Every cannabis retailer struggles with low selling or “dead” stock taking up valuable space. Rather than letting these products sit idle and eventually go to waste, it’s time to get creative with dispensary promotions.
You don’t want to give away the goods. Deciding which products should be discounted or part of a promotion shouldn’t be based on intuition, but facts. Dive into your historical data to gain a better understanding of your sales, margins, and waste to identify opportunities to optimize inventory, increase sales, and reduce product waste.
Understand Your Cannabis Inventory
The bread-and-butter of any cannabis retailer is the top selling, high-margin products that keep your loyal customers coming back for more. On the other hand, bottom selling, low-margin products are taking up space and dragging down profits. To create a mix of promotions that will keep your customers and bottom line satisfied, it’s important to identify your starting lineup, benchwarmers, and expiring products.
To get started, look at your top five and bottom five selling products and anything expiring within the next 60 days. This simple exercise gives you a great mix of goods to create smart promotions that will help move inventory and increase sales.
Easy Dispensary Promotions
We’ve setup some examples of quick and easy discounts and promotions that are sure to keep all your inventory moving:
Piggy-back off your best sellers. Give customers the option to add a low-selling, low-margin, or expiring product to their cart:
- Purchase 3.5G of Blue Dream, add a Purple Punch pre-roll for $5
- Purchase 3.5G of Skywalker OG, add *expiring product* for 50% off
Discount Expiring Inventory
Regardless of product or price, set up automatic, tiered discounts based on expiration date to encourage sales and reduce wasted inventory:
- 60 days out, 15% discount
- 45 days out, 20% discount
- 30 days out, 25% discount
- 15 days out, 50% discount
Buy More, Save More
Encourage larger carts resulting in increased sales with interval discounts:
- Add 3 item to the cart, 10% discount
- Add 4 item to the cart, 15% discount
- Add 5 item to the cart, 20% discount
These are just a few examples of discounts and promotions you can run to optimize your cannabis inventory. Ready to optimize your dispensaries inventory? Contact 365 Cannabis today to see what ERP can do for your cannabis retail store.