Due to the recent legalization of cannabis products in certain states, the cannabis and CBD industry has exploded in recent years. However, as a whole, the industry faces several unique financial challenges that make it difficult for dispensaries and businesses. A recent article with leaders from the industry highlighted how cannabis firms face two significant challenges when it comes to financing operations: uncertainty about future revenues and a long cash cycle.
The good news is that gift cards can help cannabis dispensaries mitigate both challenges. As with any retail business, there are many benefits of selling gift cards. Cannabis dispensaries have an opportunity to scale and sustain revenue through a comprehensive gift card program.
5 Benefits of Selling Gift Cards for Your Cannabis Dispensary
Here are five specific ways that offering gift cards can help cannabis dispensaries and CBD businesses create immediate sales and sustain revenue to offset some of the unique financial challenges they face:
1. Gift Cards Create a Revenue Stream to Help Manage Cashflow
One of the biggest benefits that gift cards can offer your dispensary is the opportunity to get paid for products and merchandise upfront. When customers buy gift cards, you’re able to benefit from a revenue stream that helps you pay for merchandise.
Another benefit is that customers are more willing to spend money when using a gift card. According to a study by Retail Next, cannabis customers are 2.5X more likely to purchase products at full price when they have a gift card to use.
2. Gift Cards Help Increase Brand Awareness
Gift cards are a powerful way to increase brand awareness for your store. By creating customized printed gift cards or offering digital gift cards, you create an opportunity for customers to engage and remember your unique brand. Every time you sell a gift card, it’s an opportunity for customers to visit your store or endorse your products to a friend or family member.
3. Gift Cards Help Reach New Customers
As a relatively new industry, cannabis dispensaries and CBD shops must find ways to attract new customers. This is where gift cards can help. Gift cards provide a way for loyal customers to promote your store to others. For potential customers who have been hesitant to make a trip to your store, a gift card creates an opportunity for them to finally stop in and see what you have to offer.
4. Gift Cards Provide Customers with a Way to Pay That is Easier Than Cash
In certain markets, cannabis retail is still a cash-only industry. This can make it difficult for dispensaries since most consumers don’t carry cash. Gift cards are a convenient and easy solution to this problem.
5. Gift Cards Help Businesses Navigate the Challenges of Payment Processing
One of the unique challenges the cannabis industry faces is the cashless ATM charges from banks and payment processors. This creates another level of financial uncertainty for dispensaries and CBD stores. Gift cards help stores overcome this obstacle by creating a way for people to make purchases with a simple payment method.
Discover Why Card Market is Your Go-To Gift Card Provider
There’s no denying that gift cards help small businesses create opportunities to increase sales in the short term and generate more predictable revenue streams in the future. If you’re a cannabis dispensary or CBD store looking for a way to offer gift cards to your customers, our team at Card Market can help. Whether you’re looking for printed gift cards to sell in-store or want to create digital gift card offerings for your website, we have the experience to help you drive revenue, encourage repeat business, and enhance your brand’s perception with current and potential customers.
Learn more about the specific ways we can support your cannabis dispensary or contact our team to learn which products are best suited for your business and how we can enhance your marketing efforts to increase sales through gift cards.