How to Build Bigger Cannabis Baskets With Volume Pricing in Your Dispensary
We've all been there: the snack section at the grocery store. You started walking down the aisle, in a snacky mood, expecting to get one bag of chips for $3.27. But wait! You can get 3 bags of chips for $9… you’d be saving almost 30 cents per bag of chips. Suddenly that singular bag of chips, which is all you intended on getting for your evening snack, seems not enough. This is an example of Volume Pricing merchandising.
She could be buying more because of Volume Pricing, but also could be buying more because she has the munchies 😜
Volume Pricing in the Cannabis Retail Business
Volume pricing is beneficial to both parties, the seller and the buyer. In the cannabis retail business, volume pricing enables the consumer to fill up their baskets higher at a lower cost, and it allows cannabis retailers to reduce the cost of holding inventory by selling off a larger quantity of cannabis. This method is successful on Print, Digital and Web menus.
Since the goal of a retailer is to sell, you’d want your customers to come in early and often, and you want them to leave satisfied. This can be done with volume pricing.
Buy More Save More!
If you’re a Canadian cannabis retailer, you’re probably staring at that image thinking, “Is this even legal?” The answer is no, volume pricing merchandising strategies are frowned upon by Canadian cannabis regulators. As we know rules and regulations differ from province to province and they also differ from country to country. Volume pricing merchandising is legal in the United States. With that being said, we also know that regulations and rules are always changing. If you’re a Canadian cannabis retailer you may want to shelf the volume pricing merchandising strategy for a later time.
“What’s the most bud I can get for my buck” 🌿💰
This photo was taken at Farmer Jane Cannabis Co.
4 Reasons to use Volume Pricing in your Cannabis Dispensary
As the saying goes, “the more, the merrier”. The more cannabis you sell, and the more cannabis your customers buy, the merrier everyone will feel. Everybody wins! Here are 4 reasons why you should consider using Volume Pricing in your cannabis store.
Simply put, offering volume pricing motivates customers to purchase higher quantities so they can earn discounts. This can help move out old inventory or minimize shipping costs. The more cannabis product you’re moving through your store, the better.
Differentiating from competition
By offering larger quantities for a discounted price, your store can differentiate from your competition. Consumers will want to shop at your store to get a better deal.
Purchasing decision shortcut
The single goal of an effective and engaging buying process is to make it as easy as possible for customers to buy the cannabis products they need. Your customers use price to easily evaluate and compare different products you offer with a volume pricing discount.
Combating the Law of Diminishing Marginal Utility
The law of diminishing marginal utility states that the more someone consumes something within a specific time frame, the less value they will place on that product. For example, when you open up a candy bag, the first few candies are sensational. That first, oh-so-sweet, sugary taste really sparks up your tastebuds and gets your mouth watering. As you work your way to the bottom of the candy bag or rip open a second bag, that candy starts to lose its appeal. As a cannabis dispensary, you can combat that diminished perceived value by offering volume pricing, showing consumers are savings for buying more.
Get more, save more
Use Volume Pricing to Connect your Brand Story with your Customer’s Needs
Is you’re cannabis store known for offering low pricing and amazing deals? Are your customers price-conscious and seek to find the most bud for their buck? If this sounds like your brand, both you and your customers would benefit from featuring value pricing on your menus! Value pricing is a fantastic way to connect and align your brand story, customers’ needs, and merchandising practices all into one. Volume pricing isn’t a necessarily display option for all menus, all cannabis categories, and all dispensaries but when you’re a value-driven brand and your customers crave deals, it just makes sense to utilize volume pricing wherever possible.
When you’re a value-driven brand and your customers crave cannabis deals
This photo was taken at Farmer Jane Cannabis Co.
How to set up volume pricing on your dispensary menu
BudSense offers menu flexibility not found anywhere else. With BudSense you have full control of your menus. You can try ideas, modify existing menus, and make new menus all from the dashboard.
This flexibility extends to volume pricing. With BudSense’s guidance, your menus will be tuned up in no time.
We hope this blog gets you excited and thinking about all the ways you can merchandise your store to sell more weed.
How do I learn more about BudSense?
Great Question! Book a demo today to learn more about how BudSense can enhance your cannabis dispensary!
