A Guide to Point of Sale Hardware Technology for Cannabis
In the fast-moving world of tech, new innovations frequently come around and revolutionize the way we live and operate.
With the cannabis industry working to reach a point of maturity, gone are the days when transactions, logs, and other data had to be kept in a little black book or on a clipboard.
With new dispensaries and craft grows coming to the Illinois market and beyond, one question that continues to pop up is how technology will help operators improve customers’ overall experience while maintaining operational efficiency.
In this Technology webinar series hosted by The Cannabis Community, and sponsored by Zebra Technologies, we bring together a panel of experts to provide our community with an educational overview and a few examples of how tech is revolutionizing the cannabis industry through point-of-sale hardware, QR, and Barcodes, RFID technology and supply chain management systems.
Moderated by Illinois Equity Staffing and MBMAdvantage
Panelist Tech Experts from
Cannabis & Hardware Technology Webinar
Table of Contents
Current State of the Cannabis Industry in Illinois and Technology 01:29
- The presentation will discuss the current state of the cannabis industry in Illinois and where technology fits in the grand scheme of things.
- Three amazing subject matter experts will give their tech insight from their perspectives.
Moderator and Expert Introductions 02:49
- Mark Peysakovich is the managing partner of MBM Advantage LLC, a firm that provides legislative and public affairs consulting, as well as community outreach alliance building, business development, and networking services to all industries.
- Shawnee Williams is a recruiter, instructor, and consultant of Illinois Equity Staffing, and her focus is on making the cannabis industry more equitable and accessible from a human resources perspective.
- Jim Remke is the Chief Marketing Officer for Point of Sale Remarketing Group (POSRG), a retail store technology and support supplier.
- Powell is the founder of Blue Ventures Mark Partners, a software development and IT consulting firm, and Blue Fund Rewards.
- Duane Roebuck is a recognized expert in technology within cannabis and traditional retail, and he works with thousands of reseller businesses in North America to supply them with the latest hardware products and innovations.
POSRG: Point-of-Sale Remarketing Group 04:33
- Jim Remke works to identify the hardware and service solutions that businesses and emerging markets can depend on to grow from launch to maturity.
- POSRG is a retail store technology and support supplier, offering reliable, cost-effective hardware and life cycle services for point of sale, kiosks, mobile devices, data capture, scanning, RFID scanners, security cameras, digital signage, servers, and networking.
- Whether your business is building new facilities and requires comprehensive solutions or if you’re looking to support your existing equipment, POSRG has you covered.
Blue Ventures Mark Partners and Blue Fund Rewards 05:40
- Powell is the founder of Blue Ventures Mark Partners, a software development and IT consulting firm, and Blue Fund Rewards. This crowdfunding platform focuses on raising capital for startup businesses and organizations in underserved communities.
- Powell is also the President of Ignite Technology and Innovation, headquartered in Chicago and near Pilsen. He also has a second space, Blue Lacuna, a co-working space, and his second that just opened up not too long ago, Momentum Coffee in the South Loop.
Blue Star 06:18
- Duane Roebuck is a recognized expert in technology within cannabis and traditional retail. He works with thousands of reseller businesses in North America to supply them with the latest hardware products and innovations.
- Blue Star partners with enterprise-level hardware and software solutions and seed-to-sale providers to maintain track and trace compliance.
- In his role, Duane strategically connects manufacturers such as Zebra Technologies, Elo, Star Micronics, LG, Hikvision, and others to cannabis software providers to assist in the development and demo equipment and channel strategies.
- Although Blue Star does not supply directly to licensed operators, Duane is a trusted advisor to organizations by educating them on the importance of purpose-built equipment and technology.
Overview of the Illinois Cannabis Market 07:19
- In 2013, House Bill 1 passed in Illinois, legalizing medical cannabis for patients with qualifying illnesses.
- The list of qualifying illnesses has grown over the years.
