The combination of an industry in its infancy and the strict guidelines being enforced could pose some potential problems for those wanting to start a dispensary in California.
Laws and regulations appear to change frequently with no end in sight. And thanks to California voters, many people can now start a dispensary business in the state. However, this could lead to a limited supply of high-quality, compliant cannabis products.
Let’s look at how cannabis retailers can maintain a steady flow of cannabis for their business.
Battling High Demand and Potentially High Pricing
With so many retailers getting ready to start a dispensary in California, there could be cause for concern due to one factor.
Will there be enough legal pot to go around? In other words, have cultivators had enough time to legally grow crops that will match supply?
This remains to be seen with an industry that’s new to the state along with the unknown number of people who are planning on starting a dispensary business. However, the bigger question actually comes down to pricing.
As the current law stands, California has placed limitations on certain growers who are considered medium-sized. This leaves the door wide open for both small growers and large-sized cultivators to obtain as many licenses as they want. The problem is that small growers may not have the resources or funding to take advantage of this opportunity.
Unfortunately, large growers will have the potential to take over and jeopardize small growers, who are considered the backbone of the industry.
Maintaining Adequate Inventory While Staying Within Legal Guidelines
Given the challenges that are likely to come, or are already present, within the cannabis industry, it’s important for cannabis shops stay on top of these changes.
One thing they will have to keep in mind is to not take shortcuts that will put their business in jeopardy. Since no changes to federal law have been made, dispensaries will need to ensure that they are running a clean, legal shop according to their state’s laws and regulations.
While the current administration has threatened to crackdown on retailers, it still hasn’t happened on any grand scale. However, acquiring product illegally to meet demand or not following the law in any circumstance could put you on the Fed’s radar.
Since California has the largest population of any state, there’s the possibility that it could come under more scrutiny than we’ve seen in the past. While none of us can predict what the Feds are going to do, it’s best to play it safe.
Your best bet is to always stay within the guidelines of the law and work with vetted vendors to maintain a steady supply of legal product.
Finding a Reputable Cannabis Distributor
One way to guarantee legal product on a continual basis is to work with a reputable cannabis distributor.
You should only work with a cannabis distributor who:
Ensures legal transportation of the product
Performs regular testing to ensure quality
Has developed solid relationships with cultivators over the years
Delivers high-quality product and offers competitive pricing
If you need help with finding a vetted cannabis distributor, contact a member of the Highline Distribution team via our website. We’re happy to answer any questions about our processes and how we can help stock your dispensary with quality product!
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