Dispensaries typically generate between $1 million and $4 million in annual revenue.We came to this conclusion based on a couple of key assumptions: If you are the 100% owner of your dispensary, then you can expect to earn between $100k and $1.2 million in annual income as a dispensary owner. The average dispensary can generate between $100,000 and $1.2 million in annual profit. How much profit can a dispensary generate? Average profit margin for a dispensary = 15%.Maximum profit margin for a dispensary = 21%.Minimum profit margin for a dispensary = 12%.Three different sources ( NStarFinance, AmericanCannabisCompany, Blaze) provide with a good overview of potential profit margins for a dispensary. The average profit margin for a cannabis dispensary is 15%. Permits (these might be yearly, depending on the area).Variable expenses change often, sometimes from month to month, and are rarely predictable. Fixed expenses are predictable, and rarely change without advanced notice. There is a whole host of variable and fixed expenses a business will incur throughout the month or year. Dispensaries are said to come with a higher revenue which could turn into a good profit, but expenses need to be taken into account. What Are Common Expenses for A Dispensary?Īs with any other business, dispensaries come with a whole host of expenses. You can see screenshots from our model below to get an idea of how we like to think about it: Customer Acquisition for a Dispensaryīelow you can see assumptions used to calculate that customer acquisition cost for a dispensary: Average product sold per customer visit.Our financial model leads you to make the following assumptions to get to a projected revenue number: So in our Cannabis Dispensary Financial Model Template we like to take a more foundational approach. Larger doesn’t guarantee the same income per square foot, leaving a wide range of potential revenue.Īlthough this is a useful bit of data on the average revenue of a dispensary, just because you open a space doesn’t mean that you will magically sell $974 per square foot per year. A larger dispensary might make more, but it also comes with a higher operating cost. Of course, this doesn’t mean that the dispensary has to stick to this revenue or size. ( MJBizDaily)Īfter gathering that information, the calculation is rather simple. Dispensaries average between 3,357 and 4,308 square feet of space with recreational dispensaries averaging toward the higher end of the range.The average dispensary generates $974 annually per square foot of space.We were able to estimate this based on a couple of assumptions: The average dispensary makes between $3,269,718 and $4,195,992 in annual revenue. How Much Can a Dispensary Business Make in Sales? For example, Illinois requires $400,000 in the bank before granting any licenses. Required Capital - The amount will vary depending on the state.The majority of dispensary startup costs will fall into the following categories: Average startup costs for a dispensary business = $750,000.Maximum startup cost for a dispensary business = $2 million.Minimum startup cost for dispensary business = $150,000.We were able to determine this average startup cost based on taking the average of three sources.Īccording to ( Cova, TheCannibisIndustry, Blaze), the following startup costs can be expected: On average, it costs $750,000 to start a new dispensary. How Much Does It Cost to Start a Dispensary Business? Choosing the right team members and technology.Estimate the cost of starting a dispensary.Licensing and application which will largely depend on the location.Researching and planning, such as whether you can move forward with recreational marijuana or only medical.Common Steps to Starting a Profitable Dispensary This article will outline how to start, the startup costs, and how profitable a dispensary might be. But, of course, dispensaries are limited by individual state laws, with only certain states making the substance legal on a recreational level and in a medical capacity.ĭespite the restrictive nature of many states, it’s no wonder future business owners want to get in on their slice of the pie – the $19 billion industry. Around 25,000 businesses employ over 56,000 individuals throughout the country. According to IBIS World, the medical and recreational marijuana industry is worth $19 billion.
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