As the cannabis industry has grown, the premiere holiday has also grown – 4/20. While the entire industry is centered around this day, it is primarily a consumer and retail holiday. Every person who comes out to a dispensary is looking for one of 3 things: 1) Being part of a community 2) A fun time / event 3) Good deals. That is exactly why 420 is a perfect opportunity for you to liquidate your inventory.
Deals are the primary driver for most consumers, so offering smart discounts and offers will drive sales. However, another benefit for dispensaries is 4/20 is a great chance to use the allure of “good deals” to help liquidate aging inventory and free up space in your vault. There are a number of different ways to offer discounts to drive customers in, we’ll discuss common discounts that are also effective at moving inventory.
BOGO deals allow a consumer to get a second item of the same product type for “free” with the purchase of one, as long as the second item is of equal or lesser value.
Pros: BOGOs are excellent for incentivizing purchase of a specific type of product. Easy for consumers to understand .
Cons: May be a turn off for customers who aren’t interested in that product line
In conclusion: BOGO’s are great for clearing a specific inventory category. For example, if you have an abundance of flower, you might offer a bogo on half-ounces for a brand or strain that hasn’t been selling. The risk i
Penny pre-roll discounts typically involve selling a customer a preroll for one cent as long as they hit a purchase total minimum.
Pros: Great for moving older inventory, or products that haven’t sold well
Cons: Some customers may choose to get in line multiple times to “game” the system and get multiple pre rolls
In summary: Penny pre-rolls are a classic discount where consumers know they are getting something basically for free, as long as they hit the minimum. Because they are a penny, customers don’t expect much from the pre-roll, so they won’t mind that its an older item you are clearing from stock. But the real secret isn’t tying a penny pre-roll to a total purchase amount, its tying it to another type of inventory you are trying to clear. Say for example you have a brand that isn’t selling well. Tie your penny pre-roll to the purchase of anything from that brand to help clear it from your shelves.
Bundling requires customers to purchase a mix of products in order to get the discount, which usually takes the form of either a percentage or a flat amount off the total.
Pros: Bundles help increase your average basket size and can move more inventory out the door
Cons: Bundles can be confusing for customers to take full advantage of
In summary: Bundles are the best option if you have a variety of aging inventory that needs to be cleared out. The bundle promotion can require every part of the bundle be part of the old inventory you are looking to clear. The main issue is that the more complex or restrictive the bundle is, the less likely a customer is to take you up on it.
Customers will be coming to your dispensary expecting deals, and you should be spending time in the lead-up to 4/20 building the right deal structure to bring in as many customers as possibles. 4/20 is one of the few times of the year when you can more easily clear out a lot of your older inventory, and customers will expect it. Appature can help you form what the inventory-clearing deals by helping you analyze your inventory.
Aging inventory shows you the types of products that are aged to point (90 days and older) where they may be difficult to sell. Received package aging shows you which products and brands are taking you the longest to sell, and stagnant inventory identifies the products and brands that have been sitting, completely unused on your shelf and in the vault.
Received package aging shows you which products and brands are taking you the longest to sell:
Stagnant inventory identifies the products and brands that have been sitting, completely unused on your shelf and in the vault:
Not all of your deals and promos for 4/20 should be about liquidating your aging inventory, but there is no opportunity like the premiere cannabis holiday to clear space from your vault. Appature will tell your old inventory down to the specific package tag to get you ready for the most important retail day of the year. Sell more product and keep your customers happy with Appature. Happy 4/20 and happy reporting!