See our list of currently-operational Dispensaries -
Enterprising Oklahomans were working passionately and quietly this past fall. Advocates who were loud and circumspect for sound govt. policy, and now buried in the details of old fashioned merchandising. It is the 2018 version of the 1889 event that gave away limited real estate tracts. But this time the prize is market share.
We're talking about the first season of medical marijuana dispensaries; or as their marketing agents call it: Cannabis Medicines.
The first step was to secure a business location. People who owned land in a business zone or in rural unzoned areas, had an advantage. The growers were the most crucial component because until they had a harvest, nothing else mattered.
But with crops germinating in mid September, it was obvious that optimal harvests would occur in November or December.
Meanwhile, the retailers were aware that they had just weeks to set up the more complexed retailing businesses. Those who were selling CBD Oils, were an obvious group of potential Cannabis Medicine Dispensaries. they already had a client list and some cash flow. Their neighbors were less likely to create local obstacles to getting permits from the municipalities.
By mid December there were about 20,000 licensed patients in Oklahoma, but there where nearly 800 dispensary licenses. Those numbers are unsustainable because if every dispensary license becomes operational, then there are only 25 patients per dispensary. If a patient purchases 1 ounce per month on average, That's a cash flow disaster.
One little-known problem for the legal medical marijuana businesses is that they cannot write off any business expenses for product which the federal govt. says is illegal to possess. This means the businesses pay taxes on much of the expenses which would be deductible is a drugstore was selling a legal controlled drug.
Health Dept Director, Tom Bates, says that he expects to issue about 80,000 licenses in the first year. A portion of those patients will either opt not to go the route of treatment with Cannabis or become gardeners of their own medicine and thus do nothing to support any of the businesses. Let's suppose that faction is 30%. Then the remaining 55,000 patients will maybe support 150 dispensaries at best. I say this because if a dispensary sells 16 1-ounce of cannabis sales per day (or equivalent of ingestibles), then over a 30 day month they will have served nearly 500 customers. 100 similar dispensaries would then have served nearly 50,000 individual sales.
Some of those entering the industry are setting up a vertical model of growing, processing, and selling the medicine; all within their own corporate structures. They may be able to survive where other ventures throw in the towel. It's clear that survival in this commercial venture requires good old fashioned hard work, frugal management, and creative use of assets to avoid being taxed into bankruptcy. The Feds are raking in a massive windfall by keeping it a schedule 1 banned drug. Even patients will not be able to deduct medical bills for cannabis treatment.
This spreadsheet shows the list of results when our researchers typed in 'dispensary' into the google map for the Tulsa metro area & the OKC metro area.
We then separated the results by those with listed 'store hours' and those who had not yer updated google for their business.
Yes, this could have misleading results, but right now it seems to be the best way to research nearly 450 license holders in the 2 metro areas.