Member Blog: Unleashing the Green Revolution – Empowering Cash Management in the Cannabis Industry with Automated Bliss
For most cannabis business owners, the abundance of cash poses a never-ending cash management challenge. Owners, staff and financial teams must navigate the complexities of managing and securing large cash volumes with limited access to banking relationships due to the federally illegal status of cannabis. Most dispensaries resort to manual cash handling and counting, however, every time cash is counted manually – typically around six times a day – dispensaries face the risk of miscounts, theft and security threats as well as challenges in tracking volumes, reporting changes and supporting audits.
Handling cash manually is inefficient and unsustainable for new and established dispensaries. Forward-thinking cannabis retailers are turning to automation solutions that transform the collection, counting and reconciliation of cash volumes in a retail setting. Cash automation offers a solid, systemic alternative to the typical cash handling processes.
One medical dispensary in D.C. incorporated cash automation to help with the time-consuming manual counts and to improve productivity. This dispensary, the largest and oldest in Washington, D.C., accounts for 54% of the cannabis sales in the city and accepts multiple payment methods. Cash comprises 40% of sales and is a major pain point for the dispensary’s managers and associates.
Since implementing cash automation solutions last year, the dispensary has improved count accuracy, reduced discrepancies and saved time for its staff, who now can service the 400 – 900 patients who visit each day instead of counting cash for hours on end. Additionally, automation has been a game changer for the dispensary’s accounting team. The finance team can view the exact volume of cash on hand remotely and in-store, informing important business decisions for cash planning, including leveraging available cash on hand for product and services payments and optimizing change order and deposit schedules to reduce armored security and bank costs. Real-time reporting and visibility empower the finance teams to manage cash operations with confidence.
Other benefits include:
User-friendly dashboard with cash flow visibility integrated with accounting software.
Notifications on urgent needs, including hardware performance issues, deposit capacity and placing change orders.
Easy, mobile access to cash balances and transaction history across multiple locations.
Customizable reporting capabilities for auditing, vendor-specific transactions and overall analysis of every transaction by user/payee, amount and date.
Security measures to ensure efficient cash counting, balancing to POS and securing cash with high-speed recyclers.
With automation capabilities, cannabis businesses can focus on operational efficiencies, bolster inventory management and systemically ensuring process compliance instead of the time-consuming counts that typically overwhelm employees. As the cannabis industry continues to evolve and expand in 2023 and beyond, embracing cash automation allows dispensaries to thrive while reducing costs and labor and maintaining control over their cash ecosystem.
Member Blog: The 6 Technology Tools Every Multi-Location Dispensary Needs
As amulti-location dispensary owner, you know that the industry is expanding quickly. With more people choosing to buy and enjoy cannabis and there’s no sign of this trend slowing down. And as the demand increases, so does the opportunity to scale single-store dispensaries, into multi-location establishments.
Dispensaries like Tokyo Smoke and Cookies now have multiple locations in different countries and states, and lesser-known Mom and Pop cannabis retail stores are here for the expansion and boom as well, but if you own or operate a multi-location dispensary, you will need specialized tools to stay compliant, lean and effective.
What is a multi-location dispensary?
A multi-location dispensary is a marijuana dispensary with at least two locations. In other words, it’s a chain of dispensaries.
Multiple dispensaries serve more people by increasing convenience and accessibility. These dispensaries have branches in other cities, states or countries, or even different locations in the same city.
The benefits of having multiple locations over traditional single-location dispensaries are numerous. You can:
Offer your services to more people
Increase your brand awareness by being present in more places
Streamline processes like billing and payroll across multiple locations
Reduce overhead costs by not having to maintain as much human capital in each place
What are dispensary technology tools?
Dispensary technology tools, or dispensary software, are the software and hardware that help dispensaries manage their business.
This could include inventory management, an e-commerce website, POS systems, and finally, people management tools like dispensary payroll, HR, scheduling, and time tracking to manage their employees and staff.
Why do you need unique tools when running a multi-location dispensary?
When you’re running a multi-location dispensary, it’s more important than ever to stay organized. You need tools that can help you manage people and systems, inventory, and finances in a cohesive way.
