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Pros and cons for offering delivery for dispensary owners

published on April 20, 2021
by James Hammer

One of the best things about living in modern times is being able to receive delivery from all sorts of different places. These days, the expansion of technology has made it possible to order things online and get almost anything you need, whether it be food, clothing, medicine, electronic devices, and so forth.

Being able to conveniently order whatever you want from the comfort of your own him is an excellent perk, and it’s become even more valuable throughout the COVID-19 pandemic. The ability to deliver marijuana may not be as simple as ordering food or alcohol to go, but it has become increasingly popular and less of a hassle in recent years. The epidemic has also assisted people with receiving their licenses far more swiftly, permitting quick access to these kinds of perks.

Legal cannabis delivery is not something most people are aware of. While some are aware that the options are available, purchasing their weed of choice from an app doesn’t seem as appealing and safe as visiting the local dispensary or purchasing some from a trusted dealer. Some people also even think that legal cannabis delivery sounds too good to be true. Even so, there are still plenty of people who rely on these deliveries to receive their daily need for marijuana.

As a dispensary owner, you need to ensure your operation continues to run smoothly even when a hurdle like the pandemic occurs. With consumers self-quarantining amid the pandemic, store owners are going to see a dwindle in their foot traffic. Fortunately, offering a delivery service is an excellent way to ensure your profit margins continue to grow and flow smoothly.

Dispensaries that implemented delivery services saw a record surge in sales from customers stockpiling on cannabis products. Experts have even predicted that moving on to an online ordering and delivery service will become more common throughout the coming years, with purchasing habits gradually shifting. Remaining competitive, you may need to pivot towards a delivery service.

Fortunately, technology has made it easier to implement software solutions that enable your dispensary to adapt to a delivery service. However, one question you need to ask yourself, is opening up a delivery service is the best idea for you? Or should you stick with the current system you have in place?

Either way, we are going to go over what you need to know about the ups and downs of offering a delivery service for your dispensary.

 

Pros of marijuana delivery

For this part, let’s go over the advantages offered to you by having a marijuana delivery system.

 

Offers sustained business

Having a delivery service in place is more likely to increase the profit margins you receive for your business. People enjoy the convenience of having their goods delivered to them and are likely to sign up to your store or app to have their orders delivered. Due to the recent pandemic, plenty of cannabis-related businesses have been declared essential business throughout the United States. That means that a dispensary will remain open as other businesses, like restaurants, are forced to shut down.

Offering this delivery will make your customers grateful to have a way of receiving their cannabis needs without having to go out in fear of the pandemic. Especially during times of restriction when people are forced to remain inside to prevent the spread of the virus. Furthermore, some people may live either too far or be incapable of going to your dispensary due to a chronic illness affecting them.

 

Delivery preference on the rise

With marijuana becoming increasingly legal in many states, more and more people are getting in on the action and ordering cannabis for recreational and medical needs. According to an article by Forbes, in 2018, people were ordering cannabis products online every eight seconds.

The majority of the people ordering online were baby boomers. Considering the age of these baby boomers, the convenience of ordering online and having their cannabis delivered to them is extremely appealing for consumers. From a consumer standpoint. With the number of issues, they may have to move around, receiving their medical marijuana from their doorstep is very appealing.

 

Locations

Dispensaries are some of the few businesses that are not widely available similar to restaurants or grocery stores. Some states have only allowed several dispensaries to open up in their locations, even with the amount of legalization they have offered. Others may simply be moving too slow when it comes to issuing permits for the open of a dispensary.

That means that there are plenty of places right now that do not have easy access to medical and recreational marijuana. By starting a delivery service, you can have your shop become the number one place for those far-off neighborhoods to receive their cannabis needs. That also offers an opportunity for others in those locations to be aware that your delivery service is available in their area. That ensures an increase in business and revenue.

 

Fastest growing market

The cannabis industry is rapidly growing into one of the most profitable industries in the United States. Already experts are predicting that by 2024 dispensary sales will reach $40.6 billion. They are also claiming that the delivery sub-market shall become one of the highest, fastest, growing streams in the market.

With the cannabis industry continuously expanding as it’s legalized all over the country, dispensaries and delivery systems will become a common commodity. That means that your dispensary needs to take advantage of this before any competitors decide to take their chances.

 

Cons of marijuana delivery

As excellent as including a delivery service to your dispensary can be, there are some disadvantages that you need to be aware of when it comes to implementing it.

 

Sizable capital expenditures

Setting up a delivery service will cost you a heft of some cash to set everything up. It all comes down to how well your business is doing overall. There a good chance that you may not be able to afford to start a delivery service without severely impacting your finances. Moreover, the infrastructure for setting up a delivery business can be a significant step depending on your state’s requirements, and getting everything set up could cause you somewhere between $10 to 80 thousand dollars.

Let’s not forget the steps required to ensure you hire reliable people who are capable of delivering the goods to their customers. That can be challenging to pull off because of state regulations. Fortunately, there are ways to get around this. The option to use a third-party delivery service is available, which means you can partner up with them for the transition. Or you could offset costs by having customers pay a much larger fee for the service.

 

Local challenges

Some locations are better suited than others when it comes to delivering services, and the local area you operate could fall under the latter category. If the population density and geography are not favorable for you, the idea of setting up a delivery service may not be ideal. A mailing service could hurt your revenue stream, and if another delivery service is already thriving in your area, it could be challenging to enter the market.

 

Long wait time

While receiving tons of orders can seem like an excellent thing for any business, it could lead to a long waiting time for your customers. Some delivery services could offer a definite time when the goods will be delivered while others may offer a broader amount of time. That can make it challenging for customers to know when they are going to receive their cannabis. Sometimes delivery can even take an entire day depending on the black log and amount of drivers a delivery service has at hand.

Issues like these could cause your customer base to become unhappy with your service and even leave scathing reviews on your site and other platforms.

 

Is cannabis delivery legal in your state?

If you are thinking about including a delivery service in your business, you need to research a few things. First, you need to figure out whether it’s legal for you to stare at a cannabis delivery in your state. If so, you need to read up on the rules and regulations concerning your local and state.

The laws for a cannabis delivery service vary from state to state. For instance, medical marijuana delivery is legally allowed in the state of Massachusetts, but recreational delivery is still denied for the time being. However, places like California and Oregon have made it legal to deliver weed regardless if it’s for recreational or medical reasons.

Before you make any serious decisions about starting a delivery service, make sure to check with both your state and local regulators. Doing so will ensure you entirely understand the rules and regulations related to delivery and ensures you remain legal before moving forward with your plans.

 

Conclusion

Delivery services can be an excellent addition to your dispensary business if it is a viable option for you. It offers more opportunities for your business to increase its profit margins and gain more customers over time. Make sure to take some time to do some research and note down if your business can expand into the delivery market space.