Jane Provides Self-Service Cash Kiosks for Dispensaries
Retail outlets from all industries are re-imagining the retail experience with touchscreen kiosks. Cannabis businesses, thanks to the federal classification of cannabis, are forced to deal in cash. Denver-based Jane is offering a creative solution to the cash problem. Jane’s ATM-like kiosks could protect large amounts of cash and help divert criminal activity.
Jane kiosks are like ATM’s in reverse- a customer place their orders on the touch screen, insert their money, and take their receipt to the counter to receive their cannabis. These types of kiosks have already been implemented at McDonald’s.
Jane’s kiosks are assembled in Colorado and run for about $15,000 a piece.
Having so much cash and cannabis around is a big temptation for budtenders and dispensary employees. Employee theft is a huge problem in the industry, with shrinking inventories. “We’ve been through a number of different business models,” Jeff Foster, co-founder of Jane told Business Insider. “And in every model we worked on, eliminating the shrinkage makes it worth it for a dispensary to lease a Jane kiosk.” Shrinkage amounted to $45.2 billion in losses for all American retailers last year. Theft is much higher in an all cash business field.
The kiosks can be rented for a mere $2,495 and $3,495 a month, however, Foster says they pay themselves off by preventing employee theft. Compare that price to a month’s wages of a cashier.
Qualifying customers can pre-order using the Jane app before picking up their cannabis. Businesses can reconcile cash with the IRS much easier. Jane kiosks accept bills from $1 to $100, so you can deposit the exact amount.
Last month, the Senate Appropriations Committee voted to allow banks to handle cash from cannabis businesses. The absence of regulation is the only thing keeping big banking institutions from interacting with cannabis businesses. According to Foster, banks won’t work with cannabis businesses until a mechanism for auditing is available. Without that, any cannabis business is too much of a liability.
Transparency would change everything. The complex regulatory market in most states can help business owners account for cash and inventory.
Steve Ellerstein, the CEO of Jane is well aware of how far the industry has come since the beginning. “They saw all dollars as cartel dollars, but we could show them that we had compliance and we are business-minded in how we manage our cash,” Ellerstein told CNBC. “It’s providing greater user experience, efficiency and convenience for the consumer, and providing the dispensary owner with its cash controls and regulatory compliance.” Ellerstein recognized the need for kiosks a few years ago when he realized dispensaries had to hide their cash until it was depleted.
The reputations surrounding cannabis certainly has an effect on banking institutions’ decision to avoid the industry.
A point-of-sale kiosk is a fairly new concept. KioWare Kiosk Software is also developing its own cash-accepting kiosks with security software. The cannabis industry will never be the same.
Benjamin Adams has been a journalist since 2006 and is the Californian correspondent for Cannabusiness.com.
His written work has been seen in Cannabis Now Magazine, Culture Magazine, and Treating Yourself Magazine. He’s also written for Merry Jane and MedicalMarijuana.eu
Benjamin studied Art and Argumentative Writing at the University of Utah.
He’s tried cannabis in places ranging from Copenhagen to Jamaica.