cannabis cash management Archives

CIMA’s 5 Ps of Doing Business with the Cannabis Industry

Since the first recreational dispensary opened in Colorado in 2014, the retail cannabis industry has steadily gained momentum across the country. There are more than 7,000 dispensaries across the United States and over 12,000 cultivation licenses for growers. The industry generated $26.5 billion in sales in 2021 and is projected to top $32 billion in 2022. CIMA is proud to be part of this industry, and we are guided by our 5Ps of doing business with dispensaries:

Practices

With the staggering amount of money to be made supporting the cannabis industry, it is no surprise that many companies display a green leaf on their brochures and promote their services and products to dispensaries and growers.

CIMA is different. We understand that the cannabis industry needs dedicated techniques, tailored recommendations, and industry-specific procedures. To best serve the needs of the cannabis industry, CIMA approaches each client situation without a preconceived notion because we realize that no two businesses are the same. Learning the specific challenges of each establishment is integral to CIMA’s multi-step approach:

Discovery: We dig deep to uncover a particular cannabis business’s unique challenges. Cash handling procedures, cash volume, security concerns, number of locations, reporting requirements, and many other variables are important factors in determining the best suite of solutions.
Consultation: We draw on our industry experience to identify possible products and services that meet the business’s cash handling needs and budget.
Collaboration: We work with our engineers, installers, the customer, and trusted CIMA certified partners to implement the best configuration of hardware, software, and ongoing support that will increase efficiency and reduce the cost of handling cash.

“If you’re like me, I was going crazy dealing with the cash in my retail locations. My life changed after I put the CIMA cash machines in. Cash is secure; my staff is on the floor with customers, not dealing with cash issues in the back office. I would never open a store without them.” -Tom Denha, CFO/CEO of JARS

Partnerships

CIMA is dedicated to helping the cannabis industry thrive. As a heavily involved manufacturer, CIMA is always working with our partners to strategically dive deep into each client. Whether engaging with partners and clients, networking at industry events, or staying informed about cannabis-related legislation, CIMA has proactively built relationships and developed expertise in the sector. Our customers benefit from our extensive experience working with cannabis retailers and our industry connections. We have a number of partnerships and are always exploring new partner relationships as we focus on finding the most knowledgeable and respected service companies and industry minds, investing in our partners as a result.

EMC
CIMA is active with The Emerging Markets Coalition (EMC), a non-profit organization that advocates for the normalization, electronification, and increased accessibility to complete financial services for cannabis-related industries. EMC members are cannabis-related industry players who proactively drive relationships and workable legislation, regulation, and public perception. CIMA supports EMC’s strategy of making cash transparent, traceable and taxable.

MJ Bizcon
CIMA is excited to join other innovators serving the cannabis industry again at MJ BizCon in Las Vegas this November. The premier event is attended by over 35,000 cannabis executives worldwide. Professionals from all levels gather to make deals, hear the latest industry trends and insights into the current political landscape, source the right solution providers, and gain knowledge from leaders in the industry.
Visit our booth in the South Hall Upper #10125.

Are you interested in learning more about CIMA’s involvement in the cannabis industry or exploring ways to partner? Click here.

Products

One thing that has not changed in the cannabis industry is the dependence on cash. Due to federal regulations, most of the billions spent on recreational marijuana are cash-only transactions. Dispensaries must keep track of every dollar and maintain meticulous records to remain in compliance. CIMA offers a broad range of solutions that have proven to be effective tools for the cannabis industry:

- Point-of-sale cash recycling kiosks
- Back-office recyclers
- Smart safes
- Cash handling machines
- CIMA software: C-Link, CAOS

CIMA machines are equipped with dedicated software that sets user permissions, creates electronic records of all transactions and is configurable for specific needs.

Please click here for more information on CIMA’s cannabis line of products and services.

People

Vik Devjee is the Vice President of CIMA America, and he has collaborated with cannabis clients on their cash handling procedures from conception to completion. In this role, Vik has helped dispensaries and growers navigate the complex cash handling regulations of the industry. Vik recounts how the sector has grown, and his early experience with the cannabis industry:

“Learning about the cannabis business has been exciting. You can watch a whole industry emerge from the shadows and into the legitimate business space. It’s very community-based and has a spirit of grass-roots cooperation.”