- In 2019, House Bill 1438 passed, legalizing cannabis for recreational use.
- As of September, it is estimated that Illinois may reach $500 million in its first year of recreational sales alone.
- House Bill 1 allotted for 60 licensed medical dispensaries, but currently, there are only 55 licensed medical dispensaries.
- It also allowed for 22 cultivator licenses;
- The state hasn’t determined if there will be potential for new licenses in the future as of yet.
- The state of Illinois will conduct a disparity study to determine the barriers to entries for social equity applicants and other demographics that have applied for licenses.
Technology in the Cannabis Market 09:43
- Operationally speaking, technology will be what will set apart the winners from losers once licenses are awarded.
- RFID can be used to quickly and accurately capture operational activities.
- Once a plant is tagged with an RFID tag, growers can use a reader to scan each transaction related to that plant and create a detailed history of when it moved and who without the need for manual entry and the potential for human error.
- The concept of a vertically integrated point of sale platform that will accommodate all the links in the cannabis supply chain will greatly improve the data available to growers and manufacturers, leading to more efficient development of new products.
- Genetic mapping enables producers to develop entirely new applications for how these plants are grown, allowing us to have many more options and far greater control over the kinds of products appearing on the market.
- Modern genomics might be the key to unlocking the plant’s ultimate potential.
- Several leading cannabis growers are engaging in efforts to sequence the cannabis sativa’s DNA, assembling a clear blueprint for how the plant generates its collection of chemicals within.
Panelist Introductions 11:42
- The panelists will be discussing how their professional careers intersected with the cannabis industry.
- They will also be discussing why technology is so important for this industry.
Introduction of Jim 14:30
- Jim works for a company which is globally the largest distributor of point of sale equipment.
- His company reached out to him to look at new areas they could enter into about 4-5 years ago.
- Jim thought cannabis was intriguing and had the potential to bring about significant revenue growth within their industry.
Jim’s perspective on Cannabis 15:00
- From Jim’s perspective, cannabis is similar to traditional retail, minus the regulations.
- Jim saw an opportunity to get into the industry and help people who are coming up with licenses, dispensary owners, growers, and processors.
- He wanted to educate them so that each of them had a substantial investment in the industry and make the right decisions from a technology perspective the first time.
- Jim wanted to provide technology that would help them grow as their business grows.
Introduction of Duane 15:52
- Duane has had a personal interest in cannabis for quite a while.
- He got involved in the professional world and was always trying to find a way to match emerging technologies with business development.
Technology in Cannabis Industry 18:13
- As companies apply for cannabis licenses, there isn’t necessarily this deep understanding or research or sort of work upfront to ensure that technology is integrated into every part of the application because it will be integrated into every part of the business.
- Technology needs to be integrated into every aspect of the industry from the beginning.
- Cannabis industry is an emerging arena that’s very exciting.
- Businesses need to introduce some technologies that can really help set themselves apart and make them a differentiator in the space.
Types of Hardware 19:55
- When it comes to technology, there’s a lot of emphasis on the budget for technology.
- Commercial-grade equipment and consumer-grade equipment are the two different types of hardware.
- Consumer grade equipment is typically bought from stores like Best Buy, Target, etc.
- Commercial grade equipment is usually offered through distribution or through a reseller.
- There’s a big difference in those things and there’s a cost difference too, but there’s a justification for the cost difference.
- The main factor is that you’re buying something that usually has a longer warranty and usually has.
Importance of early planning for hardware technology 20:44
- Hardware technology needs to be planned early on in the business.
- Waiting until the last minute can result in financial difficulties.
- Engage people early on that can help with hardware technology solutions.
- Create enough room in the budget for hardware technology.
Engaging with technology in the cannabis industry 21:11
- People need to look at the technology across the entire supply chain, not just the grow.
- Operational efficiency is important and can be improved by technology.
- People make the mistake of buying equipment that is not designed for business use.
- Some technology may not make sense for everyone, such as RFID.
