Member Blog: How to Navigate the Cannabis Payment Landscape in 2023

With the recent crackdown on cashless ATMs in the U.S. for cannabis payments, dispensaries have been scrambling to find alternatives to this banking system. As more consumers nowadays prefer to pay by credit or debit cards, or another form of digital payment, dispensaries must offer convenient forms of making payments to their customers. But until there is federal legalization in the U.S., the cannabis payment landscape will continue to be marred by complications. This complete guide on cannabis payment processing can help you navigate the hurdles better and set your dispensary up for success with the best digital payment solutions. But continue reading for some quick tips on handling cannabis payments in 2023.

Reduce Cash Transactions and Risks

Cash may still be king in the cannabis industry, but it comes with many risks. And in this highly regulated industry, compliance must remain the priority for dispensaries. Cash also limits your ability to retarget or upsell to customers. By reducing cash transactions, you can avoid the following risks:

Cash theft by robbers, employees, or customers.
Mistakes in daily cash counts and accounting.
Inventory compliance issues due to untraceable cash.

Encourage the Use of Digital Payments

With digital payments, instant reporting capabilities give cannabis retailers a better understanding of business performance. Also, providing customers with a modern and convenient shopping experience is a competitive advantage in the cannabis industry. There are significant advantages to encouraging the use of digital payments:

Improved dispensary experience for customers.
Increased safety and security for everyone.
Easy Banking, Tracking, and Reporting.

Maximize the Benefits of Going Cashless

The most important benefit of going cashless is that you’ll see a massive increase in sales and revenue. When a customer is not limited by the amount of cash on their person, they always tend to buy more, and budtenders are better equipped to upsell. Most dispensaries using cashless payment solutions witness:

Minimum 25% increase in average transaction value.
Increased customer loyalty and retention.
Overall improved operations with data insights.

Choose a Compliant Payment Solution

There are quite a few cannabis cashless payment solutions out there, but not all can provide you with the enhanced safety, security, and compliance needed for cannabis retail. Ensure that you choose a multichannel payment solution that integrates seamlessly with your cannabis POS and complies with all laws and regulations. A dispensary cashless payment solution must offer the following:

PIN Debit Payment: The most compliant solution.
ACH Electronic Transfer: No-cost direct payments.
Integration with loyalty and gift card programs.

Implement Cannabis eCommerce and Delivery

To provide customers with the most convenient and efficient way to purchase cannabis products, dispensaries should also consider implementing eCommerce and delivery services. This allows customers to browse and buy products online, with the added convenience of home delivery. Implementing such services also helps reduce cash transactions, as customers can pay digitally if you have a compliant cannabis payments solution.

Set up an eCommerce website by using a cannabis-specific eCommerce platform that integrates seamlessly with your POS system.
Use cannabis-specific delivery software to set up compliant delivery services or outsource to third-party delivery companies.
Dispensaries must have a robust digital payment system that complies with all regulations, which can only be achieved by using a cannabis-specific payment processing system that integrates with your eCommerce platform and POS system.

Bonus Tips

Here are a few more tips for navigating the cannabis payments landscape:

Consider implementing a loyalty program to encourage repeat customers and increase sales.
Ensure that your payment processing system can handle high volumes of transactions to avoid delays or downtime.
Stay up-to-date with the latest regulations and compliance requirements for cannabis payments to avoid any legal issues.
Offer multiple payment options to customers, such as debit and credit cards, ACH transfers, and mobile payments, to provide greater flexibility and convenience.

Conclusion

The cannabis industry is rapidly evolving, and dispensaries must adapt to the changing payment landscape to remain competitive. By reducing cash transactions, encouraging digital payments, and implementing cannabis eCommerce, dispensaries can offer customers a convenient and safe way to purchase cannabis products while complying with state and federal regulations.

Offering the convenience of digital payments increases dispensary profits, enhances the customer experience, and elevates your dispensary business beyond the limitations of cash only. With a truly transparent and compliant cannabis cashless payment solution, you can facilitate faster check-out at your dispensary with simple, frictionless, and secure digital payments. Dive into Cova Software’s free cannabis payments processing guide to learn more.

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.

With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.

Member Blog: The 6 Technology Tools Every Multi-Location Dispensary Needs

by Tommy Truong, CEO at KayaPush

As a multi-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.

3 – HR software for multi-location dispensaries.

Dispensary HR software is vital for hiring, onboarding, and retaining great people.

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.

For more tips on choosing a tech solution for your multi-location, check out the key things that the owners of 100 dispensaries recommend.

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.

