The cannabis industry is massive, and those who are truly passionate about cannabis can carve out a space for themselves to make money doing what they love. The problem? In such a saturated industry, being able to serve your customers both now and in the future means making enough money to cover the costs of business and more so that you can continue to reinvest and scale it. But what do you need to do in order to see your dispensary profit and reach this point? Let’s take a look at some tips that will help you increase your dispensary's profit margin and help your dispensary thrive.
Improve the Customer Experience
While all of your unique ideas power your dispensary, the heart of your business is your customers. If new and returning customers aren’t completely satisfied with their experience, they’ll likely seek out a new dispensary in the area that will provide them with what they’re looking for. As a brick-and-mortar business (even one that delivers), retaining customers is critical to your overall dispensary profit margin. So, what should you be focusing on in order to offer a customer experience that both new and returning customers won’t forget?
- Focus on customer service, training budtenders to handle all of your customers’ needs the moment they walk through the door.
- Develop an environment that customers feel excited to be in.
- Make it easy for them to shop around and find exactly what they want when they’re not being helped.
- Create a website that’s easy to find and navigate so that customers can learn more about what they want before they set foot into your store.
- And so on…
Making sure that your dispensary profit is sometimes as simple as just listening to your customers and making minor changes that enhance their experience.
Offer Enticing Incentives
If your dispensary profit margins are looking a little low, what better way to boost sales than to offer exciting incentives to customers? If you’re focusing on loyal customers who continuously come back to your business for their favorite cannabis products, developing a loyalty program or a referral program can be a great way to reward them for their loyalty to your dispensary. If you’re looking to incentivize new customers, running well-timed promotions or offering coupons and freebies with purchases may bring more people into your dispensary. When there are incentives to shop with you, it will attract some attention and help you attract new faces.
Look for Ways to Distinguish Your Dispensary From Others
Unless there are very few dispensaries in your area, the competition between dispensaries can be intense. Setting out to offer a unique experience is critical to competing with those nearby. But how can you distinguish your dispensary from others and see your dispensary’s profit margin rise? A few tips include creating your own brand or line of products that customers can purchase, adding attractive products to your store that customers would have a difficult time finding somewhere else, or even expanding to new cannabinoid offerings (CBN, CBG, Delta-8, etc.). If you really want to see your dispensary profit margin increase, you have to take some chances and think outside the box!
Return to Your Marketing Strategy
Your marketing strategy is the only thing keeping you in business. Dispensaries face numerous challenges, and one of these is having to cater to a local audience. Creating an aggressive marketing strategy is a must if you’re focused on dispensary profit margins. Now’s the time to return to your own and see where changes can be made. Start locally, looking at both your current local SEO efforts as well as local social media to make sure you’re reaching your target audience. Then, find ways to improve word of mouth, build on your website experience to entice customers to come visit you, and see how you can increase foot traffic to your place of business.
The stronger your marketing strategy is, the easier it will be to stand out from your competition and begin boosting your profits. Remember, you don’t have to be at the very top. You just have to do better than the other dispensaries in your area!
Elevate Your Product Experience
The type of products and the experiences they have to offer impact your dispensary’s profit margin. Low-quality products can drive customers away and give your dispensary a reputation of being mediocre at best. However, high-quality products can elevate the customer experience and your brand’s reputation online and locally. One great place to get started if you want to boost dispensary profits is with products like pre rolls. Customers get excited about these types of products, and a good pre roll can really change the way people view your brand.
Here at The Cones Factory, we offer bulk and custom pre roll tubes, pre roll cones, and pre roll packaging to help you offer a better pre roll experience. Better yet, we help you boost your profits with factory direct prices, further supporting you with excellent customer service and fast lead times. We can also help you brand your products to ensure you’re not passing up on an opportunity for free advertising. Contact us today, and start increasing your dispensary’s profit margin!