daily, the average sale amount, and many others which will be discussed further in this article. To find the average dispensary profit margin, we must use data, and data does exist for these factors, but the latest and most comprehensive is from 2018. The 2019 numbers have not been complied as yet (and may not be for some time), so for the sake of this discussion, the 2018 figures will be used. However, there are projections for future sales numbers. For 2020, projections are solid for continued growth in the cannabis industry with sales reaching or exceeding the current levels. On the national level, projections are even higher for 2021 as more states pass legislation legalizing recreational usage.


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How Much Does the Average Dispensary Earn in One Day?

A smaller dispensary, such as a local Mom and Pop business, will make nowhere near what the larger operations make. A smaller dispensary that does not grow its own product(s) will not have the overhead of a dispensary that has its own growing operation, but the smaller dispensary will probably not have the customer base either. Another factor to consider is whether or not the dispensary offers both medical and recreational marijuana products. The medicinal marijuana profits have always been substantial because of the guaranteed repeat customers who need their cannabis on a regular basis, and repeat customers are the bread and butter of any successful business. Owning a dispensary can indeed be a complicated undertaking, so when discussing dispensary profit margins, it’s best to use national averages. That way a more comprehensive understanding of just how much a dispensary, and dispensary owner can make is arrived upon.

According to an article written by Gary Cohen,[1]many factors are involved when figuring out profit margins for dispensaries. The opening costs of the store is one of the critical elements because if money was borrowed to open the dispensary, the repayment amount of the loan is taken right off the top of the month’s sales receipts. Other factors include employee’s pay, utility costs, market size, inventory costs, and competition. The cannabis market is highly competitive, so a good marketing strategy is essential to making marijuana profits. His article also states that a dispensary owner who has over five million in annual sales, can make an annual salary of five hundred thousand dollars! (Cohen, 2018, 2019).

How Much Does the Average Dispensary Earn in One Day?

So, the daily haul for this size of a dispensary would be about thirteen thousand seven hundred dollars! A smaller dispensary averaging about one million in annual sales would make about twenty-seven hundred dollars daily. Still not too bad for a day’s work! Weed profits are pretty good! But as with all business ventures, not all dispensaries are successful, however, most of them are. It takes careful planning, marketing, and even a bit of luck to make a profitable dispensary.

NATIONAL AVERAGES

In an article written by Anna Johansson in March 2018, and published by the Green Entrepreneur website,[1] Ms. Johansson gives us some critical information when discussing how much dispensaries and dispensary owners make.


Fifty-two percent of Americans have tried weed at least once, and over sixty percent favor legalization of marijuana for adult consumption (Johansson, 2018). These figures are staggering! Can you imagine starting a business where you have the opportunity and potential to cater to sixty percent of the adult market? Wow! This is truly an entrepreneur’s dream! Yes, there are many other factors to consider, but the market is there.

Also cited in Ms. Johansson’s article was the average profitability of American dispensaries. According to Marijuana Business Daily’s 2016 Marijuana Factbook, the average dispensary makes nine hundred seventy-four dollars annually per square foot of dispensary space. So, what does that really mean? That means that dispensaries are making, on average, about the same as a Whole Foods store makes in a year. When making comparisons to other businesses, consider that the average retail or department store makes about one hundred eighty dollars per square foot of space (Johansson, 2018).

How Much Does the Average Dispensary Earn in One Day?

OTHER FACTORS

As was mentioned earlier, in order to have a successful, profitable dispensary, many other factors are involved. Perhaps the most important of these is inventory. What the dispensary actually sells to its customers is what’s going to pay the bills! (And pay the dispensary owner, too).

Many of the larger dispensaries have their own growing facilities and supply not only themselves, but some of the smaller dispensaries who do not have the space or resources to produce their own weed. The growing of cannabis is a business unto itself and can be quite lucrative, but by having its own growing facilities, a dispensary can do away with the middleman and thus increase profitability. However, now one must consider, electricity, greenhouse costs (seed, fertilizer, employees to trim and harvest) and marketability of the strains produced. A marketing plan must be in place and monitored and adjusted regularly. And we thought all they did was sell the crop! There is quite a lot involved with the owning of a dispensary.

Another consideration mentioned earlier, was the sales and profits of medical marijuana. This is an industry that has been around since several states passed laws allowing medical marijuana consumption during the 1990s. To have a truly profitable dispensary, one would want to offer both to its customers. Medical marijuana may be even more profitable because of the returning

consumers who need their prescriptions filled on a regular, timely basis. And the medical marijuana industry has been around for many years.

When you go into the dispensary, they are certainly offering a lot more than just your favorite bud strains—they have complete lines of many other products, too. Vaping products, CBD products, hashish products, edibles (and in your larger dispensaries, many other product lines, too) all catering to their customer’s wants and needs.

How Much Does the Average Dispensary Earn in One Day?

How much inventory is necessary to have in stock? Hours of operation? Daily specials? Loyalty rewards? A marketing plan would include all of these factors no matter how big or small the dispensary, these are all important considerations. Careful planning along with hard work and maybe even some good luck are equally important to profitability.

There is a lot involved with having a profitable dispensary!

FINAL THOUGHTS

How much does a dispensary make in a day? There are many contributing factors involved, but with all the right components in place, a dispensary can earn handsome profits—daily, weekly, and yearly.This is a booming industry, and although it may be a little slower right now because of the times we’re in, this industry is not moving any direction other than up. As more and more states legalize recreational marijuana consumption, this trend will continue.

Start-up costs, inventory, market size, stock on hand (and on order), employees’ wages, and so on, all have a part in making a profitable dispensary. It boils down to having a plan in place and having the wherewithal to alter and adjust that plan on a regular basis. And of course, and maybe most important, one must have a good customer base that visits your facility for their particular needs.

How much does a dispensary make in a day? This is a question whose answer will vary from dispensaries small to large. No two will make exactly the same, but the trend is growing, and it appears that it will continue to do so. One thing is certain: they usually make quite a lot!


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