Flowchart of Cannabis Industry Sectors

Production

Analysis

Distribution

Cannabis Flowers

Concentrates

Edibles and Topicals

 

Dispensary

A business that sells Cannabis products directly to consumers

Needs

-A medical doctor (strongly recommended) or other medical professional that can dispense sound medical advice to patients

-Staff that are intimately familiar with Cannabis and its derivative products

 

Challenges

-Maintaining a proper inventory of in-demand Cannabis products

-Competitive pricing

-Liability in checking patient paperwork, product certificates

-Maintaining positive perception by the local community

 

Dispensaries are where the Cannabis products are sold to medical patients. The Dispensary staff is responsible for checking patient paperwork and registering new patients. Dispensary staff also make recommendations or help patients find products specified and recommended by their doctors. Profit margins are very high when compared to other businesses in the industry, but dispensaries face several unique challenges. Dispensaries have the least selective market, catering directly to the patient base, and their revenue tends be the most volatile. Dispensary attendance is capable of fluxing a great deal over time and is largely governed by the reputation of products and pricing, as the overwhelming majority of dollars spent at a dispensary are spent by returning patients. It is for this reason that it is so important for dispensaries to be active with community and patient outreach, and to maintain a charitable reputation within the local community. Dispensaries also need to maintain literature and information on Cannabis products to help educate customers, and as well have a wide variety of Cannabis products available, from psychoactive flower to non-psychoactive tinctures containing no THC but that are high in other cannabinoids such as CBD. Many of these THC free Cannabis products are in great demand by parents of juvenile patients who require medicine for a serious condition.