How collaborative use of retail insights helps operators unlock harmonious growth
The legal cannabis industry is sprinting, not strolling. In 2024, brands face a maze of retail storefronts, while retailers must quickly evaluate an ever-expanding catalog of product choices. Consumers? Savvy, informed, and demanding. To thrive and win in this dynamic space, brands and retailers can benefit tremendously by staying informed and united in their use of data.
As creator and architect of the largest scale retail data platform for the North American cannabis industry, CannMenus, I’ve spoken to hundreds of brands and retailers about how they can leverage dispensary retail data to maximize opportunity in their day-to-day operations. Let’s look at three ways brands and retailers can leverage SKU-level real-time dispensary retail analytics to maximize opportunity, increase sales, and score your cannabis concerto.
1. Price Harmony: From Discord to Duet
Product pricing strategy must be a coordinated dance, not a chaotic scramble. CannMenus Pro delivers instant updates on competitor pricing and consumer response across the market, helping you ensure your menu products are priced to sell without leaving margin on the table.
All the pricing intel you need in one spot. View nearby competitor list pricing side-by-side with average selling prices for your specific SKUs to dynamically fine-tune your pricing on a hyper-local basis and in real-time (Product Image: CannMenus).
Bonus Tip: See Beyond the Advertised Pricing Hype
Advertised pricing is only one dimension to track. It’s always best to look at the sales data to see what prices will make the product move.
Go beyond advertised pricing and look at the average selling price (ASP) within a particular region to expose the difference between advertised price and actual consumer buying patterns. For example, when looking at advertised prices for 3.5g packages of Flower in Toronto, CannMenus Pro shows you the ASP is 13.8% lower than the average retail list price, revealing valuable profit margin insights compared to those relying solely on advertised prices.
Encourage the use of ASP data to inform dynamic pricing strategies that reflect market realities and maximize profitability. Focusing on the data helps prevent the undercutting and over-discounting traps that can lead to a winless “race to the bottom.”
2. Inventory Rhythm: Never Miss a Beat
Empty shelves are the death knell of sales. Using continuously updated data, you can ditch the guesswork and address stock-outs before they become too costly. Brands and retailers can utilize CannMenus real-time stock-out monitoring and be notified promptly when products stock out or approach low stock levels in their stores.
Use data to justify purchases and quickly initiate reorders from relevant brands, ideally before shelves are even empty (Product Image: CannMenus).
Bonus Tip: Ditch the Guesswork and Embrace Data-Driven Reorders
Don’t arm your field marketing reps and inventory managers with day-old stock status data. Supply them with historical sales velocity data to justify reorders based on specific products’ performance.
Leveraging sell-through data lets you anticipate restocking needs before stock-outs, minimizing lost sales and keeping shelves stocked with customer favorites. Remember, stock-out data alone doesn’t tell the whole story. Pair shelf availability metrics with sell-through data to get the most precise picture and justify the re-order.
3. Assortment Encore: No More Off-Key Selections
Beyond broad regional trends: Use sales velocity data to identify rising stars within specific product categories. Look for brands or products experiencing sales growth, indicating surging popularity. Curate a winning product mix with minimal dead stock, maximizing floor space for guaranteed bestsellers. Don’t rely solely on established bestsellers. Use the data to discover hidden gems – lesser-known brands or products experiencing sudden popularity in specific demographics or neighborhoods. These unexpected hits can refresh your product mix and attract new customers.
Retailers and brands are best served by leveraging both share of shelf and share of sales insights specific to their local customer bases to adjust their regional distribution strategies and ensure production is focused on high-demand items for those specific markets (Product Image: CannMenus).
Bonus Tip: Collaborate With Your Brand or Retail Partners
Share your insights with partners to inform their production schedules and ensure a steady supply of hot-selling items. This fosters a proactive approach and helps prevent stock-outs for trending products.
Make More Data-Driven Decisions
Your data strategy doesn’t have to be a solo act; instead, it can act as the conductor – bringing brands and retailers together in perfect unison.