- Engage with technology experts to avoid making mistakes.
Investing in technology for long-term business success 22:42
- People often make the mistake of buying consumer-grade printers that end up gunked up after 30 days of use.
- Investing in high-quality equipment can save money in the long term.
- Zebra Technologies is a leader in the industry and offers warranties on printheads if labels are purchased with the printers.
- Making an investment in technology is important for long-term business success.
Importance of education in cannabis technology 24:03
- Education is important for social equity applicants and those starting a business.
- Technology is a tool, and people need to learn about the different tools available.
- Collaborative groups, seminars, and workshops are important for learning about technology.
- People need to put enough education on the front end around technology to avoid buying equipment that does not make sense for their business.
Importance of working with trusted resellers 27:41
- People may try to research and put together hardware technology for their cannabis business, but it can quickly become overwhelming as the business grows and scales.
- As a business owner, it’s important to consider whether your time is better spent working on cannabis development and getting operational efficiencies, or looking into technology for your business.
- Working with trusted experts like Tracy and Jim can take the burden of hardware technology off of you and allow you to focus on your core business.
- Trusted resellers can provide education and help create a long-term professional strategy for your business.
Leveraging resellers as resources 29:06
- While it’s possible to do research on your own, companies like Tracy’s and Shawnee’s are here to provide information and show you all your options.
- Resellers can provide information on pricing, feature sets, and how technology will benefit your business.
- It’s important to get multiple opinions and lean on people who know the industry and technologies to make better decisions.
Specifics for dispensary technology 31:42
- It’s essential to connect with a good dispensary software program that feeds into tracking and reporting inventory in real-time, such as Biotrack.
- Dispensaries need security cameras, such as Hikvision, and network infrastructure for data conveyance, such as access points.
- Cellular failover, such as an LTE router, can help keep the business running in case of an internet outage.
- Printers and barcode scanning are necessary for tagging and tracking everything in the cannabis industry, from growth to dispensary.
Point of sale systems 33:46
- The point of sale system is equally important as the software for dispensaries.
- Business owners should utilize resources like trusted resellers to help set up the point of sale system for their cannabis business.
Importance of hardware technology in the cannabis industry 33:57
- The right hardware is critical to the smooth operation of a cannabis business.
- It is important to consider the aesthetics of the business when selecting hardware.
- Point of sale (POS) terminals are important hardware components.
- Star Micronics and Elo are top hardware providers who are advocates for the cannabis industry.
- It is important to leverage resources like POS RG to find the right hardware for your business.
Importance of software technology in the cannabis industry 35:19
- Software technology is critical to the smooth operation of a cannabis business.
- Software always leads because it is what makes the business run.
- It is important to select the right hardware to ensure that software runs smoothly.
- Hardware needs to endure a lot of day-to-day action and run for hours on end.
- Hardware needs to be able to handle many transactions over and over again.
- If the right hardware is not selected, it could burn out quickly, causing the business to suffer.
Budgeting for hardware technology 37:48
- The cannabis industry is very budget-conscious.
- It is important to think about what kind of business you want to have and how big of an operation you plan to run.
- A “good, better, best” approach can be useful in selecting the right hardware for your business.
- It is important to consider the investment cost over the long run versus the risk of running something that could fail.
Importance of having spare hardware components 36:45
- It is important to have spares on-site in case of hardware failure.
- If a lane or POS terminal goes down, it could mean tens of thousands of dollars lost each day.
- It is important to have hardware that is easy to swap in and out to keep the business running.
- It is also important to consider who will service the hardware if it needs repair or replacement.
Pricing considerations for hardware technology 39:50
- The cost of hardware technology varies depending on the business and its needs.
- Depending on where you are in the industry, it is not going to be super cheap or discounted.
Importance of Quality Technology 40:15
- It is important to prioritize quality over cost when it comes to technology.
- Investing in quality technology will save money in the long run.
