It’s not an overstatement to call the cannabis industry’s current situation something akin to ‘barely controlled chaos’. The questionable legality of the product, in conjunction with its meteoric rise in popularity, has created an explosive situation where legitimate, legal growers, distributors, and sellers are squeezed simultaneously by the state and criminal elements while illegal operations thrive.
California is home to some of the biggest illegal growing operations in the country – so many, in fact, that the state is expanding its already massive search-and-destroy operation for illegal pot fields. These growers hold some major advantages over their legal counterparts – not only do they have access to both legal and illegal markets thanks to a dizzying network of distributors, but they also are not subject to the onerous taxes imposed by the state. These taxes can reach upwards of 50% in some areas, and the drop in price created by a flood of product on the market has caused margins to slim dramatically for legitimate growers.
This tax burden is beginning to show a dramatically negative effect on the legal market – cannabis is taxed when it’s sold by growers, then again when distributed to retailers, and then a final time when sold to consumers. Legal cannabis can cost upwards of three times what you can get it for off the street or, more likely, off of an illegal dispensary posing as just another pot shop.
These increased prices don’t just mean less profits for the legal cannabis businesses. The legal grey area cannabis sits in as a product means most banks won’t allow for legal growers and sellers to open up a checking account. This means that many sellers are forced to deal primarily in cash – and pricier pot means more money on hand.
A thriving black market for their inventory and a huge amount of cash on hand means dispensaries and legal growers are prime targets for both opportunistic and organized criminal elements. Dispensary robberies have grown by double digits year over year since cannabis became illegal in California and elsewhere, creating yet another huge obstacle for distributors to hurdle as they struggle onward toward an uncertain future.
While there is little operators in the cannabis industry can do to change the legal aspect in the short term, they can begin taking steps to help combat loss caused by crime. Cannabis grower security systems will likely become an increasingly necessary investment as California continues to mire in its self-caused misery.
An airtight security system is far more involved than installing some cameras and hiring guards, however. Professional security firms like Cannabis Compliant Security Solutions (CCSS) can help implement a security plan that will shield you from both state fines and any potential loss from theft and burglary.
The CCSS team will analyze your physical property, budget, and insurance policies to create a holistic plan that will ensure that every part of the security system is both compliant and as physically secure as possible. As the business owner, CCSS believes you have enough problems on your plate without the added worry that you missed something in the fine print that will lead to a ruining rejection of your insurance claim.
If you’re operating in the legal cannabis space and are looking to take some action that will provide stability and protection in the face of the current chaos, give CCSS a call. They provide security solutions that will let you get some sleep tonight.
Cannabis Compliant Security Solutions