Member Blog: 5 Must-Have Features for Your Cannabis eCommerce Website

by Gary Cohen, Cova Software

As the cannabis industry goes mainstream, eCommerce is increasingly becoming a necessary part of cannabis retail operations. But with a plethora of dispensary eCommerce solutions available, not all of these can help you build an online presence. With intense competition in cannabis retail, there are some things that you must not compromise on as a dispensary owner. The following five must-have cannabis eCommerce features will help you grow your dispensary business, differentiate yourself from competitors and establish yourself as a formidable brand in the online cannabis space.

Independent eCommerce Platform

When deciding how to sell cannabis online, retailers can either use a third-party marketplace or have their own eCommerce website. Using a marketplace may be the easier option, but in the long run, you will certainly benefit more from owning an independent eCommerce platform. Having your own cannabis eCommerce website gives you complete control over the design, product information, and branding, unlike a third-party marketplace that offers little room for customization. Another valuable benefit of an independent cannabis eCommerce platform is that you can market it directly to online visitors and existing customers and build brand loyalty.

Data Ownership For Building Relationships

To market your online cannabis platform directly to your target demographics, it’s essential to have access to their contact details, which is not possible when you use third-party marketplace platforms. With an independent eCommerce platform, you will not just own your website but also all customer information and other relevant data to help you create innovative marketing campaigns and offer a more personalized online customer experience. Through email marketing and loyalty program communications, you can keep your customers regularly engaged with your brand and grow your business by building long-lasting relationships.

Mobile and SEO-friendly Website

These days, consumers regularly use their smartphones to search the web and make online purchases. Hence, your eCommerce website must function properly not just on desktops but mobile devices as well. You must avoid using an iFrame embedded menu, employed by many third-party marketplaces, as Google won’t crawl or index your website. To ensure that your online cannabis store is discoverable, use an advanced native eCommerce solution that aids in building SEO authority. If your chosen solution offers the ability to create content, you can also capitalize on SEO best practices to improve the flow of organic traffic to your website.

Age-Gating and Compliance Features

If you’re selling products online that have legal age restrictions, then an age-gate on your website is a must. This is not just a compliance requirement, but it also demonstrates your commitment to not exposing cannabis to minors. Many regulatory authorities in the U.S. and Canada are mandating more robust online age-gating measures beyond a simple “Are you 21+ yes or no” pop-up, and it’s essential to choose a solution that offers the functionalities for you to comply with the laws. Your cannabis eCommerce store also must-have features that allow for compliance with legal purchase limits and any other online regulations within your state or province.

Integration with POS and Cannabis Ecosystem

Most importantly, your chosen eCommerce solution must integrate seamlessly with your POS system for efficient inventory management, transactions, and payment processing. Ensure that you are using an advanced cannabis POS system that syncs with leading cannabis tech ecosystem solutions so that you can streamline your online business and maintain a recurring revenue stream from it. For a seamless shopping experience, your customers should be able to browse the website, place an order, pay online and request for pickup or delivery.

Member Blog: Protecting Your Cannabis Business from Ransomware

by Eric Schlissel, CEO/CTO of Cure8

Ransomware is everywhere in the news lately. It caused the shutdown of the largest refined oil pipeline in the U.S.; disrupted the operations of the world’s largest meat processing company; and continues to disrupt operations at hospitals around the world, even as the pandemic has surged and waned and surged again.

The question many cannabis businesses are asking themselves these days is – could I be a target, too?

The answer is yes, since ransomware gangs target businesses of all sizes and in all industries, including cannabis. At the same time, there are a couple of reasons why many cannabis businesses are less likely to be targeted, which we’ll get into.

What Is Ransomware?

By definition, ransomware is a type of malware that encrypts your files so that they’re inaccessible and demands a ransom in the form of cryptocurrency in exchange for a decryption key to restore your data.

Ransomware is designed not only to encrypt the files on the device it infects, but also the files on anything that the device has access to, including other computers, servers, company file shares, and backups. You can run into a situation where literally all your company’s important files are encrypted before you even realize what’s happening.

Why Windows Is Key

Most forms of malware, including ransomware, are designed to target Windows devices only, mainly since it’s the most popular operating system (OS) in the world and the one that most businesses use.

Fortunately for cannabis companies, most of their actual operations don’t rely on Windows. Most cannabis point of sale (POS), enterprise resource planning (ERP), and cultivation software and industrial systems are non-Windows or cloud-based, though there are a few exceptions to this including BioTrack.

A lot of their most critical data – including track-and-trace and inventory and transaction records – are on these non-Windows platforms, and so are relatively safe from being encrypted by ransomware.

