Cannabis App Development
Ditch the Discounts and Try These Tips Instead
Posted by: Nikki Tabberrah
June 27, 2023
Keeping your dispensary profitable is key to its long-term survival. While it might be tempting to offer discounts to draw in customers all the time, doing it so often can hurt your bottom line. Instead, focus on smart inventory management and leverage retail technologies to maintain a healthy profit margin.
In this article, we'll share six tips to help you stop relying on discounts and boost your dispensary's profitability.
1. Stay Lean with Inventory
A crucial step to boosting profits is keeping your inventory lean. Stock only what's necessary to minimize carrying costs, reduce waste, and improve cash flow. Explore cannabis retail inventory management techniques, such as:
- Regularly reviewing sales data to pinpoint slow-moving items
- Using an inventory management system to monitor stock levels and reorder points
- Conducting routine inventory audits to catch discrepancies and avoid overstocking
By closely watching your inventory, you can stock just enough products to satisfy customer demand without tying up resources in excess merchandise.
2. Understand Your Customers' Desires
Knowing your customers' preferences and buying habits is key to offering products they'll love. Collect and analyze customer data to inform your product lineup and pricing strategies.
Use tools like a dispensary mobile app or e-com & loyalty program analytics to gain insights into customer behavior.
With insightful data on hand, you can tailor your inventory to better meet customer needs, leading to increased sales and less reliance on discounts to move products.
3. Curate Your Product Selection
Offering a curated selection of products not only sets your dispensary apart but also helps maintain profitability. Focus on high-quality, unique items that appeal to your target market, such as premium flower strains, artisan edibles, or cutting-edge accessories. Creating a cohesive and attractive product assortment encourages customers to make full-price purchases and boosts their overall satisfaction with your offerings.
4. Avoid Overstocking Similar Products
Too many similar products can confuse customers and weaken your brand's unique selling points. Instead, set your product offerings apart by:
- Identifying market gaps and sourcing products that fill those needs
- Showcasing items with standout features or benefits
- Removing redundant items from your inventory
Streamlining your product lineup makes it easier for customers to find what they want and reduces the need for discounting to clear out excess stock.
5. Be Unique
Everyone’s just catering to, well, everyone. Capture and cultivate some real audience by distinguishing your dispensary. You can do so by selling stock from niche or underrepresented businesses.
This not only promotes diversity and inclusion within the industry but also creates a unique selling point for your brand. Use these selling points in your marketing and promotional efforts to attract customers who appreciate socially conscious shopping choices.
6. Make It Easy For Your Customers To Shop
Accessibility is essential to any growing business. If your customers can’t find you, don’t expect sales to come in. Make it easy for shoppers to shop and find what they’re looking for. Got a website? Great. Got a brick & mortar? Awesome. How about a dedicated mobile app where people can shop and engage with your brand?
If you haven’t explored this option, here are ways a dedicated mobile app for your dispensary can make it easier for people to shop with you:
1. Smart product recommendations: A dedicated mobile app can offer personalized product suggestions based on a customer's browsing history, preferences, and purchase history. This helps customers discover new products, save them for later and increases the likelihood of them making a purchase.
2. Custom searches & filters: An app allows users to search and filter products based on their preferences, such as strain type, THC/CBD levels, or price range. This makes it easy for customers to find exactly what they're looking for, without having to browse through your whole inventory.
3. Loyalty programs & custom rewards: Integrate loyalty programs that reward customers for repeat purchases, referrals, and other actions.
4. Push notifications & promotions: With a dedicated app, you can send targeted push notifications about special offers, new products, or events directly to your customers' devices. This keeps them engaged and informed, keeping your dispensaries top of mind.
5. Convenient ordering: A mobile app can streamline the ordering process, allowing customers to place orders for pickup or receive delivery updates directly from their devices.
6. Enhanced customer support: An app can offer various customer support options, such as live budtender chat, FAQs, or a help center tab, making it easy for shoppers to get help.
To wrap it up, having a mobile app for your dispensary is a smart move to create an awesome shopping experience and keep your customers coming back. By paying attention to inventory management, understanding your customers, and picking the right products, you'll be able to cut down on discounts and make more money.
Give these tips a try, and may your dispensary enjoy long-term success!
Disclaimer: The tips, advice, and insights provided on this blog are intended for informational purposes only and should be considered as recommendations and market news. Readers are advised to conduct their own due diligence and ensure compliance with federal and state laws before making any business decisions. Digital Awesome will not be held liable for any damages or penalties incurred as a result of following the advice or information presented in this blog.