Managing The Hidden Costs of Cannabis Dispensary Build Outs Pt. 2

Designing and building a cannabis dispensary is a costly endeavor, with expenses encompassing construction, equipment, consulting, and licensing fees. Budgeting is crucial, but the unexpected expenses associated with cannabis retail can drain finances, cause construction delays, and even lead to project cancellations. However, by focusing on scalability and involving experienced professionals, dispensaries can successfully navigate the complexities of store build outs while effectively managing costs.

Scalable Design and Build Out for Dispensaries

When cannabis retailers embark on a new store build out or expansion, it is important to consider scalability in design. Scalable design refers to creating a flexible and adaptable space that can accommodate future growth and changes. By incorporating scalable design principles from the outset, operators can avoid hidden costs that often arise during dispensary build outs.

Dispensaries aiming for long-term success should anticipate growth and expansion. Scalable design allows for easy modifications and additions, eliminating the need for extensive remodeling or costly renovations down the line. By considering future space requirements and incorporating flexibility into the initial design, cannabis retailers can minimize disruption, save on construction costs, and seamlessly adapt to changing business needs.

“When we first design a store, we ensure it is scalable and sets standards for the brand,” said Virginia Maggiore, Principal of RDC. “That way you could have one, ten, or one hundred locations that operate the same and offer a consistent customer experience every time.”

Scalable design extends beyond physical space considerations. It also includes the ability to reconfigure the store layout to adapt to new merchandising strategies and design trends as needed. By incorporating modular fixtures, adjustable shelving systems, and flexible display areas, cannabis retailers can easily modify the store’s layout to optimize traffic flow and enhance visual merchandising without incurring added expenses.

Scalable design requires careful project management and budget control, so operators should engage with experienced professionals and consultants early to identify hidden costs, establish realistic budgets, and manage the project timeline. Proper planning and coordination minimize rework, change orders, and delays, which can significantly impact costs.

To future-proof their stores and avoid hidden costs, dispensaries should prioritize flexibility and anticipate growth. Investing in scalable design from the start creates a foundation for success, long-term cost savings, and a seamless shopping experience for customers.

Furniture, Fixtures, and Equipment Sourcing for Dispensaries

When setting up or renovating a cannabis retail space, dispensaries often focus on the visual appeal and functionality of their stores. While careful attention is given to the layout, design, and product selection, the costs associated with sourcing furniture, fixtures, and equipment (FF&E) are often underestimated or overlooked.

One of the primary challenges is accurately estimating the total cost of FF&E sourcing. From the initial purchase price to delivery fees, installation costs, and unforeseen expenses, the true cost can easily exceed the initial budget. It is crucial to conduct thorough research and create a comprehensive budget that considers all possible expenses to avoid unexpected financial burdens.

“Supply chain issues can cause higher material costs and longer lead times than most operators expect,” said Virginia Maggiore. “Dispensaries should prepare for delays, procure materials and equipment early, and involve experienced professionals capable of establishing realistic timelines for the build out.”

Dispensaries may also need customized FF&E to align with their branding or store aesthetics, such as custom finishes, branding elements, or structural alterations. However, customization often comes with additional costs and extended lead times. Cannabis retailers should account for these expenses and consider alternative options that can achieve the desired look without excessive customization.

“A good designer can balance the design by pairing highly customized fixtures with off-the-shelf pieces to create a unique look and feel for a brand, without the added cost or time,” said Virginia Maggiore.

When cannabis retailers embark on the journey of FF&E sourcing, they must be aware of the hidden costs that can impact their budgets and bottom line. By taking a proactive approach and considering all potential expenses, dispensaries can make informed decisions and minimize financial surprises – creating a positive shopping experience for customers while maximizing the return on investment for the dispensary.

Mechanical, Electrical, and Plumbing Installation for Dispensaries

When dispensaries build out or renovate a store, they often focus on the aesthetics and product displays. However, the behind-the-scenes work of mechanical, electrical, and plumbing (MEP) installation is crucial for the store’s functionality and customer experience. Unfortunately, dispensaries may encounter hidden costs associated with MEP installation that can strain their budgets and timelines.

Every cannabis retail space is unique, and unforeseen challenges may arise during the MEP installation process. Existing site conditions, such as outdated wiring, inadequate plumbing infrastructure, or structural limitations, can require modifications or upgrades that were not accounted for in the initial budget. Conducting thorough site inspections and engaging professionals who can anticipate potential issues can help dispensaries plan for these hidden costs more effectively.

“With a little more upfront scrutiny of a site, you may find that huge updates will need to be conducted to make the building into a dispensary, especially if it is an industrial building that wasn’t designed for retail,” said Virginia Maggiore.

MEP installations involve the coordination of various contractors, including electricians, plumbers, HVAC technicians, and more. Poor coordination or miscommunication among these professionals can lead to delays, rework, and increased costs. Cannabis retailers should allocate resources to effective project management and ensure clear communication channels among all parties involved. Additionally, after the MEP systems are installed, ongoing maintenance and service requirements are inevitable. Cannabis retailers should budget for regular inspections, repairs, and potential emergency services.

Mechanical, electrical, and plumbing installations are essential components of any dispensary’s infrastructure. Understanding the hidden costs associated with MEP installations is crucial for cannabis retailers to accurately budget, plan, and execute their projects successfully. By investing in upfront planning and design, dispensaries can mitigate hidden costs to create a functional, safe, and efficient environment for their employees and customers.

How Can RDC Help?

RDC’s team of expert architects and designers have worked extensively with retailers in the cannabis industry. Our team works closely with dispensary owners to design successful and compliant dispensaries with impactful branding, thoughtful merchandising, and scalable space planning. Whether you’re looking to design your brand from scratch or redesign an existing dispensary brand, we’re ready to get started on your cannabis retail project!