Still, a lot of them still use Windows PCs and servers in their back offices and headquarters.

So while a ransomware infection might not be a complete disaster for most cannabis businesses – resulting in days and weeks-long outages and recoveries for the entire company – you still have to worry about critical administrative and other non-operations data being encrypted, as well as whatever damage hackers might do with access to your back office and HQ networks, including stealing intellectual property and banking info.

Protecting Yourself from Ransomware

Firewalls

Network-level firewalls, the IT equivalent of a dispensary security guard checking IDs at the door, can protect you from ransomware by blocking traffic from unknown, suspicious, or blacklisted domains (keeping hackers from both entering your network and transferring data in and out); preventing users from accessing malware-laden sites like adult, gambling, and piracy sites; filtering out malware and spam; and alerting you to suspected intrusions.

Employee Training

The most common source of ransomware? Employees doing things they shouldn’t, like opening attachments in emails from people they don’t know, getting tricked into entering their passwords into phishing websites, visiting websites they shouldn’t be accessing at work, or setting passwords that are easy to guess. Make sure to train them on how to use IT securely when at work.

Secure Your Windows Machines

Including by protecting all Windows machines with strong passwords; setting up encryption (the good kind that prevents hackers from accessing your data); never giving users admin-level Windows access; requiring that users get permission before installing applications; giving users access to only the applications, files, and servers they need access to; applying security updates as soon they’re released; and installing antivirus or enabling Windows Defender.

Backups

Backing up your data won’t prevent a ransomware infection, but it will allow you to recover your data without having to pay the ransom. Just make sure your backups are isolated enough from the rest of your system that 1) your backups aren’t encrypted; 2) you don’t overwrite your backups with the encrypted versions of your files; 3) you don’t back up the ransomware itself.

Ransomware Isn’t Just a Threat, It’s a Wake-Up Call

We don’t know all the details about the Colonial Pipeline hack, but recall that it reportedly wasn’t actually ransomware that brought down the pipeline itself. Instead, ransomware affected some other areas of the company, and Colonial shut down the pipeline to be safe and determine the full extent of the hack.

So just because your most important applications and data are relatively secure from ransomware doesn’t mean you’re not susceptible to hacking in general.

Even if hackers break into your systems and can’t encrypt your files to hold them for ransom, they can still:

Steal credentials
Lock you out of your accounts
Steal sensitive data including intellectual property, banking info, customer data, embarrassing emails, etc. and leak this data on the internet
Use their access or stolen information to trick employees into wiring them money

So don’t view ransomware just as a threat in itself that may or may not affect your business. Cyber attacks existed before ransomware and will still exist after it, if they’re ever brought under control.

View it as an opportunity, now that IT security is as on the top of everyone’s mind as it’s ever been, to take a serious look at your IT security and make the needed investments to protect yourself against both current and future threats.

Eric Schlissel is the CEO/CTO of Cure8, one of the world’s leading cannabis IT services providers. His company helps dispensaries, distributors, manufacturers, and cultivators throughout the U.S. and Canada to plan, install, secure, manage, and scale their IT.

He has been a featured panelist at many cannabis industry events, including those put on by the NCIA and CCIA. He’s also a respected IT thought leader outside of the cannabis industry, being quoted in publications such as Wired, the Los Angeles Times, InfoWorld, and Information Week. Outside of work, Eric can be found gardening with his two small children, trying to perfect the feat of growing a thriving basil plant and ripened tomatoes at the same time. He is currently developing in the fine art of bourbon tasting, enjoys travel, and is a foodie-wannabe.

Member Blog: Cannabis Compliance – 6 Tips To Avoid Dispensary Fines

by Tommy Truong, KayaPush

Cannabis Compliance is one of the things to which every cannabis dispensary must pay attention. Not only does compliance ensure that you have the legal right to carry out your cannabis-related operations but it also helps keep your business from unnecessary fines and sanctions.

The U.S. Food and Drug Administration (FDA) has stipulated various regulations for cannabis-derived products at the federal level. In addition, there are regulations at the state level. Violating any of these regulations can land your cannabis business in trouble that could potentially lead to revoking your license.

Also, people generally have greater trust in regulation-compliant businesses, so compliance is healthy for your business reputation. It is important, therefore, to structure your business operations to align with the cannabis dispensary guidelines and regulations operational in your area.

In this article, we will cover 6 tips and tools to help you keep your cannabis dispensary from incurring any fines or lawsuits, let’s dig in!

