An ongoing problem that plagues the sale of cannabis

Cannabis retailers hear common complaints about the in-store experience. Fast interactions, uneven product knowledge and lack of useful guidance during sales all hurt revenue.

And yet they persist even in mature cannabis markets, where sales have had years to adapt to change.

What’s going on? In MJBizDaily interviews, operators and customers alike agree: the cannabis industry has an ongoing problem of budtender turnover.

Despite thoughtful investments in store design, digital menus and sophisticated sales technology, high turnover among front-line employees continues to plague marijuana retailers.

If budtends don’t stay long enough to build brand awareness and customer trust, facility visits feel inconsistent and inconsistent. Meanwhile, customer expectations – and the need for expertise – continue to rise.

The result is lost revenue. But luckily, operators have solutions.

What the data says about profitability, training gaps and experience gaps

Profitability is not a new problem.

According to the 2022 Headset analysis, 55% of budtends turn over every year, with almost a quarter leaving in their first month. In recent interviews, drivers say the situation has not changed.

In many regions, the number of products sold increased significantly as sales revenue remained constant or decreased slightly. That suggests sellers are busier than ever in other markets. However, employment in the industry fell by 3.4%, according to the Vangst US Cannabis Jobs Report, as overall sales increased.

The data does not say exactly why the frontline workers of cannabis dealers are a revolving door. But operators say frontline churn is rooted in economic pressures and role complexities.

Amid inflation and cost-of-living woes, pay is playing an important role: According to national budtender salary data from ZipRecruiter, hourly pay is tied to a narrow range, suggesting little opportunity for meaningful salary growth based on job or skill.

But the most common reasons for cannabis workers to leave are organizational transparency and compliance, according to Kurt Kaufmann, founder and CEO of cannabis endorsement platform Seed Talent.

“There is no clear understanding of what success looks like in their role or in their company, there is no support in reaching those goals and there is a lack of alignment between management and the people on the ground doing the work,” he said.

What breaks before selling

In many states, instead of people, operators have turned to kiosks and self-service ordering to manage wait times and transaction volume more efficiently. The value add is visible when the workforce is small.

But it’s not brand knowledge that gets lost when kiosks or new hires replace experienced workers. It’s reliable, says Tyler Bierbaum, a former budtender and current dispensary manager in California.

“Customers don’t want to play roulette with what they should expect every time they visit,” he said.

“Being greeted promptly, treated with respect and shopping that meets their needs at least as well as surprises and delights them are all essential to repeat business.”

Unexpected or excessive early turnover, he said, quickly leads to long wait times, inconsistent customer experience and disruptions in product availability, especially when back office staff are pulled forward to support the sales floor.

Data doesn’t tell the whole story: Look at the people, not the POS

And operators looking at spreadsheets or data from their POS rather than the sales floor may miss a problem before it gets out of hand. Employees are flexible and slow as processes break down.

“It sounds chaotic before the sales data shows it,” said Mike Dunn, owner of Toronto-based retailer 1922.

Faster, more efficient interactions in the retail space begin when salespeople are asked to do more with less, he said, such as multi-product integration, frequent promotions and ongoing order disruptions.

Trust is eroded, Dunn said, when new employees outnumber experienced employees on key shifts or when employee onboarding is shorter than the actual learning curve.

Why cannabis worker training continues to hit the roof

Training is often seen as the industry’s solution to these challenges. But training alone can’t solve the experience problem if it doesn’t fix the conditions that keep skilled workers out the door.

Most of the training salespeople hire doesn’t translate into lasting behavior change in high-churn environments, Bierbaum said.

“The training of many employees often goes in one ear and out the other,” he said.

Training often fails because it lacks a clear definition of success and a “north star” beyond income, Kaufmann said.

Training can reduce profits and increase sales, but only when paired with clear expectations, employee support and tangible career growth. Employees need a clear vision of success and future in the company.

Too often, operators still organize cannabis sales as a commodity business, rather than a specialty category built on transparency and reliability, Kaufmann said.

What really helps keep strong front teams

Cannabis retailers can implement practical changes that improve the customer experience while increasing lead retention, even in high-pressure environments:

• Effective grassroots leadership. Real-time training helps employees bounce back from difficult interactions and build confidence faster than periodic training.
• Role focus, not role overlap. Dedicated support roles minimize job turnover, ensuring that customer interactions are always considered rather than exploited or incidental.
• Compensation that reflects ability. Expecting great product experience for entry-level pay leads to poor retention. Most cannabis workers already earn more than minimum wage, but probably not more than other retail jobs. Competitive salaries indicate a skilled role and worth investing in.

And that shaping is important, Kaufmann said.

“If we pay the budtenders like they’re selling potatoes,” Kaufmann said, “that’s the experience the customers will get.”

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