Vik knew what was needed as this business sector grew for CIMA.

“I realized that it was essential for CIMA to find someone who was laser-focused on this sector – someone who could lead the charge in customer service and advocate for the cannabis industry, as well as help them manage their cash handling challenges. And I’m happy to say that we have found that person. We recently welcomed Julie Cudd as our Business Development Manager for the cannabis sector.”

As CIMA’s Business Development Manager for the cannabis sector, Julie will be responsible for developing strategy and support initiatives for cannabis businesses throughout the United States. Julie approaches the challenge from a consultative and collaborative standpoint, and her ultimate goal is to help businesses thrive, not just sell CIMA’s products and services.

“As a family-held company with global recognition as a leader in cash management solutions, CIMA’s emphasis has always been on relationships,” says Vik. “And Julie has the perfect personality to develop those relationships.”

“I’m thrilled to be part of this business,” says Julie. “The people who make up the cannabis sector are the most passionate industry experts. It is a pleasure to work with them. I can draw from my background in fintech, retail management, security, cloud technology, hospitality, payments, and training. I’m excited to help cannabis businesses reduce their cost of managing cash, but more than anything, I value these businesses and love this role because it allows me to be a trusted business advisor in an industry that often deals with a lot of grey. Cash management is painful for cannabis businesses. My goal is the make that the most simple streamlined part of their business.”

To contact our team of dedicated professionals, or to learn more about Julie or Vik, click here.

Purpose

CIMA is dedicated to helping businesses reduce the cost of managing cash. We accomplish this through continuous investment in innovation, best practice manufacturing, and collaboration with our worldwide business partners.

For cannabis dispensaries, CIMA works with business operators to reduce time, control costs, increase revenue and accuracy, and increase security when managing cash. Our solutions are delivered through a network of highly capable partners to implement and support our solutions for the cannabis industry. CIMA Cash Handling America supplies a broad range of solutions to businesses across Banking / Financial Institutions, Retail, Hospitality, and Gaming – not just cannabis.
To learn more about CIMA, click here.

Cannabis and Cash: Best Practices 2022

Legal cannabis is poised to become a $30 billion U.S. industry in 2022. At this point in the commercial cannabis timeline, only 18 states have legalized the plant for medical sales, recreational use, or both. Unlike the earliest cannabis dispensaries, retailers entering the market today can hit the ground running. Businesses in the cannabis space can draw from examples of successful retail programs, best practices, equipment, and vendor partners with relevant experience in the industry.

Although the retail cannabis industry has become more sophisticated, streamlined, and experienced, one thing has not changed – the use of cash for most transactions. The SAFE Banking Act protects financial institutions and other professional service firms from federal liability for conducting commerce with legal cannabis businesses. However, the Senate ultimately removed the SAFE Banking Act from the December 2021 defense spending bill. Bipartisan cooperation at the federal level is unlikely this year which means that cannabis dispensaries will continue to operate almost exclusively in cash, at least for the near future.

Several dispensaries now utilize automated cash handling machines that integrate hardware and software for a seamless cash management solution. The cash automation systems best suited for cannabis outlets include back-office cash recyclers and smart safes. A reliable cash automation system from a trusted manufacturer checks many boxes for cannabis retailers:

Complies with regulations

Cannabis businesses are highly regulated, and accurate record-keeping is critical to meet compliance. Dispensaries must keep track of every dollar and maintain meticulous records. By automating with cash management devices, dispensaries can produce accurate, auditable records of cash flow in the business. All CIMA cash handling machines equipped with dedicated software set user permissions, create electronic records of all transactions, and are configurable for specific needs.

Recycles and stores cash securely

Taking cash payments and returning change for every single transaction requires a large capacity of reserve bills and coins to use throughout the day. It is not safe or prudent for employees to shuttle cash to and from the safe to replenish or store money. A cash recycler not only secures cash like a safe, but it also dispenses bills. Machines like CIMA’s Platino or Diamante back-office cash recyclers allow dispensaries to reuse smaller denominations for change or replenish tills. Surplus bills securely stored in self-sealing stacking bags allow CIT companies to transport cash easily.