1 – Digitization of licenses and renewal

In an industry as critical as cannabis dispensing, unauthorized operations constitute a serious offense and may attract severe penalties. The reason should be obvious—cannabis and its products can pose a raft of risks when handled by the wrong people.

This is why your dispensary must be properly licensed by the appropriate government body to be fully authorized for cannabis operations. Your cannabis business is at the risk of heavy fines, suspension, or even total shutdown if you operate without a license.

Different states may have different requirements for obtaining dispensary licenses. There may also be local laws and regulations within the state. You need to ensure that you discover and comply with all the requirements applicable to your locality.

For instance, the State of Colorado requires that employees in the cannabis industry must possess a MED (Marijuana Enforcement Division) license. This means that if your dispensary is in Colorado you not only need to get licensed as a business but each of your employees must also obtain licenses.

You must also ensure that your business license and those of your employees (where applicable) are up to date. The requirements for licensing evolve with changes in cannabis regulations and you will need to stay abreast with information about license requirements in your area in order to maintain your cannabis compliance.

Tracking your licenses and their renewals can be quite a task. But you can save yourself hassle and stress by using a digital HR system to store and manage your licenses.

With HCM software, you can manage your employee profiles and ensure that every worker has the necessary licenses to work in your company. This way, you minimize the risk of operating without a license and violating cannabis compliance regulations.

The software also lets you store and track your licenses and set up reminders to alert you when a license is coming due for renewal. This feature makes it easy for you to maintain up-to-date licenses and renewals.

2 – Use state traceability with a seed-to-sale integrated POS.

One of the major concerns in the wake of the increased legalization of cannabis is the ability to monitor the product from seed to sale. From the top of the production and supply chain to the bottom, traceability is crucial to cannabis compliance.

Monitoring and tracking every single step of this supply chain helps to ensure that cannabis and its products do not fall into the wrong hands — and this goes a long way to ensuring that the product is not abused in any way.

Cannabis and its products can be exposed to contamination with toxic chemicals and other harmful substances via pests or unhygienic processes. Such contamination may pose serious health risks if not prevented or properly managed. With well-detailed traceability, you will be able to track each step to be sure all necessary safety measures are in place.

Your license proclaims that you can be trusted with handling a product as sensitive as cannabis. One of the ways you can demonstrate this is by accurate accountability — and this comes naturally with good traceability. You should be able to give a proper account of every single cannabis product offered by your dispensary in case of audits or investigations.

Implementing adequate traceability is not as difficult as you might think. Compliant POS software that has this feature enables you to automate traceability with relative ease.

This type of software is integrated with the required traceability systems such as Metrc, BioTrackTHC, and Leaf Data Systems. With these, you can rest assured that your data reporting complies with the requirements of the U.S. government.

3 – Time clock software that uses facial recognition technology

Staying compliant in the cannabis industry requires that you commit your operations to qualified employees. Given that cannabis is a highly sensitive commodity and can easily be abused, you must establish a means of regulating who gets involved in your processes.

A time clock software product will help you keep track of your employees, their clock-ins, breaks, meal times, and other important indices. You can restrict and regulate who gets access to what, where, and at what time.

For instance, an underage person might attempt to clock in for a friend and get involved in your cannabis business operations. Also, chances are that someone in your company might attempt to punch in for a shift when it’s not their time.

These buddy punching practices can sometimes land you in serious compliance violation trouble. Using software with advanced face recognition technology will help you control unauthorized employee clock-ins by granting access only to the right person in the right place — so you can be sure you are staying compliant as your workers have minimal chance of violating labor codes.

Time clock software not only protects you from cannabis compliance risks but also from violating other laws that might lead to severe consequences. For example, violating the California labor codes — part of the laws in California — can lead to a lawsuit that may eventually cost you a fortune.

The California labor code provides that employees are entitled to a 30-minute meal break per five hours of work. This means an employee can potentially sue you with a PAGA lawsuit claiming that they have been deprived of meal breaks — a violation of a labor code. As trivial as this may sound, the lawsuit may eventually attract serious penalties to your business.

In this scenario, you can avert such lawsuits by providing proof that the employee clocked in and out for their meal breaks so gathering such evidence won’t be an issue. You can also automate your payment system to sort out necessary employee payments to ensure you stay compliant.

4 – Select POS software with purchase limit alerts and built-in ID

As part of cannabis regulations, different states in the U.S have different purchase limits. This means that you are not legally allowed to sell more than a stipulated amount of cannabis and its related products to a customer within a stipulated time.

