Surviving the Squeeze: What Oklahoma Dispensaries Can Do About Price Compression

Oklahoma’s cannabis industry is in a crunch. With one of the most open licensing systems in the country, the state saw a flood of dispensaries open in record time. But now, many operators are facing a harsh reality: prices are plummeting, margins are razor-thin, and competition is more intense than ever.

According to state data, wholesale flower prices have dropped significantly over the past 18 months, making it harder for dispensaries—especially independent, single-location operators—to stay afloat. The market’s oversaturation, paired with high operating costs and the never-ending impact of 280E, means it's no longer enough to simply have great product and loyal customers. You need a financial game plan.

Here are five strategies Oklahoma dispensaries can implement today to survive price compression—and even thrive in it.

1. Dial In Your Cost of Goods Sold (COGS)

COGS isn't just a tax number—it’s the core of your profit margin. Oklahoma dispensaries that aren’t allocating COGS correctly are missing out on legal deductions they can claim, even under 280E. Work with a cannabis accountant to:

• Build a compliant chart of accounts that distinguishes direct vs. indirect costs

• Embed purchase data directly into financial reports

• Track vendor pricing to ensure consistency and leverage volume discounts
  

💡 Pro tip: If you’re vertically integrated, proper intercompany cost allocations can open the door to real savings.

2. Forecast Cash Flow Weekly—Not Monthly

With pricing so volatile, monthly reports don’t cut it. You need to know where your cash stands right now. Shift to a rolling 13-week cash flow forecast to:

• Avoid over-ordering inventory you can’t move

• Time your vendor payments more strategically

• Plan for tax liabilities (especially quarterly state and excise taxes)
  

This is a key part of our Outsourced CFO Services, where we help dispensaries build financial visibility they can actually act on. 

3. Cut the Fluff: Lean Into Profit-Driving SKUs

Now’s the time to evaluate your product mix. Use POS data and customer insights to identify:

• Which SKUs turn quickly - Identify which cultivator brands sell through the fastest in Oklahoma

• Which high-margin items aren’t being promoted enough

• What to drop that ties up cash in slow-moving inventory
  

Then, sync that with your cost accounting. This is where financial data meets buying strategy—and it can make or break your margins.

We also offer our clients cost-free access to powerful retail analytics tools that can help power effective decision-making. We’ll help set up dashboards and track KPIs so your operation is running smoothly.

4. Renegotiate Everything

From rent to vendor terms, every fixed cost is negotiable in this climate. Some options to explore:

• Re-negotiate lease terms based on declining sales data

• Ask vendors for net-30 or net-45 payment terms

• Pool purchasing power with other operators to secure discounts
  

Operators in Oklahoma have more leverage than they think—especially if you come to the table with data in hand.

5. Create an SOP for 280E-Related Expense Tracking

You can’t deduct marketing or admin costs under 280E—but you can make sure those expenses are airtight and minimized. Create a standard operating procedure (SOP) for:

• Documenting direct vs. indirect labor

• Separating management salaries from budtender wages

• Tracking facility costs per-use (sales floor vs. back office)
  

When margins are tight, every legitimate tax dollar saved matters.

If your accountant is still using the 471(a) inventory accounting method, you’re leaving tax deductions on the table. We can help update your accounting method and optimize your tax position.

Here’s an example analysis we did for a Southwest dispensary, which shows the impact advanced accounting can have on tax liability.

Reduce Cannabis Tax Exposure

One of our clients was able to reduce their overall tax liability by 57% by using advanced inventory accounting methods.

Final Word

Price compression isn’t just an Oklahoma problem—it’s a cannabis industry reality. But operators who understand their financial levers are the ones who’ll survive and scale.

You don’t need to guess. You need visibility, strategy, and the right financial partner. At Growise CPAs, we work with dispensaries across Oklahoma to build systems that work in real-world conditions, not spreadsheets. Let’s make your numbers work harder, so you don’t have to. Schedule a free consultation today.