While the COVID-19 pandemic has caused substantial revenue drops in hospitality and most retail segments, the emerging cannabis space has seen sales increases of as much as 30%. With success come challenges as cannabis dispensaries struggle with issues around cash management, inventory and POS systems.
In most states where marijuana is legal, cannabis dispensaries have been deemed essential during the pandemic. However, the industry is highly regulated, and non-compliance can lead to losing a dispensary license. In addition, the industry is cash-based, creating serious cash management challenges. These issues were among the topics of a Weedtech virtual panel discussion hosted by APG Cash Drawer. Panelists addressed how to apply best practices and technologies to overcome industry challenges.
As the pandemic progresses, it has forced retailers to rethink their approaches, specifically in the order-taking and delivery areas. Panelist Brady Miller, who is founder, President and CEO of Dauntless, said cannabis dispensaries have had to do the same. For instance, they are grappling with how to manage an increase in online orders of up to 35% and how to execute touchless transactions in a cash-based business.
Dauntless, he said, is providing technology to help dispensaries better manage their business, including systems with seed-to-sale traceability and POS solutions. “We have a consumer-facing screen where they can see the transaction in the process (and) the charges that are being added,” he said. As items are tallied, recommended upsells appear on the screen, which have contributed to a “60% increase in average ticket.”