For instance, both medical and recreational consumers can only purchase one ounce of cannabis per transaction in the state of Alaska. The limits are different in California where medical cardholders are allowed up to eight ounces per day, while recreational buyers are constrained to just one once daily.

If your dispensary does not pay attention to these purchase limit regulations, there is a high risk that you will be found to be violating the law and face dire consequences. Since it cant be difficult to manually track transaction limits, you can leverage POS software to set up purchase limit alerts.

Using POS compliance technology provides you with this very important feature. You can customize your system settings to alert your dispensary whenever a transaction goes beyond the stipulated purchase limit for a customer so, it becomes easier to set up your system to maintain your cannabis compliance anywhere you are in the United States.

Using a system with built-in ID features can also help you combat looping. Looping occurs when cannabis buyers purchase up to their limit, lay it off somewhere, and return for another purchase. It is usually done as a way to bypass the transaction limits.

With the built-in ID feature, you can link a customer profile to the transactions carried out by that customer. That way, you can easily detect the number of products a particular registered customer has purchased and set purchase limit alerts on their profile. So, no matter how many times they come, you will not be able to sell more to them if they have already reached their limit.

5 – Create customizable clock-in surveys

Clock-in surveys can help you ascertain some important details that enable you to maintain a compliant working environment. You can customize your clock-in surveys to obtain different information from different employees for different analyses and purposes.

For example, you can customize a clock-in survey to confirm that a new employee understands and remembers the compliance regulations applicable in your company. You can automate the survey to run for an employee’s first week at work to help them get accustomed to the regulations.

You can customize another clock-in survey to ascertain that your employees are up to date with the most recent legislative changes in cannabis compliance rules. This kind of survey can be automated to run at intervals, say once every 3 months.

Such clock-in surveys help you ensure that you leave nothing to assumption or chance. It goes a long way in keeping the consciousness of cannabis compliance very much alive in your dispensary.

6 – Hire a compliance manager

Given how important compliance is in the cannabis industry, it makes sense for you to prioritize ensuring that your dispensary is as compliant as possible. One of the most effective ways to do this is by hiring a compliance manager.

Notwithstanding, it is great to automate your operations to ensure compliance, it is also not a bad idea to employ a compliance manager to oversee your compliance-related issues.

Part of what a compliance manager does is to help you develop, implement, and review your internal operational policies to ensure they match the current compliance demands. In case any changes are made in compliance regulations in your area, your compliance manager will be devoted to enforcing those changes to keep your dispensary from violating the new rules.

Stipulating policies and regulations might not be sufficient. You may need someone who is committed to enforcing these policies among your employees. This is where employing a compliance manager can pay off.

With a compliance manager in place, you can focus on your business, its growth, and development while you can rest assured that you are not at risk of dispensary fines as a result of violating cannabis compliance regulations.

Tommy Truong is the Director of Partnerships 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.

Member Blog: How Cannabis Dispensaries Can Navigate The METRC System

by Gary Cohen, Cova Software

Cannabis dispensary owners must bear in mind that this industry operates under strict laws and regulations that set their business apart from conventional retail operations. State governments must balance public health and safety with the business needs of the regulated community, and that requires complete tracking of all marijuana products from seed to sale. Most states have already switched to METRC, the largest traceability system helping dispensaries from coast to coast stay compliant with the law. The goal of METRC is to easily retrace the steps from sale to seed and facilitate transparency in the legal cannabis industry. This post will help you understand better why METRC is required, how it benefits everyone, and how can you navigate the system while using the right technology to stay compliant.

What is METRC & Why it is Needed?

Marijuana Enforcement Tracking Reporting Compliance (METRC) is a cloud-based, state-mandated platform used by 15 states in the U.S. It facilitates real-time tracking and tracing of cannabis plants and products from seed to sale. METRC was first adopted by Colorado and early reports in 2014 indicated that this regulatory monitoring technology allowed for accurate quality control and ensured that the safety of the end consumer was prioritized.

In all METRC states, cannabis stores and dispensaries must use the system either directly or integrate it with their POS. All data about your dispensary is safely stored in the cloud and is only accessible by you or the state regulatory authority. State regulatory authorities use data inconsistencies in METRC to detect any diversions from the mandated regulations and if they find any discrepancies, they could conduct an investigation and impose hefty fines.

How to Prepare for METRC?

To gain access to the METRC system, all employees working at your dispensary must get certified. The process involves training, studying the terminology and workflows, and then taking a 40 questions multiple-choice test. METRC uses RFID tags as unique identifiers to recognize and monitor all transactions, these are not reusable and must be purchased in batches or bulk by dispensaries.

