One of the most important aspects of running a successful business is making the right strategic decisions – a cannabis dispensary is no different than any other organization in that regard. However, in order to make the right calls, you need to ensure that you are in possession of all of the relevant data.Today, we’re going to take a look at 4 key metrics that your cannabis retail operation should be tracking every day, and explain how you can use this data to improve your bottom line.
1. Transaction Times
One of the most important metrics to track is your average transaction times. If you are using an inferior cannabis POS system to process your sales, or haven’t fully trained your staff in its operation, you can easily lose out on dozens of customers per week due to long lines & frustration. A well-designed POS system can often reduce your transaction times to just a few minutes, freeing up hundreds of hours of time for your sales staff while ensuring a great experience for your customers.
2. Average Products/Value per Sale
Another key metric in cannabis retail is how many products you sell on average per transaction along with the value. To illustrate why this may be important, consider how cannabis dispensary operations work in states on the East Coast, where the number of dispensaries is strictly limited by law. This means that the average customer in one of these states may be driving in from much farther away than what is normal in California. Consequently, these customers may ‘stock up’ when they visit, as they simply don’t visit as often. This chart provides a great example of this in action; note that the average sale in Maine is nearly 40 percent more valuable than the average sale in New Mexico. Tailoring your sales offerings to the actual behavior of your clients is a great way to maximize profits.
3. Traffic Trends & Patterns
Every dispensary owner knows that they are going to need extra help on 4/20, compared to an average day. However, with a high-quality cannabis POS system, you will be able to collect significantly more detailed information on traffic trends and customer patterns in your store. This information can then be used to positively affect your bottom line by helping you make smarter staffing decisions. You’ll be able to more effectively plan your operational staffing, ensuring people are ready when you need them, and that you aren’t wasting a lot of paid staff hours when you don’t.
We’re going to cheat a bit here, and stick several important metrics under the umbrella of ‘inventory’ data. In particular, focus on how much of your cash flow is tied up in inventory, how quickly individual products are moving, associated concerns such as additional product processing times or extra counting procedures, and identifying individual product suppliers which may cause issues for you (those with inferior flower quality or consistent logistics issues, for example). Your cannabis POS system will be your biggest friend here, as it should automatically allow you to track all of these metrics and more.
Keeping your finger on the pulse of your cannabis retail operation is certainly easier than ever before, but certainly no less important for the health of your business. For more information on how a well-designed cannabis POS system can improve operations and make a real impact on your bottom line, check out our POS buying guide.