How to start a medical cannabis delivery service
Starting a cannabis delivery service business is a great alternative to the traditional route of opening a dispensary if your starting capital is less than $100,000 however you intend to get 30% net profit. This cannabis business also affords you a much greater opportunity to provide 1-on-1 service to your customers.
Main Steps to start a Cannabis Delivery Service Business.
1. Cannabis Delivery Service Business financial model will show you how you drive the future in all major areas: investments, sales, expense items and financing goals.
2. Cannabis Delivery business plan is a tool for understanding how your business is put together. You can use it to monitor progress, hold yourself accountable, it’s a sales and recruiting tool for attracting your future investors and expand your business and of course it will help to apply for cannabis delivery license.
In the most states now a cannabis delivery service is legal as a part of dispensing (B2C) or between licensed premises by a licensee or licensee representative. For example, a cannabis retailer may deliver a cannabis item to a residence in Oregon, however the retailer must receive written approval from the Commission prior to making any deliveries and may not carry or transport at any one time more than a total of $3000 in retail value worth of marijuana items designated for retail delivery.
You need to learn cannabis delivery approval process and requirements for your state, city and county.
We are working on the detailed information about cannabis delivery opportunities in different states and soon will update this section.
Starting a cannabis delivery service means you don’t have to lease or buy an expensive store to keep your stock in, but you’ll still need a place that’s big enough, safe enough, and legal enough, to keep everything. Keeping your stock safe while its in storage isn’t the only time you’re going to have to consider security.
Be sure to have enough product to fill all anticipated orders. Research the current demand in the area you plan to service. Knowing this information will help you estimate how much cannabis products you need.
Learn the rules and regulations regarding the amount of product you can store, as well as the amount you are allowed to deliver at one time.
You’re going to need a sturdy, reliable and secure vehicle, one that fully complies with any state laws regarding the use of a vehicle for business purposes and with the vehicle registration laws in general:
(A) Capable of securing (locking) the cannabis items during transportation;
(B) Equipped with an alarm system; and
(C) Capable of being temperature controlled if perishable cannabis items are being transported.
Keep in mind that some patients who are physically capable of getting to a dispensary prefer to use a delivery service because of the extra level of discretion it ensures.
For many of the people who use cannabis delivery services, they’re often the only option, especially for those who suffer to the point that getting to a physical dispensary requires a mammoth effort.
Even if your business makes life easier for both them and you, you’ll still need to register them as in any other kind of cannabis business.
Work with your local physicians to establish good relationships that can lead to recommendations, have the appropriate registration forms with you, and don’t forget to verify their medical cannabis license.
Because cannabis is illegal under federal law, state governments and online advertising platforms are placing strict rules on how companies can market their products.
Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose of recreation.” Facebook restricts any “illegal, prescription, or recreational drugs.” And Twitter bans “illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to go a step further by removing pages of cannabis related businesses.
In spite of that you are still able to promote your service directly through special platforms, including:
You should also develop the website and brand your appearance, including mission statement, logo, colors, brochures etc.Starting a cannabis delivery service business is a great alternative to the traditional route of opening a dispensary if your starting capital is less than
Considering offering marijuana delivery? A pro offers some tips
Published June 4, 2020 | By Omar Sacirbey
Cannabis sales through deliveries are a growing share of the overall marijuana market, a trend that has been accelerated by the COVID-19 crisis.
Expect deliveries to remain popular in the near term as coronavirus fears linger but also in the long term as regulators learn that deliveries can be handled safely and are a necessity for many homebound patients.
In response to the COVD-19 crisis, Brandon Wiegand, regional general manager at The Source medical and recreational business in Nevada, managed to put together a team of about 10 delivery drivers during one weekend in March. That team has since grown to 27 drivers.
Of course, not every company can – or needs – to move as quickly as Wiegand did initially.
In the video interview below with Marijuana Business Daily reporter Omar Sacirbey, Wiegand shared insider tips on how to add a deliver service to your business, including:
- How to recruit and train drivers.
- Updating standard operating procedures.
- Whose vehicles to use.
- Expenses such as lock boxes and gas.
- Working with regulators.
- Delivery sales strategies.