Is running a cannabis store worth it? How much does a dispensary owner make a month? While exact numbers are difficult to provide, this post will attempt to answer these questions by looking at average dispensary profits and expenses.
Cannabis Is a Special Business
Dealing with complex cannabis regulations is one part of operating a weed store that is different from other retail stores. Successful owners must do a lot of research to identify good locations and they must have a flawless understanding of the regulatory environment in their state. In the end, however, a cannabis store is a retail business, and how much business a store does each day and each week determines overall profit.
So, how much does a dispensary make a month? It depends, of course, on the health of the company and their understanding of local regulations and markets.
Cannabis Contributions to the Economy
Cannabis stores boost the economy of every state they are in.
In California, weed stores contributed $4.4 billion to the economy in 2020, a 57% increase from the year before. Industry analysts expect Illinois, where recreational weed turned legal in 2020, to reach the same level. Michigan, Oregon, Alaska, and other states are all seeing a boost to their economies thanks to cannabis products.
Monthly Numbers
After accounting for expenses, most owners see an average of 12-15% profit at their dispensary each month, according to most industry experts.
Information from the California Department of Tax and Fee Administration indicates that cannabis stores make an average of $100,000 to $300,000 a month, with some locations bringing in a million dollars or more.
How Much Does a Dispensary Make a Month in Michigan (As an Example)?
In California, it is clear that cannabis stores can do well–but what about other states? Let’s take a look at another state–Michigan.
Michigan made recreational marijuana and paraphernalia like blunt wraps, pre rolled papers, and rolling cones legal to possess in 2018. The state has regulations that govern cannabis and CBD, like California, but has about a quarter of the population and has a different blend of trade and industries.
According to 2020 data from the Michigan Marijuana Regulatory Agency, the state saw average monthly sales of around $50,000 to $150,000. These numbers have increased each year since legalization, along with the number of people employed in the cannabis sector.
How Much Does a Dispensary Make a Month After Spending?
Before they count profits, owners have to make up for expenses.
Monthly expenses include wages for the staff, rent, maintenance, utilities, security, stocking the shelves, and cannabis-specific operating fees. In California, for example, the average monthly operating cost is around $100,000, with some areas costing more.
No state is cheap when it comes to operating a dispensary. To keep the lights on, employees paid, and shelves stocked, expect to spend an average of $50,000 a month, depending on your area.
How Much Do You Need for a Startup?
Making startup capital is one of the biggest challenges owners face, and the cost is different in each state. This cost, of course, must be recovered through profitable operations. So, how much does a dispensary make a month if they’re in the startup phase?
In Florida startup costs average a million dollars, and you’ll need five million dollars in reserve to handle unexpected expenses. In California, the estimated startup cost for a dispensary is around $250,000. States like Missouri, Alaska, and Washington, are a little more economical, with startup costs that average around $150,000. Then there are states like Vermont and Arizona, where you might open a dispensary for $50,000 or less.
After you recoup your money, you can start making real monthly earnings. Until then, your operation should be focused on recovering startup costs.
Let’s Be Real–How Much Does a Dispensary Make a Month?
Entrepreneurs who make the decision to pursue this line of work can make a good living.
According to MJBiz, the average annual dispensary profit can be anywhere from $100,000 to more than a million, depending on the state, products, and local factors. This means a monthly owner’s salary of about $8,333 to more than $83,333.
Good Products Boost Business
Cannabis and hemp fans of all kinds are flocking to pre rolled joint tubes and cones. These products save time and are a great way to smoke bud.
Dispensary owners agree that quality does affect sales and overall profit. So, how much does a dispensary make a month? That might just depend on the quality and variety of products you offer.
Make sure you offer your customers the finest smoking experiences possible with The Cones Factory products. Our delicious cones, tubes, and pre rolled joint papers are easy to fill and brandable. Contact us now for pricing.
