Business Strategy
Cannabis Delivery Pricing Strategy
Most cannabis delivery operators undercharge. This guide covers the pricing levers that determine whether your business makes money.
The three revenue streams
Cannabis delivery businesses have three potential revenue sources: delivery fees charged to customers, commissions or fees from dispensary partners, and markup on products (where legally permitted). Most operators rely primarily on delivery fees and partner agreements.
Setting delivery fees
Your delivery fee should cover driver cost, vehicle expenses, insurance, and margin. A typical structure uses a base fee ($3-7) plus distance surcharges. Consider peak-time surcharges for high-demand windows (Friday evenings, weekends).
- Base fee: $3-7 depending on market
- Distance surcharge: $1-3 per tier (0-5 mi, 5-10 mi, 10+ mi)
- Peak surcharge: $1-3 during high-demand windows
- Free delivery threshold: after 5+ orders to drive loyalty
Minimum order amounts
Set a minimum order that makes each delivery economically viable. In most markets, $35-50 is the sweet spot — high enough to cover costs, low enough not to deter first-time customers.
Partner fee structures
There are three common models for partner agreements. Platform-collected: you charge the customer and keep the delivery fee. Retailer-collected with monthly remittance: the dispensary collects and remits your fee monthly. Waived: you waive the fee in exchange for volume or exclusivity.