A Guide to Point of Sale Hardware Technology for Cannabis
Published by
TMCC Admin Team
11 months ago
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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