In business, every expense is—or should be—a calculated investment. Typically, expenditures are based on their predicted effect on the bottom line and estimated as a percentage of projected revenue. This is especially true for dispensary marketing budgets, without which no company can expect to expand its customer base.
Dispensaries are not immune from the need to market or budgetary constraints, but determining spend and measuring results can be a bit tricky in an industry where all commerce is hyper-local. With the average dispensary raking in $1 million per year, according to a 2020 Statista report, what is a reasonable marketing and advertising budget?
In general, a dispensary should allocate to marketing anywhere from 3 percent to 9 percent of sales or more on a monthly basis. Assuming $1 million per year in sales, that’s $2,500 to $7,500 per month.
Each business faces its own set of market forces, which ultimately determine how it conducts marketing and advertising campaigns. When determining what dispensary marketing budget you may require, ask yourself the following questions.
How big is the market you serve?How many competitors do you have?How may seasonality affect consumer traffic and revenue?What kind of media would you like