Every dispensary must incorporate its own solution to work with METRC. One can navigate the system manually but it is a risky and time-consuming process, as it involves countless hours of data entry, auditing, and reconciling processes to deal with the errors that inevitably pop up. The most convenient way to implement METRC is to automate as much of the process as possible. Investing in a robust point-of-sale solution that integrates seamlessly with METRC will ensure complete compliance with state regulations.

What are the Daily Obligations?

METRC’s cloud-based software requires only an internet connection and computer or tablet to access and use it, and an advanced POS system can automate the whole process for you. METRC tracks all plants and products with Radio Identification Tags. The plant tag is used to track each plant from its immature phase through to the harvest, while package tags are available for harvest batches or packages of one kind of product. All these activities must be recorded by dispensaries and reported to state regulatory authorities on time.

METRC charges $0.45 per plant tag and $ 0.25 per package tag. The tags can be ordered directly from METRC’s online software system, and are custom-printed for each dispensary. These can not be returned once the printing process has begun, are non-refundable, and cannot be reintroduced into the supply chain. Recreational cannabis plant tags are blue while medical marijuana plant tags are yellow.

Manual or Automatic Reporting?

METRC is simply a reporting tool – an application that allows you to send data to the state to maintain compliance. In most states, reports about all activities must be submitted to METRC no later than midnight on the day they occurred. A cannabis-specific POS can facilitate reporting to METRC while providing a user-friendly interface. To get the best compliance solutions, look for a POS that offers 2-way integration. This ensures that reports are sent to METRC in real-time, manifest intake is automated, and inventory adjustments are automatically synced with the traceability system.

Manual reporting will require you to log in to your online METRC account at the end of every business day to enter all data from every single transaction and activity that occurred. This is a time-consuming option that can also result in errors, increasing the risk of compliance infractions, fines, or worse, loss of retail license. Automated reporting with a cannabis-specific POS solution will make your life easier as it integrates seamlessly with METRC and automatically sends all your inventory adjustments and sales transactions as they occur in real-time. Also, if there are ever any connectivity issues, all saved data automatically sync once you are back online.

METRC has standard operating procedures in all states, and dispensaries don’t have a choice but to comply with them. But dispensary owners do have the option of selecting the right POS system that can help their employees navigate the METRC system more efficiently. Download your free copy of ‘A Complete Guide to METRC Compliance for Marijuana Dispensaries’ by Cova, to learn in-depth about the different levels of POS integrations with METRC, how to work best with the system, and state-specific METRC differences.

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.

In solutioning the POS platform, Cohen & the Cova team have met with over 1,900 operators and leveraged expert knowledge to provide retailers the support they need to get a license, pass inspection, launch a store, and improve operations. Cohen leads seminars on retail technology, compliance, business operations, and cannabis banking laws at the industry’s largest events, including the NCIA and MJBizCon. As Cova has become the predominate thought leader for cannabis retail tech, Cohen has established himself as a leading voice educating cannabis entrepreneurs as they build their own successful brands.

Member Blog: 7 Dispensary-Killing Mistakes And How To Avoid Them

by Gary Cohen, CEO of Cova Software

In the retail cannabis industry, there’s no conventional roadmap to success — at least not yet. Pioneering businesses must create their own strategies and systems through trial and error, all while coping with restrictive, ever-changing regulations and shifting market trends.

But as we enter the second decade of legalization, the landscape is changing. Cannabis entrepreneurs are learning from the last five years of industry growth and drawing on what worked for other retailers.

At Cova, we’ve partnered with more than 800 retailers to implement business operation systems through our cannabis POS software. We’ve seen retailers succeed, expanding into multiple markets with dozens of stores. And we’ve seen other retailers struggle and fold.

So, what makes the difference between success and the long, downward spiral into “retail fail?” What are the cannabis retail mistakes that kill market entrants? Through working with so many companies, we’ve discovered some of the secrets to cannabis retail success — and uncovered the nasty reasons for common failures. You’ll find them all in our new book, “Why Some Cannabis Retailers Fail… and the Secrets of Those Who Succeed.”

Here in this article, we document the biggest dispensary-killing mistakes that we’ve observed over the last five years. Don’t fall victim to these errors! Keep reading…

Dispensary Mistake #1: Financial Mismanagement

Most retailers — successful or otherwise — understand the importance of financial management, and they stay on point with their finances, or so it may seem. They keep orderly books and watchful eyes on their cash flow.

Yet what sustains a cannabis retail store financially is forecasting and preparation. A dispensary with an uber-tight budget might look like a booming business when it’s actually vulnerable to a variety of external risks — risks like global pandemics.