It’s also helpful to benchmark things across your locations and gain insights into each market’s uniqueness.
For example, let’s say you have two locations – one in California and one in Colorado. You can use your analytics tool to see which products are more prevalent in each state or even which days of the week are busier for each location.
You could also compare how much inventory you have at each location and see if there are any patterns between them. Maybe one place sells out of product more quickly than another? The information will help you make better business decisions about where to open new dispensaries or how to improve existing ones. Here are the top 6 tools we recommend for any multi-dispensary operator.
1 – A POS system that works across multiple dispensary locations.
A POS system that works across numerous dispensary locations allows you to manage your business from a centralized location rather than log into each place individually. With the system, you can track inventory across your sites and make sure everything stays in sync.
And while most POS systems have some level of integration with other applications, here are three key integrations to look for:
Track and trace: The ability to track a product from origin through distribution, so you know exactly where it is at any given time.
Dispensary workforce management: The ability to view employee hours and schedules across multiple locations. The feature will ensure that everyone is working as efficiently as possible.
Dispensary payroll software: A payroll application that integrates with your existing POS system so that employees can clock in from anywhere with just a few clicks!
What is a dispensary POS system?
Dispensary POS systems are the backbone of any multi-location dispensary. They help you track inventory, manage employee hours and shifts, and keep track of customer purchases.
They’re also the first step in creating a successful business by enabling you to do things like:
Track product inventory across multiple locations
Manage employee pay, hours, and shifts
Keep track of customer purchases in real-time (to see what products people buy)
Many dispensaries use POS systems to track medical and recreational marijuana products and their sales metrics. A good dispensary POS system will keep track of inventory levels across all your locations. It will also monitor customer traffic at each location.
What to look for in a POS for multi-dispensary locations.
When you run a multi-location dispensary, it’s crucial to have a POS that can handle the unique needs of your business. Here are some of the most important things to keep in mind when shopping for a POS.
Easy to learn
When running a multi-dispensary location, you need software that’s easy to learn. It should be intuitive, with clearly labeled buttons and a simple interface. There are many options out there that meet this requirement. Some even come with a training program or video tutorials.
Compatible with the current system
You will want to make sure the new POS software is compatible with your current system. It saves you the additional work of switching over. The POS software should integrate with your existing POS hardware and provide real-time data transfer between devices.
Integrates with a payment processor
A good POS will be able to integrate seamlessly with your payment processor. It should have features that process transactions quickly and easily without any hassle from either the seller or buyer.
Customer support
When you have multiple locations, it’s vital that your customers can quickly call or email customer support if they have an issue—and that the support team is responsive and helpful.
Support for multiple currencies
If you’re operating in multiple countries, you’ll want to find a merchant solution that supports multiple currencies so you can accept payments from overseas customers with ease.
2 – Consistent payment systems.
Consistent payment systems are one of the most important things to have in place for a multi-location dispensary. The first thing you need to do is decide the types of payments you will accept.
The payment system can be as simple as cash or debit card, or it could include ACH transfers and cryptocurrencies. The key is to choose available options in all of your locations, so customers can pay no matter where they are.
It also helps to ensure that all locations have the same system for accepting payments. If one accepts cash-only, but another accepts debit cards and credit cards, this can create confusion and frustration for customers who travel between locations.
Finally, it’s essential to ensure that each location has access to its accounts to process its sales and deposits without having to go through a central office or owner each time there’s an issue.
Here are some examples of options for consistent payment systems:
Cash: some dispensaries only accept cash as a payment method. If you only accept cash at one of your dispensaries, then make sure there is an ATM nearby because it may not be convenient for customers to drive elsewhere to use an ATM.
Debit/Credit Card: Debit and credit card transactions are fast and easy for customers because they don’t have to wait for their bank account balance to transfer into their checking account before purchasing.
Cryptocurrencies: Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are often used by dispensaries because they offer high levels of privacy, security, and anonymity for users worldwide. Because these ‘coins’ don’t require any middlemen to oversee their transactions, they are ideal for businesses that want their payments kept secret from third parties.
ACH transfer: This electronic system allows you to transfer funds from one account to another without physically moving money or checks through the mail. It’s usually an automated process, so you don’t need any specialized training or experience with the system to use it effectively.
