A new report shows that the marijuana industry has a great deal of potential for retailers.
Running a legal marijuana dispensary is just as profitable as owning a Starbucks according to an analysis of a recent BDS Analytics study by Arcview Market Research.
Arcview found that the average dispensary takes in approximately 12 percent profit after taxes. This is about the same average profit margin for a Starbucks.
“This report shows that retail cannabis could be as big as the iPhone. It’s clearer than ever that there is a pot of gold at the end of the rainbow for those investors and operators who are willing to deal with the uncertainties and difficulties of current regulations,” said Arcview CEO, Troy Dayton according to the Press Herald.
“Cannabis stores are unlike anything the retail world has seen since big-box stores wiped out much of the specialty store business in the 1990s,” said Arcview Market Research Editor in Chief, Tom Adams. “And because of federal prohibition, publicly traded retail companies are just going to have to stand aside while entrepreneurs pursue this unique retail opportunity.”
The report also took into consideration that dispensaries are unable to take advantage of most business tax credits since marijuana is still a federally banned substance. Dispensaries are forced to make up for the lost money by including it in the retail price of products. It seems possible that marijuana dispensaries could become even more profitable if federal law changes.