Owning a cannabis business is often about more than effectively selling marijuana. Between the variety of paraphernalia and branded merchandise sold alongside loose product and edibles, there’s a lot of inventory to maintain and display for your customers. How you set up your retail space matters if you want to run an efficient, cost-effective, and attractive dispensary.
In fact, a variety of tax laws exist in most states that make it beneficial to your bottom line to design the store in a certain way. Using these laws as a baseline in how you set up the retail portion of your business, Industry Source Consulting (INSO) can help you find the balance between displaying the retail side of your business in a way that saves you money and keeps inventory flying off the shelves.
Most tax laws require you to keep your retail merchandise completely separate from cannabis in your store, if you’re even allowed to sell items other than cannabis. In Washington state, for example, dispensaries can only sell flower, concentrates, infused products and paraphernalia. It’s illegal to sell branded merchandise like stickers, t-shirts, or hats. In Boulder City, Colorado, dispensaries can sell branded merchandise as long as it’s not offered in children’s sizes. For those cities and states that allow retail sales, it typically can’t touch cannabis if you want to write it off.
In order to protect your retail component from being over-taxed you have to understand the laws and keep things separate. The experienced team at INSO applies our state-specific legal knowledge to your dispensary design to share money-saving strategies.
Once you map out where the retail section will be in your dispensary, designing the space comes next. Your design should be about enticing customers to purchase your merchandise in addition to what’s really bringing them into the store, cannabis. The flow of your dispensary should take customers past your retail inventory on their way to the edibles and loose marijuana so they can’t help but look. They should move easily through your store, so keep things as uncluttered as possible. Try to approach the layout as a minimalist to keep things simple, open and clean.
The architects and designers INSO relies on are able to come into your store, evaluate the space, and help you design an area that creates effective flow for customers.
With merchandise easy to see, that customers have to pass, the final step is ensuring it looks good enough to buy. If your logo is something cool and funky that people are naturally drawn to, consider blowing it up and putting on shirts, hats, sweatshirts, etc. If your business name gets a laugh because it’s a fun play-on-words, stick it on a magnet or water bottle. Consider having sales at key times of the year when your foot traffic is at its peak. A sale sign can do wonders in selling merchandise even if the markdown isn’t that low. The more merchandise you sell, the more free advertising you receive as customers wear your branded items out and about in their own communities.
No matter what kind of merchandise you’d like to produce, INSO has the right connections to get your items made in a variety of sizes, cuts, and colors at a competitive price.
Optimizing your dispensary design to allow your retail section to stand-out helps you sell your brand as much as your product. The design choices you instill aid in the customer having a positive experience throughout your store. INSO utilizes the talents of our designers, architects, and legal team to help you establish a thriving retail section in your dispensary that aligns with existing regulations. Additionally, we consult in all other areas that impact your cannabis business, from equipment, to property, to marketing and operations. Learn more about our end-to-end services, contact INSO today.