Reduces labor costs

Depending on volume, dispensaries using manual methods may have to dedicate two or more employees to spend hours on register reconciliation each day. With the current labor shortage, automation makes more sense than ever. CIMA cash handling machines can dispense floats, reconcile tills and track cash quickly and accurately. The dispensary can focus employee attention on customer service and sales activities instead of cash management.

Improves security

Cash-intensive businesses are targets for crime. From outright smash-and-grab robberies to employee skimming, the risk of theft is very high. Cash recyclers and smart safes deter crime and keep records of all users and transactions. Counterfeit note detection is built into the machines and adds another layer of protection from fraud.

Provides industry knowledge from experienced partners

The market is crowded with companies wanting a piece of the cannabis pie. Identify vendors and partners with experience and expertise in the cannabis space. Look for a track record of delivering solutions to the cannabis industry and excellent customer support. By partnering with experienced companies, new and established cannabis businesses can benefit from industry knowledge and machines suited to the cannabis marketplace.

CIMA has worked with many dispensaries. Learn more of how we can help you. Contact us to discuss options.

Experienced Cash Handling for Dispensaries

Experienced Cash Automation for Dispensaries

The future of pot looks very green

On New Year’s Day 2014, Colorado opened the first regulated recreational marijuana market. In the years since, recreational cannabis has been legalized in 18 states, plus the District of Columbia and the territory of Guam. Recent surveys show that nearly 22% of U.S. adults have used some form of cannabis in the previous 12 months. Seniors citizens are the fastest-growing population of marijuana users. There is an exponential growth of retail dispensaries opening their doors to serve the growing number of consumers. According to industry research, the U.S. cannabis industry will reach $30 billion annually by 2025.

Jumping on the bud bandwagon

The cannabis market is attracting a flood of peripheral businesses claiming to address the unique needs and solve the specific problems of retail dispensaries. From technology to shop fitting to security and cash automation, vendors are jockeying for their own market share. Some of these support businesses are legitimate. Others see dollar signs and are jumping onto a lucrative bandwagon. The market is becoming crowded with startups, fly-by-night businesses, and enthusiastic entrepreneurs clamoring to offer a solution to any number of dispensary challenges.

Buyer beware

While startups and entrepreneurs are undoubtedly the lifeblood of technology and innovation, cannabis businesses must be careful with cash automation. Take time to research and evaluate if a particular company is genuinely solving a problem that no other vendor in the space has already addressed. Or, is this a money grab to take advantage of the huge demand? If a business offers an inferior solution to gain market share, dispensary operators can create long-term problems. It is up to dispensary owners and managers to conduct thorough due diligence.

Cash automation and cannabis

Dispensaries in the current market can only accept payment in cash due to federal restrictions. As a result, dispensaries have invested in a range of solutions to collect, manage, account for, and secure the considerable volume of cash that passes through the business each day. Providers of everything from simple safes and currency counting machines to more sophisticated full-blown cash automation solutions are racing to the market to convince dispensary owners that their product is better than the next. The demand is increasing, and owners need immediate answers. Companies with little experience in cash management are making grand promises yet falling short of expectations.

The right partner can make or break your business

Dispensary owners, take note – do your homework before you decide on a cash automation solution. Do you want to put your cash – your lifeblood – in the hands of an inexperienced startup? It falls on you to find providers with a confirmed track record of delivering solutions and solving complex cash handling problems. At the very least, you should look for the following qualities:

Proven track record
Excellent customer service and support
Comprehensive line of products
Integrated hardware and software solutions

Cash automation management in retail is not new. Cannabis dispensaries are fundamentally retail businesses with a more significant cash management headache. The cash automation industry is a mature market of providers. Many have been around for decades. They know how to deliver and support sophisticated cash management machines. Leverage that experience and solve your cash management problems with a trusted partner, not an inexperienced opportunist.

“If you’re like me, I was going crazy dealing with the cash in my retail locations. My life changed after I put the CIMA cash machines in. Cash is secure, my staff is on the floor with customers, not dealing with cash issues in the back office. I would never open a store without these!”

Tim Denha, CFO, JARS