Best Practices For Conducting Transactions

Conducting successful transactions in the legal market requires the same care and attention that you give your plants during the growth cycle. It is important to stay organized during the entire seed to sale process. There should be a standard quality assurance procedure that takes place before anything leaves a cultivator’s premises and for intake where applicable.

Here are some Do’s and Don’ts: 

DO weigh your material again before it ships. The first thing a buyer will do upon intake is weigh out what they’ve received.  If possible, double check your weight with the purchasing party present and have them acknowledge that there are no discrepancies.

DO keep good records. If you are doing any sort of structured deal on a net payment term other than cash up front be sure to get your terms in writing. Don’t forget to update your paperwork to reflect any changes that may take place during the course of a transaction. 

DO consider the buyer’s first impression when packaging your product. Cannabis products come in a variety of grades and strains, and buyers will pay extra for the distinction. Here’s an example of a post on the marketplace that does a great job with presentation. There are clear photos, detailed information about the product being sold, and test results attached to back it all up: https://market.kushguide.com/product/5bec55003bac5f7379de4153

DON’T cut corners! Keeping meticulous records will save you a world of trouble down the road. Regulators will audit businesses, and it’s imperative to have your t’s crossed and your i’s dotted.  

DON’T forget to review product upon receipt. If you come across any problems with a product you’ve received it is important to address them right away. Be on the lookout for any visible issues like mold or mites, and other discrepancies like differences in weight.  

If you are not yet active in Track and Trace or using any Tractability System Software, you will need to generate this information and develop a labeling strategy with a schema of your own, or using freeware available on the internet.

Here are some free solutions that can help you with your labeling schema. The random code generator will generate unique codes to track your product with, and put that into the barcode generator to label your product: 

https://www.randomcodegenerator.com

https://barcode.tec-it.com/en/Code128

Always use the California Government Provided Shipping Manifest that can be downloaded here: 

https://static.cdfa.ca.gov/MCCP/document/2017%201221_FINAL_Sample_Sales%20Invoice%20-%20Shipping%20Manifest%20-%20Fillable%20PDF.pdf  

Your legal Sales are to be reported correctly to the appropriate licensing authorities without exception. This means you need to also have a properly formatted invoices accompanying the manifest outlining the base cost of product, as well as the pertinent cultivation tax associated with the products.

Keeping good records and getting into good business practices is an important part of operating in the legal market. We all know how the government loves their paperwork!

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