7 Mistakes to Avoid When Choosing Cannabis POS Systems for Dispensary

In the modern-day cannabis industry, normalizing a thriving point-of-sale system is an essential but critical aspect that could make your dispensary gain a competitive edge. A robust POS system incorporates all day-to-day business operations and customer service and complies with legal and complex regulations. While many POS systems are available for purchase, choosing the right one is another crucial step that demands a significant investment of time and effort. This article explores some essential mistakes to avoid when deciding on cannabis POS systems.

1. Failing to Consider Compliance Needs

Different jurisdictions have vastly different approaches to legalizing cannabis. The first thing that should concern you is whether the POS software you choose is consistent with state and local regulations. Ensure the POS software you choose stays in line with the laws and is integrated with seed-to-sale tracking systems usually required in the regulated cannabis market.

Here are some key compliance features to consider:

• Seed-to-sale tracking: Can integrate with regulatory tracking systems and facilitate monitoring of inventory movement from growing facilities to dispensaries.
  
• Age verification: Legal age verification ensures that customers buying cannabis products are within the legal age limit for acquisition and consumption.
  
• Product labeling and categorization: Correctly and consistently categorizes all products on THC content level, strain type, and other requirements specified by the authorities.
  
• Detailed reporting: Creates comprehensive variance, stock, and sales tax reports, along with regulatory compliance, helping the store to remain secondary for its legitimate activities.

2. Focusing Solely on Price

Concerning cost is a great need, but a purchase for the lowest price at a high price could become a burden in the long run. A feature-limited system might hinder your growth and efficiency. Invest in cannabis POS systems that scale with your business and offer the functionalities you need to thrive. Consider factors like:

• Subscription fees: Monthly or annual costs associated with the software.
  
• Transaction fees: Per-transaction charges levied by the POS provider.
  
• Hardware costs: Initial investment is required for equipment like tablets, receipt printers, and barcode scanners.
  
• Integration fees: Costs associated with connecting the POS system with other business management tools.

Evaluate the total cost of ownership (TCO) rather than just the base price. Consider long-term value and scalability when making your decision.

3. Neglecting Security Features

Dispensaries process highly confidential customer data and perform financial transactions. As a business owner, you should focus on strong security measures. Look for a POS system that offers:

• Secure login protocols: Employing multi-factor authentication and a robust password encryption method protecting user access.
  
• Data encryption: Encryption of sensitive information at rest and in movement to rule out unsanctioned access.
  
• Regular security updates: The POS (Point-of-Sale) should remain at the cutting edge of information security by frequently introducing software improvements to address new vulnerabilities.
  
• User access controls: The ability to define permissions that limit access depending on the user’s role.
  
• Audit trails: Maintain an activity tracking system for registering the user actions and secure the process trail with the record of transactions.

4. Ignoring Inventory Management Capabilities

Efficient inventory management is critical for any dispensary. The right POS system should have a cannabis inventory tracking system to:

• Track inventory levels in real-time: Monitor stock levels across various product categories and locations.
  
• Manage product variants: Distinguish between strains, potencies, and package sizes.
  
• Generate low-stock alerts: Receive notifications when inventory dips below pre-defined thresholds.
  
• Automate reordering: Simplify the process of replenishing stock based on sales data.
  
• Track product expiry dates: Ensure products are sold before they expire to minimize waste.

A robust inventory management system prevents stockouts, reduces shrinkage, and optimizes cash flow.

5. Overlooking Reporting and Analytics Features

Data-driven insights are the fundamental requirement for strategic planning and effective decision-making. Your POS system should offer comprehensive reporting and analytics functionalities to: 

• Track sales trends: Determine the most popular products, customer choices, and peak sales periods.
• Analyze customer demographics: Learn and understand your consumers to make sales and marketing campaigns targeted.
• Monitor employee performance: Assess personal sales performance and detect progress in each stage.
• Evaluate marketing campaigns: Measure your marketing implementations and evaluate their effectiveness.

6. Selecting a System with Limited Integration Capabilities 

• Accounting software: Streamline the financial reconciliation and tax reports submission processes.
• Customer relationship management (CRM) software is an application that optimizes customer service by using past purchases and customers’ preference information.
• Loyalty programs: Regulate and monitor customer loyalty programs using purchase repetition by encouraging consumers to return for more.
• E-commerce platform: Consider combining a physical dispensary with an online shop for a broader client base.
• Cannabis inventory tracking system: The software also includes more accurate inventory control capabilities far superior to regular POS.

7. Inadequate Customer Support

Reliable customer support is vital for troubleshooting technical issues and maximizing the value of cannabis POS systems. Look for a provider that offers:

• Multiple Support Channels: Customer service representatives can send support tickets using phone, email, online chat, and an additional online ticketing system.
• Knowledgeable Representatives: Ensuring the training for the support staff to accommodate them with the POS system knowledge and the current Cannabis industry standards.
• Prompt Response Times: To ensure seamless operation, the supplier must be able to respond to your inquiries/concerns promptly.
• Training Resources: Provide your staff with the essential training materials and tutorials to work with the system successfully.

8. Failing to Consider Scalability

As your dispensary grows, your POS system needs to keep pace. Look for a solution that scales to accommodate your increasing business needs. Consider factors like:

• User capacity: Ensure the system can support the growing number of employees you plan to hire.
• Transaction volume: The system should handle high transaction volumes without compromising processing speed.
• Product catalog expansion: The POS system should accommodate various products and variations.
• Additional locations: If you plan to expand to multiple locations, choose a POS system that facilitates centralized management.

Conclusion

Your dispensary’s choice of POS system will be an investment in its future. Examining your needs and annual budget and developing a plan will save you from traps and help you meet your specific customers’ needs in a competitive cannabis market. Don’t settle for anything less than a comprehensive, secure, and scalable POS system designed specifically for the complexities of the cannabis industry. Eliminate the need for manual harvesting work with a reliable provider. Save money and time with their complete inventory audits with accuracy.