COVID-19 interrupted sales for many retailers while at the same time necessitating new technologies and infrastructure. Online ordering was suddenly a must-have POS integration, and delivery services — which were considered a questionable experiment just months before — were immediately necessary to stay competitive in many markets.

Likewise, the start-stop nature of legalization can create unexpected exposure, especially in new markets. When regulators hesitate to enact legislation and permit sales, retailers are left sitting on expensive real estate — sans revenue.

It’s best to set aside two years of operating capital if possible or maintain access to that amount of financing. Everything in cannabis takes longer than expected. Successful retailers recognize that fact and prepare accordingly.

Mistake #2: A Cloudy Vision for the Future

Successful retailers have a crystal-clear vision for the company they want to build and what they want to offer customers. When asked, these folks have quick answers to questions like “what are your companies goals” or “what are your companies values”?

Some retail operations fail to realize that they don’t have a clear vision. Individual stakeholders may have different values and assume others feel the same. If that’s the case, the business is pulled in different directions and has trouble making progress to any one goal. Internal conflicts slow decision making, which is critical for effective operations.

Be clear on your values and vision. Common values include profitability, serving medical patients, or simply living the cannabis lifestyle. Whatever your values, make sure they’re documented in a plan and shared with the rest of your team.

Mistake #3: Problems with Authority

In the days of prohibition, successful cannabis “retailers” made sure to avoid the law. Now, retailers embrace regulations and comply with every last rule — without cutting a single corner.

Successful retailers often designate a compliance supervisor. That person can manage seed-to-sale reporting, compliance logistics, and how your stores meet regulations on a day-to-day basis. They also nurture your relationship with regulators and ensure you’re seen as one of the “good guys.”

Many features of a cannabis-specialized POS support regulatory compliance. Technologies like ID-scanning and POS/security integrations keep your front of house compliant, while seed-to-sale reporting meets regulatory requirements on the back end. Moreover, they eliminate human error — one of the biggest causes of violations.

Mistake #4: A Poorly Designed Customer Experience

Sometimes, retailers struggle to step into their customers’ shoes. They can’t see their own brand from the customer perspective, and they don’t understand why they’re poorly received by the market.

Each point of contact with your customer is an opportunity to deliver a good experience. Taken together, they add up to the customer experience. These touchpoints include your advertising, social media, store aesthetics, parking, online ordering system, and the type of customer service you provide.

For your customers to have a coherent experience of your brand, every touchpoint of your operation must be consistent. Whether your store caters to wealthy Millennials or aging Baby Boomers, it’s important that the quality of their interactions with your company are consistent. An upscale dispensary won’t have a filthy exit area or a bad website; likewise, a store that focuses on value pricing won’t have fancy bathroom fixtures.

Mistake #5: Mismanaging HR and PR

Good retailers have great relationships. They treat their employees and communities well — and are treated well in return! Failing retailers, on the other hand, often let bad employees spoil their customer experience, or they find themselves at odds with their community and neighbors.

When it comes to HR, good retailers actively cultivate their staff — and that means weeding out the undesirables. They know that their brand critically depends on their budtenders so they train and treat them well. But, when it’s necessary, they also release those who steal, cause customer service complaints, or show up late (or intoxicated).

When it comes to PR, successful retailers are engaged in their communities through active outreach. In emerging cannabis markets, communities usually need some reassurance that cannabis medicines aren’t the evil they may have imagined them to be. So, if you’re struggling for acceptance in your location, you could consider reaching out to medical professionals, clergy, and law enforcement with an offer of cannabis education. Often, it just takes a meet-and-greet to humanize your dispensary and set fears at ease.

Mistake #6: Operational Chaos

The Wild West of cannabis can be chaotic even in the best-run businesses. That makes it even more important to limit internal disorder and run a tight ship.

Successful retailers often have team members who are experienced in other industries and have excellent business operations skills. They analyze their sales reports and constantly refine what works. Even when things are going well, they experiment with different inventory items and suppliers, and they look for ways to reduce costs.

Technology can help tame the chaos of cannabis by automating many tasks that cause human error. Moreover, tech can save a lot of time — and payroll hours. When your cannabis POS and inventory management system integrate with your regulatory reporting system and have automated features, you save a ton of time and money.

Mistake #7: Not Using Data

The future of cannabis retail is data-driven. Like in other industries, successful cannabis retailers — the ones who expand to dozens of locations across multiple markets — are mining data to improve their business operations and customer service.

