The Department of Labor recently published sales data for November of 2023 with total sales of $110,344,601 (Medical sales of $14,521,352 and Recreational sales of $95,823,249.) This makes November of 2023 the lowest total sales month since February of 2017. (Medical sales were the lowest since prior to 2014 with Recreational sales at their lowest since February 2019.)
2019 as a historic Benchmark?
If you attempt to remove the difference in sales in Trinidad in 2019 and 2023 you will find that Recreational sales are only -1.77% lower for the period of Jan-Nov. So, is 2019 a good benchmark for performance? Ultimately, no it is not.
While Recreational sales are only slightly lower when factoring out Trinidad’s cross-border sales, the number of Recreational dispensaries has increased. There were 686 Recreational dispensaries in the state as of November 2023 compared to 572 Recreational dispensaries in November 2019.
If we then average the total revenue by the number of dispensaries (Recreational) we get an average of $1,811,181.13 per license in 2023 for Jan-Nov and an average of $2,260,602.66 per license in 2019 for Jan-Nov. This means that on an averaged basis, Recreational dispensaries are doing approximately 19.88% lower revenue in 2023 than in 2019. But averages are just that… average, with some dispensaries still doing well and some dispensaries not doing well in the downturn.
So how do businesses weather the storm?
Ultimately, if a business has and maintains a positive cash flow it should be able to weather market declines.
As they *should say “Cash flow is King!”
So, in order to help, we will be starting our Cash Flow Insights series next week.
Stay tuned to see how you can improve the cash flow in your business.
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