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In the world of cannabis retail, the significance of smoking accessories cannot be overstated. Rolling papers, pre-rolled cones, lighters, bongs, vapes and an array of other paraphernalia constitute the indispensable toolkit for cannabis consumers. Yet, amidst the bustling shelves in dispensaries, the potential for optimizing profitability through cannabis accessories often remains untapped. While the core cannabis products dominate total dispensary sales, it’s essential to recognize that smoking accessories can greatly boost profit margins and add additional revenue streams.
The Untapped Sales Potential of Smoking Accessories
Despite their intrinsic value, cannabis smoking accessories frequently play a supporting role in dispensaries. The spotlight tends to gravitate towards displays of cannabis flower and other THC products. However, this imbalance in attention reveals the considerable potential of accessory sales. Currently contributing a mere 1 percent to 5 percent to dispensary revenues, according to one industry expert, these high-margin, non-perishable items represent an overlooked profit opportunity. By implementing strategic marketing initiatives and pricing structures tailored to accessories, retailers stand to seize a significant financial opportunity, rather than leaving money on the table for neighboring smoke shops. On the contrary, dispensaries often mark up cannabis accessory products by a staggering 300%, while neighboring smoke shops do not, resulting in lost opportunities for smoke shops to capture.
Optimizing Shelf Space and Visibility in Cannabis Retail
To capitalize effectively on the potential of smoking accessories, retailers must optimize shelf space and the line of sight within their establishments. By curating unique and visually appealing displays, retailers can capture the attention of consumers amidst a sea of similarly designed shops. It’s crucial to exercise caution with displaying front and center, high-ticket items such as luxury bongs that look pretty but cost hundreds of dollars and don’t move the needle in terms of sales.
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Instead, regularly refresh inventory to prioritize top-selling items, new items, special-edition collaborations, and items that give back like DaySavers Cones for a Cause, which donates 10% of sales to LGBTQ+ and Veteran organizations. Retailers must also maintain an adequate stock level of essential items like lighters and a diverse selection of unique rolling papers, flavored glass and wood filter tips for pre-rolls, grinders, batteries and more. By curating a unique assortment of smoking accessories, customers will be drawn to your store and come back time and time again to pick up items they don’t normally see elsewhere.
Increase Retail Basket Size With Engaged Customers
In addition to optimizing the product assortment and displays, fostering a culture of customer engagement is key to maximizing sales. Empowering staff to upsell complementary items and inquire about additional needs can significantly enhance the average basket size. Whether it’s suggestive selling of pre-roll fillable cones, pre-roll papers, hemp wraps, lighters or filter tips, every opportunity to increase revenue should be seized. You can’t necessarily change the number of customers who visit your dispensary each week, but you can sell more to those customers by upselling them accessories. Increasing your average basket size is one of the core levers you can pull as a business owner.
Running a dispensary is tough, so it’s important to understand that the pathway to profitability in cannabis retail lies not only in the promotion of primary products but also in the strategic elevation of cannabis accessories. By recognizing the untapped potential of these high-margin items and implementing tailored marketing strategies, dispensaries can unlock new avenues for growth, stand out from their competition, and solidify their position in a competitive market landscape.