Point of banking: A Point of Banking system allows you to accept credit cards through a single point of sale (POS) terminal located at each location. This means that your customers can pay with their credit card wherever they go — no matter which place they visit.
It is essential for multi-location dispensaries as they often hire across multiple locations. It’s necessary to have an HR for multi-location dispensaries that helps you manage your hires to make sense and keep everyone on the same page.
To keep track of employees, you might want to find out who has worked at which locations during a particular period. This information will help you keep track of your company’s workforce and ensure that former employees are not applying for jobs at new locations.
Another benefit of this type of software is that it will help you share information more efficiently among managers by storing essential documents like applications or resumes in one place.
Finally, with dispensary HR tools, you can utilize systems like applicant tracking tools to hire for one dispensary, and not the other. You can also set up alerts when someone applies for your dispensary who has previously worked at a different location, and was let go.
4 – Workforce management to save time and money.
Workforce management software can save you a lot of time and money by allowing you to manage your staff at each location better. It allows you to track your employees’ performance, schedule shifts and vacations, view employee information, send messages, and more.
Here are other reasons you need a workforce management software for your multi-location dispensaries:
Dispensary scheduling software will integrate with your point-of-sale system to forecast your schedules via machine learning. It helps you better plan for staffing needs in the future.
Scheduling software can integrate with facial recognition time tracking technology, providing alerts to business owners when employees clock in outside of assigned work hours.
Scheduling for multi-location dispensaries with a lot of employees is complex. However, scheduling software can easily sort out staff on multi-location shifts, so that they show up at the right place at the right time.
Easy toggling between locations to manage staff: if you use integrated multi-location dispensary technology, it’s easy to manage many locations, and time clocks, from the same laptop by toggling between locations. Providing you with a birds eye view and helping you automate your operations.
5 – Inventory management that is consistent yet flexible.
Inventory management is a crucial component of the success of any multi-location dispensary. It’s vital to track what’s happening at each dispensary location.
However, you should be able to review items that sell better at specific locations and see how they’re performing overall. This way, you can ensure you’re not stocking too many (or too few) of each item. With this feature, your customers will have the best possible experience no matter where they go.
Inventory tracking software is one of the essential tools that any dispensary needs. It’s a great way to ensure that all locations use the same naming conventions for their products. It helps you offer your customers the best possible experience no matter where they go.
For example, suppose you have an edible called “Banana Bread” in one place and “Cinnamon Roll” at another location. It may be difficult for employees or customers to know what they’re getting when they order the product by name alone.
The best inventory management systems take into account the needs of your business and your customers. They can be used on a small scale or scaled up to manage massive amounts of products across multiple dispensaries.
6- Payroll software for multi-location dispensaries.
Managing payroll for multi-location dispensaries is a tough nut to crack. You need to keep track of all the employees at each location, their hours worked and paid, benefits and compensation, and their taxes.
The good news is that there is specific payroll software built for cannabis dispensaries that can help you manage all those details without too much trouble.
One recommendation would be to choose a payroll provider with service in all the geographic locations you have your dispensaries. This way, you can pay staff across the board instead of manually. The automation will help ensure your payroll tax and overtime calculations are accurate.
Many companies are turning to dispensary payroll software that integrates with HR, time tracking, and scheduling software, to help streamline processes and save time.
What do the experts say?
The most important thing to consider when choosing a dispensary solution is how you want to run your business. However, many multi-location dispensary experts advise keeping it simple. A simple system lets you track sales and inventory. As time goes on, you can add more features. The best way to simplify your dispensary operations is to use a dispensary POS system that integrates with your dispensary payroll, HR, and workforce management for streamlined operations.
In addition, choose a technology that works for everyone in your organization. Make sure everyone is comfortable with whatever product or service you choose before moving forward with implementation plans.
Author Tommy Truong is the CEO at KayaPush; the cannabis software helping dispensary owners manage their employee HR, scheduling, and payroll. KayaPush also integrates with leading dispensary POS systems. Tommy loves hot sauce, fried chicken, and running with his Boston terriers.
