How Much Do Dispensaries Make? Here’s What to Expect

Making profits is the ultimate goal of all business owners, and cannabis businesses are no exception. With revenues estimated to reach a whopping $51 billion by 2025, the cannabis industry presents entrepreneurs with incredible opportunities to make huge fortunes. While other industries struggle due to the ongoing global economic crisis, marijuana businesses show no signs of slowing down. The time is ripe to step foot into the exciting world of cannabis businesses. 

Here you’ll find no-frills data and an in-depth analysis of the average profits of marijuana dispensaries. Knowing these numbers can help you make informed business decisions and avoid costly missteps while launching your dispensary. 

Let’s dive right into the financials of marijuana dispensaries in the US:

How Much Do Dispensaries Make?

The average annual sale of a marijuana dispensary ranges from $1.25 to $2.5 million, with average annual profits ranging from 10% to 15%. On average, dispensary owners can earn anywhere from $250,000 to $500,000 yearly, depending on the scale of their operations. Many dispensary owners pay themselves around 10% of the average dispensary revenue as salaries. 

This means most dispensaries are profitable, and as legal cannabis prices are set to fall with increased production, there is a massive probability that the average dispensary profit will increase further. 

Factors That Influence Marijuana Dispensary Revenues

The profits a dispensary makes depend on several factors, such as:

  • Location
  • Average customer size
  • Marketing
  • Cannabis sales to registered patients 
  • Local competitors 
  • Value-add features such as the sale of cannabis paraphernalia and other goods

For example, a dispensary located in a small town will not be able to match the profits of another dispensary situated downtown in a bigger city. Similarly, the turnover largely depends on the number of registered patients. The more patients, the bigger the revenues and, ultimately, better profits. 

Is It Profitable To Start a Marijuana Dispensary?

While the numbers look good at the outset, running a marijuana dispensary is not for the faint-hearted. Operating a dispensary is not the same as running other retail outlets. It can take anywhere from $150,000 to $2 million to set up your marijuana dispensary. 

As with all businesses, there are several operational expenses, including staffing costs, rent, inventory, software, upfront renovation and setup, marketing, and initial licensing fees. Depending on where you are located, the licensing cost to launch your dispensary can be as high as $200,000. 

A marijuana dispensary is profitable, provided you have a solid marijuana dispensary business plan in place. Now that you know the costs and estimated profits, it’s time to take the plunge and set up your dispensary. 

Bespoke Financial Gives Wings to Your Cannabis Entrepreneurial Dreams

If you require financing to start or expand your CBD dispensary, check out the various marijuana financing options available at Bespoke Financial. As the leading commercial lender for the cannabis industry, Bespoke Financial offers easy, hassle-free dispensary loans to help you with the initial capital costs. 

We also provide inventory financing and invoice financing for existing dispensary owners to expand and scale their operations to maximize available market opportunities. 

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