Precious Pennies: How Dispensaries Might Need to Start Holding onto Change
Zencanna
As if our world is not in a state of total disarray already, the cannabis industry is taking another hit during this global pandemic: the Federal Reserve’s new order. That, along with the previously existing financial barriers to entry in the cannabis industry, makes for a difficult time for dispensary owners right now.
What exactly is the new order?
So, what exactly is the new Federal Reserve order? Because of the pandemic and changes to regular transactions in the economy, the Federal Reserve is not producing as many coins as usual.
According to a statement released regarding the change, “In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly, and the U.S. Mint’s production of the coin also decreased due to measures put in place to protect its employees.”
This new order titled the “Strategic Allocation of Coin Inventories,” went into effect on June 15, 2020. These temporary changes and restrictions are said to only be necessary for a while, though.
The statement also read, “Although the Federal Reserve is confident that the coin inventory issues will resolve once the economy opens more broadly and the coin supply chain returns to normal circulation patterns, we recognize that these measures alone will not be enough to resolve near-term issues.”
How does this affect your dispensary?
This might not seem like a massive issue at first glance, but dispensaries will be impacted more than you might realize. Often, dispensary transactions are cash, and without the coin inventory to return customer change, dispensaries are having to round up prices during an economic recession.
Customers might not be bothered if it is a few cents, but it is still an issue to have to hike up rates when a lot of customers might be out of work.
Why can’t dispensaries start using more debit and credit transactions? Well, some dispensaries might not yet have a POS system that allows for these types of transactions, and that might be due to the unreliable funding for new entrepreneurs in the cannabis industry.
In the case that a company already has a POS system that would allow this type of transaction, a vast increase in the amount of these types of sales might be a red flag for their bank, which could end the business.
What can you do to prepare for this?
If you are a dispensary owner, now is the time to invest in a reliable POS system that is explicitly made for dispensaries and will track laws and regulations in your area.
This way, you can stay ahead of new legislation and continue to provide your customer with regular prices during these unprecedented times. With Zencanna, all of this is not only possible but easy. Follow the link for a free trial.
Sources:
https://www.laweekly.com/federal-reserve-order-shortchanges-cannabis-industry/
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