The cannabis market is enjoying explosive growth. Estimated at $28 billion in 2021, it is on track to reach $198 billion in 2028. For resellers serving the market, this translates to substantial opportunities to sell POS Solutions, including cash management, into the cannabis dispensary market (or vertical).
Cannabis is a cash-dominated industry, so dispensaries need robust POS and cash management solutions, lest managers spend hours at the end of each day counting and reconciling cash. This need presents a good starting point for the conversation between a reseller and a dispensary owner. As trusted advisors, resellers need to emphasize system reliability, the total cost of ownership (TCO), and return on investment (ROI).
Reliability and TCO
When it comes to dispensary hardware such as POS cash drawers and printers, itâ€™s important to consider factors such as frequency of use. In a business that functions almost exclusively on cash, dispensaries need heavy-duty POS systems that can withstand frequent use. The same goes for printers that must print receipts throughout the day with each transaction. No matter the point-of-sale system, dispensaries will want robust peripherals that can withstand frequent use.
An owner may be tempted to use price as the deciding factor in buying dispensary hardware, so resellers need to make the case for equipment longevity, TCO, and ROI. Obviously, the more durable the equipment, the better ROI and TCO it will deliver. The goal from the resellerâ€™s perspective is to sell the most reliable solution to avoid having to make frequent trips to the customer site for troubleshooting. This helps protect the resellerâ€™s brand, strengthen the trusted advisor role, and save both the reseller and company the costs accrued by hardware malfunctions.
Future-Proofing the Business
Resellers also need to discuss with dispensary owners how to future-proof their businesses by selecting the right POS for dispensaries. Owners tend to focus on product and product quality, but they donâ€™t always think about POS, digital signage, or preparing for the eventual need to process credit card payments. Resellers can strengthen customer relationships by keeping future needs in mind.
Resellers should educate dispensary owners about the potential of a technology ecosystem. Dispensaries should have a technology strategy that includes POS, digital signage, security, and monitoring capabilities. They also need a hardware strategy that can grow with the business and a software solution that meets all state and local regulations.
Resellers can help owners prepare for future needs by steering them away from just a standard cash register that cannot accept electronic payments. Currently, federal law prohibits cannabis sales, which makes it harder for dispensaries to get banking and forces them to work as cash businesses. If the law changes, dispensaries with systems that support non-cash transactions can simply start processing them. Those that are set up to accept only cash would have to make further investments in systems to support non-cash transactions.
Resellers also can help dispensaries with future-proofing by introducing them to analytics solutions to help identify sales trends and deliver important information about patrons. Owners can use data insights from new dispensary technology to refine their sales strategies and launch promotions that keep patrons coming back.
Focusing on things like ROI and TCO are an important strategy to build credibility with the executive leadership of the dispensary; positioning yourself as a long-term business consultant with dispensary decision-makers. Credibility is essential to building these long-term relationships. Resellers donâ€™t need another phone call about parts and features; solidify your reputation as a trusted advisor that brings expertise, skill, and a customer-focused mentality to every conversation.
For instance, a dispensary owner may not realize there are cash management solutions and advanced dispensary POS systems that can make their lives easier. Introducing the customer to these solutions shows the reseller understands their business and wants to help make it easier to run.
Cannabis remains a young market with lots of growth potential. Resellers that establish themselves as trusted advisors to dispensaries have a real opportunity to grow their business along with their customers as the market expands.