
A Little Known Way to Reduce a Dispensary’s Labor…
Preview: Labor costs are one of the greatest expenses for new dispensaries. Find out how much they cost and what you can do about it.
One of the most important considerations entrepreneurs will need to confront: labor costs.

As the regulatory landscape in America becomes friendlier to cannabis, many entrepreneurs are seeing opportunities. The industry is expected to boom, with a market valuation of nearly $18 billion in 2019 and projections of enormous growth over the next decade. With numbers this promising, those looking to open a dispensary are setting their hopes high.
Let’s talk about one of the most important considerations entrepreneurs will need to confront as they put their plans together: labor costs.
The greatest expenditures opening a dispensary.
Labor costs are one of the greatest expenditures associated with opening a dispensary.
- Depending on your:
- location
- the cost of the real estate you rent or buy
- The cost of the beautiful limited and restricted areas you design
- Depending on the legal jurisdiction, the regulations you will need to comply with
- Labor costs, on the other hand, will mainly depend on the size of the dispensary you’re looking to open.

Paywana provides Self-Ordering Kiosk’s run by our proprietary for Cannabis and CBD dispensaries to reduce labor costs.
Because startup costs for any new venture are high, it’s wise for most dispensaries to start off small. The personnel you need in order to operate a small dispensary will include a staff of full-time budtenders, a store manager, and a master grower, according to Gary Cohen, writing for the National Cannabis Industry Association (NCIA).
Start-Up Costs will run you approximately $250,000 annually
He estimates that these costs will run you approximately $250,000 annually as you find your footing in the beginning.
Comparing that figure to the other costs that will be in your budget, it’s clear that labor is the single most expensive thing you will need to account for as you open a dispensary.
Cohen also estimates that the next highest costs will be real estate and capital requirements, which will run you about $150,000 each.
In all, you should expect labor costs to account for approximately one third of your overall costs.
Because it’s such a significant chunk of any dispensary’s budget, many that open dispensaries have been creative about reducing labor costs.
One of the best ways to offset high labor expenses
One of the best ways to offset high labor expenses is to automate your dispensary – to makes investments in self-ordering kiosks for customers to use. This way, there is a substantially lower requirement for the size of your full-time budtender staff.

Cohen estimates that an investment of $25,000 in hardware and software will be sufficient to reduce labor costs substantially. A trade-off with this much lucrative potential is hard to ignore – since most businesses take years to turn a profit, it can help ensure your business survives the painful startup period.
Entering the dispensary business is a great long term investment, if you play it right. The first step is to create a business plan with accurate and realistic cost estimates. While many of the costs you’ll have to pay are out your control entirely – inordinate cannabis licensing fees, for instance – it’s important to make the most cost-efficient decisions for ones you can control. Labor is one of them. With a conventional approach, employing a full-time staff will cost you a quarter of a million dollars in your first year alone. With a reasonable investment of your capital, you can offset those costs substantially. Make sure you don’t leave those cost-savings on the table when you start your dispensary.
Conclusion
The right selection and use of technology will always create efficiencies. The use of self-ordering kiosks are one component to reduce labor costs. Prepare today for the increase in demand tomorrow.
About Paywana
Paywana provides self-ordering kiosks run by our proprietary to Cannabis and CBD dispensaries to reduce labor costs and increase profits, We offer everything needed to efficiently operate and manage your dispensary including interactive kiosk software, Cannabis and CBD friendly payment processing solutions. Visit Paywana.com for more information.