- Building for growth is crucial to avoid outgrowing the technology quickly or experiencing failures.
- A cautionary tale was shared about someone who tried to save money on technology and lost $20-30k a day as a result.
Budgeting for Technology 44:18
- Building for quality and growth may seem expensive, but it is ultimately more cost-effective.
- A budget should be created with quality technology in mind, even if it is more than originally planned.
- It is advised not to skimp on technology, as it can hurt the business in the long run.
Learning from Colorado and Washington 46:42
- The states of Colorado and Washington have been in the cannabis industry longer and have met with technology.
- It is advised to look towards these states for innovative ways to incorporate technology in the industry.
Introduction 46:46
- COVID-19 pandemic has changed the way the cannabis industry operates.
- Dispensaries are limiting the number of people inside and have introduced delivery and drive-through options.
- There is a focus on making things contactless and cashless.
- E-commerce, buy online pick up in store, and cashless solutions are being developed for the industry.
RFID Technology in Cannabis Industry 48:45
- Metric is a tracking system used by the majority of recreational states that requires RFID on the cultivation side.
- RFID is used to track and trace plants, know their location, stage, and who moved them.
- RFID technology is being developed for use within dispensaries to keep up with real-time inventory.
- Dispensary owners are using RFID for loss prevention.
- RFID is utilized for product turnover by putting a field in the software that alerts when a product reaches its expiration date.
QR Codes and Payment Systems 51:20
- Visa and MasterCard do not allow credit card transactions for cannabis.
- QR codes are being used as electronic wallets for cannabis transactions.
- Reputable dispensaries are partnering with organizations that can do bank-to-bank transfers and set up apps to create electronic wallets for cannabis transactions.
- Some electronic wallets can be utilized at other stores outside of the cannabis industry.
Trusted Advisors and Solutions 47:50
- It is important to reach out to trusted advisors for solutions in the industry.
- POSRG and Tracy are trusted advisors in the industry.
- It is possible to reach out to the speaker for solutions, but they cannot sell any products.
Cannabis is Evolving 53:12
- The cannabis industry is constantly changing and evolving.
- The use of technology in the industry is improving efficiency and loss prevention.
- It is important to stay up to date with the latest technology and regulations in the industry.
Banking regulations 53:26
- Currently, cannabis is considered a Schedule 1 drug, which makes it difficult to work with federal institutions like banks.
- States like Colorado have propped up state banks that don’t have FDIC insurance to work with the cannabis industry, but this is not a long-term solution.
- E-commerce or bank-to-bank type transfers seem to be a legit solution for the cannabis industry, and some dispensaries are having success with them.
Blockchain in the cannabis industry 55:49
- There are conversations around blockchain in the cannabis industry, but more so on the hemp side.
- Hemp growers are looking at leveraging blockchain and RFID to track the biomassIn the context of cannabis, biomass refers to the total mass... after CBD is extracted out of it.
- Cannabis industry talks around blockchain will not be necessary until it is federally legalized, and there are larger grows and distribution networks.
Future of agriculture 57:51
- The future of agriculture is to track recalls and determine where the contamination came from.
- This will allow them to track products from farms to customers, and eventually credit customers for what they’ve grown or throw away.
- There are quite a few developers and technology folks coming up with blockchain-based solutions for cannabis, from tracking to payment solutions to security and ID.
Hardware technology challenges 59:43
- The technology is young and experimental in the cannabis industry.
- Difficulty with cannabis from a legal perspective makes it hard for young tech companies to raise capital to build out solutions.
Quality vs Cost: How to Choose the Right Hardware of Technology for Your Cannabis Business 01:00:00
- Getting ahead of the cost and pricing of equipment is essential.
- Contacting companies that offer commercial and enterprise-grade equipment pricing will help businesses plan ahead.
Planning and Pricing, Plus Warranty and installation considerations 01:01:21
- Consumer-grade equipment usually comes with a one-year warranty and becomes void if used in a business setting.
