Cannabis retailers face a whole host of special challenges relative to regular retail operations. Today, we’re going to take a look at one of the most pressing facing cannabis retail operations; how to grow your business with limited physical space.
1. Supplement Floor Space with Digital Space
In many of the localities where medical or recreational cannabis sales are legal, real estate costs are through the roof. However, dispensaries really may not need as much floor space as they may initially think, and should instead strongly consider supplementing their actual floor space with so-called ‘digital space’. Most of your products can easily be displayed to customers on smart devices or on your website, with no need to take up valuable square footage in your actual retail space.
2. Stock Based on Pareto Principle
The Pareto Principle, also known as the 80/20 rule, is well-known in business; it states that for many events, about 80 percent of the effects come from only about 20 percent of the causes. In terms of your sales, this means that you should be generating the vast majority of your revenues from a relatively small subset of your total product offerings. Do your best to identify these core products, then devote the space you have to marketing them most efficiently; this should free up a significant amount of space formerly used by products which underperform in sales.
3. Create Systems to Accommodate Regular Customers
Any retail shop which has been in operation longer than a few weeks likely already has its share of loyal customers. One thing you can do to save a significant amount of time and space servicing them is to create a series of systems that accommodate their needs and preferences. For example, you may want to consider letting regular medical patients place their orders online, and then working to pre-package or prepare them before they arrive at your store. Then, they can simply show up and head straight to the register, saving them time and you floor space.
4. Invest in Cannabis Retail Technology
Lastly, you’ll definitely want to take a look at the full range of cannabis retail technology, and see what might be a good fit for your store. Some of the existing tech is especially suitable for smaller stores, particularly in terms of security, and in inventory management. A well-designed cannabis POS system in particular can really be of huge value to smaller stores, because it lets them tackle several of the entries on this list at once.
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