Whether you’re selling medical marijuana or CBD products, or you run a recreational dispensary for adult use, chances are that you’d like to make more money. The cannabis industry is growing at an incredible rate, but individual businesses can face some of the same challenges that are prevalent throughout the retail sector.
But it doesn’t have to be that way!
By using Hypur’s cannabis merchant processing solutions, uur partners have also experienced increased revenue and cost reduction. This happens in three ways.
Higher ticket amounts
One of the easiest ways to make more money is by getting your customers to buy more. Of course, the follow-up question is how to get customers to buy more. The main way to do this is by minimizing hurdles to spending more.
In cash-intensive industries like cannabis, most consumers are used to visiting the ATM before a visit to a medical marijuana or recreational dispensary. As a result, before they’ve even walked in your doors, they’ve decided how much they are going to spend, regardless of any upselling tactics your employees might use.
By encouraging customers to pay electronically, you can increase your average ticket size since customers aren’t limited to the amount of cash they have on them. This is consistent in all industries, not just cannabis, but due to the high percentage of cash sales, cannabis businesses can increase sales significantly by encouraging more electronic transactions.
It should be noted that when customers are required to pay a convenience fee (like with cashless ATMs), you are actually incentivizing them to pay with cash (or shop at a store that doesn’t charge a convenience fee).
Merchants repeatedly tell us that average ticket sizes go up when customers use Hypur. The average basket size increases by 18-20%, with tickets averaging over $90, but varies by market (primarily adult-use vs. medical).
The checkout process can be an irritation for customers and cashiers. No one likes the inconvenience of waiting in a long line, and if customers see a wait at the checkout line, they can become irritated or even leave without making a purchase. Across all retail businesses, this can mean spending more on staff to open another checkout line and speed up the process.
With Hypur, you’ll offer customers faster checkout. Customers can automatically check-in on the app, even before they walk in the door. Then, when it’s time to pay, they simply enter their Personal Access Code (PAC) on the pin pad and the transaction is complete. This makes for a much faster checkout, letting your staff help more customers per hour and reducing wait times for customers in line.
Reduce cash costs
Many dispensaries under estimate the incredibly high cost of cash for cannabis businesses. Despite claims that we are moving towards becoming a cashless society, 30% of retail transactions across all industries are cash. Of course, cannabis is way higher thanks to perceived payment issues and a historical reliance on cash.
But using cash can increase your costs by over 15% thanks to the increased labor needed for handling. Just think of the operating cost you face because of all the time that staff and management spend on starting and closing drawers, let alone pickups, delivery or marking change.
By accepting Hypur, you reduce the amount of cash handling in your business. This frees up your managers to better spend their time working towards business objectives and improving customer and employee experiences. Instead of hiring more staff to help with cash handling, you can reduce your operating cost, resulting in increased revenue.
Hypur offers more than legitimate payment, banking, and compliance solutions. Partnering with Hypur can lead to reduced costs and increased revenue.