Business Overview

Medical marijuana dispensaries legally purchase marijuana from vendors and sell it to physician-approved patients. Dispensaries have a physician on the board of directors to ensure that patient treatment adheres to standard accepted practices. They also have highly trained staff who are continually educated about the many different strains and forms of cannabis and their medicinal purposes. Those forms include vapor, tinctures, balms, oils, juices, and edibles. A medical marijuana dispensary provides patients with an alternative to pain-killers and other drugs that can have harmful side effects when used long-term.

Who is this business right for?

This business is ideal for people who are passionate about alternative medicine and have a strong desire to help others. Those who have worked in the medical field are often drawn to this business, since the goal is to alleviate the severity of symptoms associated with many medical conditions that adversely affect quality of life. People interested in learning more about the practical application of the latest scientific discoveries in the fields of medical science, biology, and horticulture are ideal candidates for this business.

What happens during a typical day at a medical marijuana dispensary?

  • Keeping abreast of federal and state laws and new legislation affecting the industry
  • Learning about the medicinal properties of existing strains of cannabis as well as those of new strains currently under development
  • Negotiating prices with growers and ordering products
  • Educating and training staff members
  • Communicating with patients about their needs and the effectiveness of your products in meeting them

What is the target market?

Clients and customers are all patients who have been referred by a physician who has prescribed cannabis as a medical treatment for an existing condition.

How does a medical marijuana dispensary make money?

A medical marijuana dispensary makes money by selling cannabis products for medicinal purposes. Some dispensaries grow their own product to increase profits while others purchase the product from professional licensed growers and resell it at a higher price. Many also make money through the retail sale of pipes and vaporizers purchased in bulk at wholesale prices.

What is the growth potential for a medical marijuana dispensary?

A new report by a research firm revealed that legal cannabis sales rose 17% in 2015 to $5.4 billion and predicted that it would grow another 25% in 2016. Profits for individual dispensaries vary greatly. According to a recent industry survey, almost 60% of owners earn less than $500,000 annually. 27% of respondents reported sales between $100,000 and $250,000, and 15% reported earning less than $100,000. A little over 25% reported revenues of over $1 million, and 15% reported between $500,000 and $1 million.