A good example is a loyalty program. These programs keep customers coming back, usually by using a points-based rewards system that mines data. It’s easy to track who buys which products, in what quantities, and at what frequency. And because you have the customers’ contact info, you can directly market to them with personalized promotions. To go one step further, you can implement a clienteling program and display the customer’s purchase history to your budtenders on your POS tablets. That way, they can offer personalized recommendations for a better customer experience.

Benchmark data is increasingly relevant to the cannabis industry too. With benchmark data, retailers can assess their performance against industry norms and address opportunity areas that may be holding them back. It illuminates industry trends and shifts in consumer preferences and, by providing an outlook, helps companies better plan for the future. As the industry evolves, companies will rely more and more on benchmark data firms to provide the intel for better decisions.

Successful Retailers Keep Learning

Across the board, the best retailers seek to improve. If you’re ready to step up your operation — or enter the market successfully — you might want to check out Cova’s ebook “Why Some Cannabis Retailers Fail… and the Secrets of Those Who Succeed.”

The book can be downloaded here, and contains the dispensary tips that we’ve learned from working hand-in-hand with more than 800 retailers. You’ll discover additional cannabis retail mistakes as well the tactics that work for the most prominent retailers. Happy reading!

Member Blog: New Data Reveals Market Share Changes for Cannabis POS Software Providers

by Ed Keating, Co-founder and Chief Data Officer of Cannabiz Media

Point of sale software providers are a critical part of the cannabis economy, and as the industry grows, a shift is happening.

In the first half of 2019, the dominant POS providers of 2018 held onto their positions as market leaders. Others merged or were acquired, and new providers launched. Even big brands like NCR, NetSuite, and SalesForce entered the market joining Quicken and Square in an attempt to gain a piece of what they hope will be a lucrative market.

Cannabiz Media conducted a research study to identify POS software providers and market shares in mid-2019 and compared the data to findings compiled in a similar year-end 2018 report. The full report is available for free download here, and the results may surprise you.

Key Findings for Mid-Year 2019:

There are 68 unique POS software providers in the U.S. cannabis industry (up 58% from 43 in December 2018).
BioTrack is the market share leader overall.
BioTrack is the market share leader in states with medical-only cannabis programs.
Green Bits is the market share leader in states with adult-use cannabis programs.
Green Bits is the market share leader in METRC states.

Cannabis POS Market Share Shifts in the First Half of 2019

In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market. Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology.

Compare those numbers to how things looked at year-end 2018 when the top 5 POS providers made up 80% of market share, and the top 10 were responsible for 93% of the market.

In addition, the number of POS vendors servicing cannabis businesses increased by 58% from 43 in December 2018 to 68 by July 2019.

In other words, while the market is still highly concentrated, the market leaders have given up some market share, and new companies continue to enter the space.

The same shifts are happening in medical-only and adult-use states.

In mid-2019, 34 POS providers were active in medical-only states (up from 15 in December 2018), and 53 were active in adult-use states (up from 40 in December 2018).

At year-end 2018, the top five POS vendors accounted for 94% of the market in medical-only states, but in July 2019, they only account for 70.4% of the market.

In adult-use states, the top five vendors accounted for 78% of the market in December 2018 but only account for 71% of the market in mid-2019.

Top Cannabis POS Software Providers in Mid-2019

According to Cannabiz Media’s research, the top five cannabis POS software providers overall in mid-2019 are:

BioTrack
Green Bits
Flowhub
MJ Freeway
Indica Online

In medical-only states, the top POS software providers in mid-2019 are:

BioTrack
MJ Freeway
Indica Online
Flowhub
COVA

In adult-use states, the market share leaders in mid-2019 are:

Green Bits
BioTrack
Flowhub
Adilas
MMJ Menu

In METRC states, the top five POS software providers in mid-2019 are:

Green Bits
BioTrack
Flowhub
Adilas
MJ Freeway

Key Takeaways

While the POS market leaders have lost some market share in recent months, the biggest battle appears to be among the top two companies, which have approximately twice as much market share as the company ranked in third place in the overall market as well as in adult-use states and METRC states. In the meantime, the other 66 POS providers that service the cannabis industry are slowly chipping away at that share.

Get the Free Report with Detailed Data, Charts, and Commentary

Visit https://cannabiz.media/pos-report-2/ to download Cannabiz Media’s complete “Point of Sale Software in the Cannabis Industry: 2019 Mid-Year Report” for free to view all of the detailed market share data, the full list of POS vendors in the cannabis industry, 2018 vs. 2019 comparisons, and specific data about POS providers in the California and Oklahoma markets.

Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry. During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations. These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University. He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years. He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.