A Little Known Way to Reduce a Dispensary’s Labor…

Preview: Labor costs are challenging for the cannabis retail industry.

The retail industry’s success has taken a turn for the worse.

The retail industry is huge — according to a report produced by eMarketer.com, in 2014, retail sales were more than $22 trillion, and almost every year, roughly 67 percent of the United States gross domestic product (GDP) is derived from retail consumption.  

However, in recent years, the retail industry’s success has taken a turn for the worse. 

Many consumers now prefer to shop online, rather than in traditional brick and mortar stores. 

Cannabis Has Brought Back Brick & Mortar Retail

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. 

3 Tips to Reducing Budtender Turnover

Why the Cannabis industry is experiencing growing pains

As is the case with any emerging market, the cannabis industry is experiencing growing pains. Specifically, one of the most prominent issues many dispensaries face is budtender turnover.

On average, a cannabis retailer has a turnover rate of 30 percent. This turnover rate is somewhat justified as some college students seek budtender work as a summer job.

However, both Colorado and Washington experience worse months for turnover than just August. Many argue that, despite their “low” ranking within a company’s hierarchy, budtenders are a company’s most important employees.

Dispensary Managers must find ways to lower budtender turnover