Optimize your operations with KayaPush. We hope this article has helped you learn about different dispensary software tools and tech for managing multiple locations and the different ways you can overcome the challenges with multi-location dispensary management systems. If you are looking for a compliant and integrated solution to manage your multi-location dispensary chain, check out KayaPush.
KayaPush delivers a more innovative, unified compliance solution that meets payroll and HR needs without compromising speed and accuracy. Implementing KayaPush will save you time and money and help eliminate the financial risks associated with non-compliance.
Service Solutions | 10.26.21 | Capturing the $27 Billion Opportunity in Legal Cannabis Manufacturing
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Tuesday, October 26, 2021 we were joined by Aptean, an industry-leading cannabis technology company, for an in-depth look at the key obstacles standing between cannabis manufacturers and profit margin.
The legal marijuana manufacturing market will grow by $27 billion over the next three years. But as opportunities increase, so does competition. To be at the forefront of this dynamic sector, you need to move fast – and run lean.
So, how can your manufacturing business improve speed and efficiency of production to maximize profit? Without compromising on product consistency, quality and control? And how can you run a transparent, accountable, compliant operation, to continue building consumer confidence in cannabis products? Discover the answers in this webinar!
Aptean’s cannabis manufacturing expert, Daniel Erickson, will outline how you can break through operational barriers to increase productivity, by taking a digital approach to manufacturing using new-to-market cannabis ERP software.
In this session, you will learn how a digital manufacturing strategy will enable your business to:
• Maximize crop yield and quality using online cultivation management tools
• Improve traceability for complete compliance and quality control from seed to sale
• Increase employee security, productivity and all-round motivation
• Easily diversify into new legal cannabis products to enhance your business revenue
Panelists:
Daniel Erickson
Senior Project Manager
Aptean
Member Blog: Want to Open A Dispensary In Oklahoma? Here’s What You Need to Know.
In Oklahoma, the cannabis business is thriving. Yes, the controversial plant that users were prosecuted for using so very recently, is on a roll. You could even say, there is a cannabis rush.
In this article, we will cover how you can go about opening a dispensary, including how to acquire a license, and some laws you should be aware of. And we will also touch on how to set up your dispensary operations and software! Let’s dig in!
What do you need to open a dispensary in Oklahoma?
The process of opening a dispensary should go smoothly if you fill out an application form and follow the Oklahoma Medical Marijuana Authority’s guidelines. Although the costs of opening a cannabis dispensary in Oklahoma are significantly lower than elsewhere, it is critical to have accurate information and to review some of the most relevant regulatory constraints.
Let’s start at the beginning, if you intend to learn how to open a dispensary in Oklahoma for commercial purposes, you must be at least 25 years old before proceeding. You must also make the following items available:
Proof of Oklahoma residency
A tax ID number, as well as a general business license
Valid identification documents
You’ll need to assess your commitment after you’ve got everything in place. Not only must you be informed of current cannabis production and sales regulations, but also of proposed legislation and revisions that may shortly come into force.
Now that you’re certain you’re ready to make this big move, it’s time to proceed to the next step: finding a suitable property.
You should check the following:
Rent cost
Cost of license
Licensing application fee
Employee salary
Transportation and storage of product
Security
How to get a dispensary license In Oklahoma.
Licenses for growers in Oklahoma come in the form of a certificate and are issued through the OMMA website. The charge to producers, processors, and dispensaries for applying for a license is $2,500. You must provide the following to apply:
A business plan
A financial plan
An inventory control plan
Patient education
Record keeping
Security plans
There are distinct rules in every state in the United States about opening dispensaries. Each state sets its own standards. You will need to study the rules that apply in Oklahoma.
The general requirement for opening a dispensary in Oklahoma is that you undergo marijuana dispensing training and acquire a license.
How to keep your dispensary compliant in Oklahoma.