- Commercial-grade or enterprise hardware comes with a three-year warranty and can be extended up to ten years.
- Installations, drivers, and software needed for the equipment should be considered and planned beforehand.
Leasing and financing hardware equipment 01:02:41
- Leasing and financing options can help businesses reduce the cost of expensive hardware equipment.
- Unlike national companies, local businesses can provide quick turnaround times for support and repair.
Importance of support and updates 01:04:24
- Consistent support is essential when choosing a product or service, especially when updates and upgrades are necessary.
- Updates and upgrades can affect the equipment’s functionality, so keeping up-to-date is crucial to business success.
Industry Responsibility 01:06:00
- The Cannabis Business Association of Illinois discusses industry responsibility in the cannabis industry.
- The current players, including large entities and smaller license holders, should help support people trying to enter the industry.
- It is suggested that the current players should not assume that their ideas are what everyone is looking for.
- Applicants in the community are already communicating what social equity applicants and applicants from disproportionately impacted areas really need for support.
- Checklists have been suggested as a way to support applicants.
- Sometimes paying it forward is more impactful than anything else.
Best Practices for Entrepreneurs 01:08:35
- Entrepreneurs should be aggressive in seeking best practices and understanding about the business they want to enter.
- It is suggested that entrepreneurs should not be shy about getting best practices and understanding about the business they want to go into.
- Entrepreneurs should try to build relationships, have conversations, and find best practices around the business they want to be in.
National Shows and Periodicals 01:10:16
- National shows and periodicals are good resources to learn about the cannabis industry.
- MJ BizCon is the largest cannabis show and is typically held in December at the Las Vegas Convention Center.
- The National Cannabis Industry Association (NCIA) puts on a good show.
- GIE Media puts on the Cannabis Conference.
- Cannabis Dispensary Magazine, Cannabis Business Times, Marijuana Venture, and Entrepreneur are good periodicals to read.
- Most of these periodicals have a digital version that is free.
Other Suggestions 01:05:31
- It is suggested that companies should meet face-to-face in person when possible.
- Coffee shops and co-working spaces are great places to meet.
- Companies should be willing to share knowledge and information with other businesses in the industry.
Attending the Illinois Women in Cannabis Show 01:11:41
- The speaker mentions attending the Illinois Women in Cannabis Show.
- Jim and others have spoken highly of the show to the speaker.
- The speaker indicates that they are looking forward to attending the show once they are able to fly into Chicago.
- The speaker advises attendees not to be afraid to ask questions at booths and that most people in the industry are happy to share information.
The State of the Industry and Networking 01:12:01
- The speaker discusses the state of the industry and how different states are not competing against each other.
- The speaker advises attendees to take advantage of networking opportunities at events such as the Illinois Women in Cannabis Show.
- The speaker notes that most people in the industry are willing to share information because they want to see the industry grow.
- The speaker encourages attendees to connect with them on LinkedIn or Leaf Wire.
Infrastructure and Resources in Illinois 01:13:05
- The speaker talks about the infrastructure and resources available in Illinois for the cannabis industry.
- The speaker mentions medical cannabis community, Illinois Women in Cannabis, and Illinois Normal as resources.
- The speaker notes that there is room for more people to get involved with the industry in Illinois.
Q&A Session 01:13:42
- The speaker turns the session over to Shawnee for Q&A.
- One question is asked about technology evolving based on need and conditions such as COVID-19.
- Another question is asked about the Oklahoma cannabis market and what resources are available.
- The speaker suggests that adaptable kiosk platforms are being used in some states.
- The speaker notes that they can connect attendees with software partners or hardware suppliers depending on their needs.
Contactless payments 01:17:55
- People are more comfortable with contactless payments due to the pandemic.
- Look towards online solutions like buy online and pick up at the store.
- VIP lines are available for people who have already made their purchase.
- Utilizing mobile handheld computers and tablets to process payments and scan QR codes.
