Navigating High Taxes: What They Mean for Your Margins and How to Stay Ahead

Written by Martez Davis | Jan 15, 2026 8:34:56 PM

Michigan operators are facing a new challenge: a 24% wholesale tax that threatens profitability across the supply chain. But this isn’t the only shift on the horizon. With federal rescheduling to Schedule III and rising packaging costs, the industry is entering a period of rapid change.

The Impact of Michigan's 24% Tax

The new wholesale tax in Michigan is more than a minor adjustment—it’s a significant cost increase that affects every link in the supply chain. Operators must rethink pricing strategies, sourcing decisions, and operational efficiency to absorb this impact without sacrificing competitiveness. For many, this means evaluating vendor relationships, renegotiating contracts, and finding creative ways to reduce overhead.

Schedule III Rescheduling & What It Means

Federal rescheduling to Schedule III could reshape compliance requirements across the industry. While this change may eventually ease banking restrictions and open doors for research, it also introduces new reporting obligations and regulatory oversight. Operators who prepare now—by reviewing compliance protocols and updating documentation—will avoid costly surprises and position themselves for smoother transitions.

DEA Rescheduling Announcement.

Your Margin Protection Tool; Packaging Expense Audits

Packaging is often an overlooked cost driver. A packaging expense audit can uncover savings opportunities without sacrificing quality or compliance. In fact, we recently helped a customer uncover over $11,000 in savings through a detailed audit; proof that small changes can deliver big results.

Want to start a FREE packaging expense audit? Click HERE!

How DIZPOT Helps You Win

At DIZPOT, we provide solutions that go beyond packaging:

Strategic Sourcing: Lower packaging costs through optimized supply chain agreements.
Compliance Support: Navigate regulatory changes with confidence and clarity.
Margin Protection: Identify and eliminate hidden cost drains before they impact profitability.

Bottom Line:

The cannabis industry is evolving fast. Taxes, compliance shifts, and rising costs can erode margins if left unchecked. Don’t let these changes catch you off guard, partner with DIZPOT to protect your bottom line and position your business for sustainable growth.

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