You must abide by all of Oklahoma’s strict marijuana regulations to keep your dispensary compliant. These include:
Marijuana dispensaries in Oklahoma are prohibited from selling more than the following amounts in a single transaction:
Three ounces of cannabis
Concentrate of one ounce
72 ounces of cannabis
Oklahoma dispensary owners, like any other legitimate business, must pay taxes and ensure that they give the following information:
All cannabis-related information with other permitted firms
Details of batch numbers that show the weight of cannabis acquired at wholesale
The number of plants that have been approved for relocation to other locations
Batch numbers showing the weight of cannabis sold
Record of all items that have become obsolete
Substantial fines are imposed for noncompliance. There is a $5,000 punishment for a first infraction while a second offense will result in license revocation. Because of this, you are going to need the assistance of technology to automatically update you if the OMMA cannabis rules change.
Understanding Metrc in Oklahoma.
Metrc is an integrated system for tracking and tracing marijuana products in real-time. Every plant and its wholesale shipment has a unique tag attached by licensees. To uniquely identify each plant, these tags use readable text, barcodes, and radio frequency identification (RFID) chips for easy identification.
Metrc is already being used in Oklahoma following the state’s legalization of marijuana. The OMMA can only see and track inventory once it has been entered into Metrc by a commercial licensee.
To get started with Metrc in Oklahoma you should:
Watching their training videos and schedule training.
Request online access and complete the New Business System Metrc training with your dedicated Metrc Account Manager.
Connect all of your employees with Metrc and make sure they have the permissions they need for their jobs.
Request Metrc plant tags, package tags, and other UID tags and document the physical receipt of requested Metrc UID tags.
Assign UID tags to your cannabis items.
Access the Beginning Inventory Guide in Metrc for proper guidelines and references to other important factors.
What are the dispensary laws in Oklahoma?
Cannabis laws in Oklahoma are the guidelines that every cannabis dispenser must heed while dispensing medical marijuana. Every prospective cannabis retailer will be guided by these same rules, and it is one of the first things you discover when learning how to operate a dispensary in Oklahoma.
Some of these rules include:
To legally sell cannabis, you’ll need a state-issued license, but CBD oil made from industrial hemp is permitted without one.
Patients must first obtain an authorized medical marijuana card to acquire and consume medicinal cannabis.
Possession of paraphernalia is a misdemeanor that carries a maximum sentence of one year in prison and a fine of $1,000.=
Individuals under the age of 18 are only allowed to enter a dispensary with an adult who has a valid medical card.
The sale of fewer than 25 pounds of marijuana is a felony punishable by a two-year prison sentence and a $20,000 fine.
Who can your dispensary sell to in Oklahoma?
Only medical cannabis patients (or their caregivers) with valid patient licenses can shop at an Oklahoma dispensary. Medical cannabis is available to Oklahoma residents over the age of 18 who have a physician’s recommendation.
A physical medical marijuana ID card or the state’s database can be used to verify a patient or caregiver. Out-of-state persons or companies are not permitted to purchase medical marijuana from licensed dispensaries. Licensed processors can sell to other licensed processors and licensed dispensaries.
Oklahoma dispensary market size and opportunity.
Despite its accomplishments, the cannabis industry in Oklahoma is still in its infancy, and the environment is rapidly changing. Marijuana laws in the state are continually changing to make it more accessible.
Another feature that distinguishes Oklahoma from other states is that it allows cannabis smoking and vaping anywhere that tobacco can be lawfully consumed, such as on the sidewalk or in a bar that allows smoking. As a result, Oklahoma has morphed into an industrial cannabis state with a variety of dispensary options.
There are only a few challenges to overcome. Any sort of cannabis — from raw flowers to topical lotions, from oils and gels to vaporization and patches — can be sold by anybody who pays $2,500 for a dispensary license.
Cannabis legalization has resulted in a significant expansion in legal cannabis cultivation and distribution, as well as an explosion of related service providers in many states. Cannabis has become a lucrative business prospect for many inhabitants in the state.
What cannabis software do I need to run a dispensary?
To run a compliant dispensary in Oklahoma, you will need the following business software:
One of the most important technologies in a dispensary is a point-of-sale system. A compliant POS system will make sales transactions easier for your dispensary’s staff and provide the greatest payment options for customers. A POS can help run the following tasks:
Regulate inventory control and legal compliance
Manage customer check-in and ensure that your customers follow the daily sales tracking guidelines
Assists you in automatically rejecting transactions for people who are not authorized to buy.