- Moving towards self-service and self-sufficient models.
- Tablets can be used as point-of-sale systems with rugged eye sleeves.
Preparing new professionals for the cannabis landscape 01:21:01
- Industry professionals can come to speak to classes and give insights into what’s happening in the industry.
- Students can ask questions and have a conversation with the industry representative.
- The students get information, and the industry representative gets to recruit and spread information.
Commitment to social equity 01:23:18
- The panelists are committed to social equity.
- Cannabis has impacted their lives and their families, and they want to help the black, brown, and women communities.
- Spend money with people trying to help instead of saving a dollar.
Utilizing tablets and kiosks 01:19:25
- Tablets and handheld computers are used to process payments and scan QR codes.
- Tablets can also be used as kiosks to provide educational content.
- Moving towards self-service, self-sufficient models.
- Tablets can be used as point-of-sale systems.
Line busting solutions 01:20:24
- Line busting solutions are used to manage crowded dispensaries.
- Tablets can be used as point-of-sale systems with rugged eye sleeves.
- With a simple twist of a key, the tablets can be popped off and used for line busting solutions.
Utilizing technology in the cannabis industry 01:17:56
- People are more comfortable with contactless payments due to the pandemic.
- Moving towards self-service and self-sufficient models.
- Tablets can be used as point-of-sale systems with rugged eye sleeves.
- Line busting solutions are used to manage crowded dispensaries.
- Tablets can be used as kiosks to provide educational content.
Importance of Collaboration in the Cannabis Industry 01:24:31
- Collaboration is important in the cannabis industry.
- Instead of hoarding information and trying to outcompete each other, it’s better to work as a collective.
- There’s plenty of opportunity in the industry and everyone can succeed.
- Attend events and utilize resources available to gain knowledge.
Growth Potential of the Cannabis Industry 01:25:04
- The cannabis industry is on pace to grow 40 percent year over year.
- This growth is happening even amidst the COVID-19 pandemic.
- There’s plenty of revenue for everyone in the industry.
Integration and Compliance for Cannabis Equipment 01:26:57
- A question was asked if the panelists provide full-service integration and onboarding for cannabis equipment.
- From a hardware perspective, integration involves integrating the components of the equipment or peripherals to the main base of the terminal.
- The panelists do plenty of integration and work hand-in-hand with software companies to ensure everything is working and running smoothly from a compliance standpoint.
Commitment to Developing a Better Solution for Enterprise Equipment 01:27:51
- The panelists commit to working with a software partner to develop a good, better, best scenario for enterprise equipment.
- They plan to do it by point of sale lane to ensure scalability based on dispensary needs.
Lessons Learned from Cannabis Clients 01:29:05
- It’s important not to cut corners when it comes to technology.
- Using cheap equipment can lead to problems such as slow scanners or falling apart displays.
- It’s important to invest in good equipment, especially for point of sale.
Technology and Cannabis 01:30:34
- Collaborate and learn how to work together.
- Build a network and cultivate relationships.
- Collaboration is key to success in the industry.
- Attend industry events and network.
- The ones who do well are the ones who collaborate.
- Opportunities for everyone in the industry.
Opportunity in Illinois 01:31:16
- Illinois has a tremendous opportunity in the cannabis industry.
- Illinois is the next big state in the industry.
- The distribution of licenses and craft grows was pushed back due to COVID-19.
- COVID-19 has minimized the impact that Illinois will have.
- Cultivate relationships and collaborate.
Technology as an Equalizer 01:32:22
- Technology is the equalizer.
- Invest in technology to be able to compete with bigger companies.
- Use technology to nuance what you do and make it different.
- Technology can give an opportunity to be as good as the big guys.
- Use technology to make things better.
Conclusion 01:33:43
- Thank panelists and audience.
- Thank sponsor, Zebra.
- Technology is complex in the cannabis industry.
- The event was educational.
- There is room for additional follow-up.
- Contact information for panelists.
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