Integrate with the Metrc system, and keep you compliant.
Integrate with yourscheduling softwareand provide labor forecasts for scheduling.
Produce all sales and customer reports for the approval of cannabis authorities.
Dispensary payroll software.
Integrated dispensary payroll software will assist you in managing your employees’ pay. It manages all expenses and interfaces with other systems such as personnel administration and payroll tax deductions. It makes direct contributions to the IRS and compensates employees via direct deposit. Another benefit of using an integrated payroll system is that you can integrate your company’s payroll with the rest of your workforce management suite; performing tasks like approving clocked hours to payroll, and running payroll in the click of a button. Dispensaries who used this type of system report saving 5 hours per week on running dispensary payroll.
Scheduling and time tracking software.
Also known as workforce management software, integrated scheduling and time tracking software makes creating staff schedules, and managing staff hours very hands off. With this type of software, you are able to create schedules remotely, and staff can request shift swaps or time off. With time tracking, staff can sign into work using facial recognition technology, and staff-approved hours can be streamlined to payroll – so staff who clock into their shifts, get paid with the click of a button.
Dispensary HR software.
Recruiting, hiring, interviewing and onboarding can take up a lot of time. Especially when staff have important documents they need to sign, and criminal record checks that need to be completed. With dispensary HR software you can automate recruiting, and onboarding, by having staff onboard themselves and sign digitized documents.
A Security system.
A good security software system with cameras to monitor what goes on inside and outside your dispensary should be paramount to ensure your dispensary remains compliant. You will need a system where you can monitor all the affairs of your dispensaries at one glance without being in different places at the same time.
Inventory management software.
You require some software to help you manage your inventory, and the process of placing orders and confirming inventory counts from your vendors. You’ll also need a system that will remind you when new orders are needed when it detects product shortages.
Website.
If you are in a state that allows e-commerce for dispensaries, a website should be a top priority for competing for top rankings in today’s market. Because of technological advancements, you may now open an e-store where customers can buy cannabis online and have it delivered to their doorsteps.
Your website should be able to collect KYC information from your consumers to verify their identities and eligibility to acquire cannabis products, so you can be confident you’re following the cannabis serving guidelines. If you deliver a cannabis product to someone who isn’t eligible for it, you’ll be breaking the rules guiding cannabis consumption, and this might be a huge risk for your new business.
Metrc.
Metrc, also known as Marijuana Enforcement Tracking Reporting Compliance is a regulatory compliance system and was built to keep track of cannabis cultivation, preparation, and packaging. Basically, Metrc is a database for tracking cannabis from seed to sale, and identifying it using RFID tags. In Oklahoma, you must submit data to Metrc to run a compliant dispensary. Reporting to Metrc can be done manually, however cannabis-specific POS systems are offering a Metrc integration, meaning it is done automatically for you as you sell your product.
What else do I need to know?
Now that we have covered all the technical and operational bases, the rest is up to you.
Other key parts of opening a dispensary include considering where your store might be located, what your brand value and vibe will be, and how your product and store will look.
Marketing should also be a consideration, as well as staff training, and company culture.
Many new cannabis entrepreneurs hire consultants to help them navigate these areas.
For now, we hope this has been a helpful way to get you started.
Tommy Truong is the Director of Partnerships at KayaPush; the cannabis software helping dispensary owners manage their HR, scheduling and payroll all from one easy to use platform. KayaPush also integrates with leading dispensary POS systems, giving you an end-to-end solution. Tommy loves hot sauce, fried chicken, and running with his Boston terriers.
Member Blog: How To Choose A Point Of Sale System For Your Cannabis Dispensary
The Canadian cannabis industry has witnessed great success since federal legalization in 2018. In the United States, 35 states authorize the use of medical cannabis, and 15 of them allow recreational marijuana consumption. Potential dispensary owners should bear in mind that the cannabis industry operates under strict laws and regulations that set this business apart from conventional retail operations. A robust point-of-sale (POS) system is one of the most important tools that a dispensary owner must invest in. However, it’s also crucial to remember that not all POS systems are created equal, and a cannabis industry-specific POS will always be a better choice than a generic POS. Following are some of the most important criteria that you should consider when selecting a cannabis POS:
Product Design and UX
A cannabis-specific POS created specifically to address the nuances and pain points of cannabis businesses is your best bet. A well-designed system helps you quickly process actual sales and facilitate better inventory management. An intuitive and easy-to-use system boosts the performance of your budtenders by making product information and customer data available to them on the fly, thus elevating the overall customer experience as well.
Compliance and Traceability
Compliance is the number one administrative burden dispensaries have to deal with because of the stringent laws and scrutiny the cannabis industry has to undergo. A well-executed cannabis-specific POS system empowers owners to stay compliant at every stage of their business. Most states in the US require tracking of inventory and sales through a state-mandated traceability system such as Metrc or BioTrack. Even among cannabis POS systems, the level of integration with the government tracking system varies, with many offering only batch reporting at the end of the day. Choose a POS that automatically sends every reported transaction in real-time to the tracking system, thus helping you minimize human errors and always stay fully compliant. Many legal cannabis markets also require digital age verification scanners for dispensaries to scan IDs at the point of entry. So ensure that your POS provider provides all these functionalities.
Reliability and Data Privacy
There have been instances of generic POS crashing when used by cannabis stores. Even popular cannabis-specific POS systems have had recurring performance issues. Learn more about each of the POS systems in consideration by reading reviews and customer stories to figure out how reliable they are. A cloud-based POS system entails storing data on remote servers operated and maintained by a third party. It poses a lower technical barrier to entry and is definitely a cost-effective solution, but you must ensure that your POS provider protects all your dispensary and customer data, as per government regulations.
Inventory Management and Reporting
A well-designed POS system offers inventory valuation and costing methods integrated into your POS to streamline your inventory management. A dispensary-specific POS will provide you the sales trends data you need to most accurately judge the weights, strains, and quantity of products you need to stock up. Many states in the U.S. expect you to have a clear paper trail on every legally grown gram of cannabis, from seed to sale, and your POS system must have efficient reporting capabilities for you to report that. Powerful analytics and a customizable mobile reporting dashboard will enable you to monitor the health of your store and submit reports in real-time from anywhere.
Hardware and Software Integration
How your dispensary POS integrates with your other services and technology is another factor. Consider all the physical hardware that is being used in various sections of your dispensary and whether the POS provider can sync them with its software. You will have to integrate your accounting, HR, workforce, and security software solutions with your POS as well to ensure smooth operations. In a fast-evolving industry, new platforms and innovative solutions can hit the market almost overnight, but you must only select a POS that seamlessly integrates just not with your hardware and software but also with online marketplaces like Leafly, Weedmaps, and Dutchie so that you can offer easy pickup and delivery services to your customers as well.
Product Development and Support
A cannabis-specific POS company that has extensive experience in the industry will remain an authority on the latest developments, and will regularly update its product to stay ahead of regulatory changes. Find out about the after-sales customer support system they have in place- many companies will help you launch quickly but will disappear when problems may arise and leave you to tackle software glitches on your own. Also, choose a dedicated system for your retail business that specializes in the cannabis sector you operate in and is not an all-in-one solution.
Scalability and Cost of Ownership
An enterprise-level POS allows you to manage stock across all stores, set up location-level pricing, perform bulk editing, and even assign granular employee security permissions. It gives you complete visibility and full corporate control of your business with centralized reporting- accessible from anywhere, on any device. A POS built for multi-location brands has a robust platform with open APIs to enable flexible, plug-and-play integrations for easy scalability. Choose a POS provider that has the cannabis industry expertise and the ability to grow with you. Even if you may have to pay a bit more upfront, you will benefit from the long-term ROI and reduce your overall cost of ownership.
Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.
Cova designs and builds retail software solutions specifically for the cannabis industry. Our technology platform currently powers 20,000 retail stores and over 1000 cannabis dispensaries with virtually no downtime, even on 4/20, making us the most robust and reliable cannabis POS system available on the market. Our point of sale system and its suite of digital solutions make complex operations simple, so retailers can stay compliant, streamline their operations and deliver an amazing experience always.
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Author Tommy Truong is the CEO at 
