Affid For tax season and price pressure, cannabis retailers are looking for new ways to boost their bottom lines.
The secret solution? Small-ticket items and programs are neatly restored, according to Mike Martin, vice president of sales at Denver-based gear wholesaler Luvbuds.
Oversaturation and oversupply have sales prices down less than 32% from 2021, while those who work there are facing high regulatory costs, federal tax burdens.
Enter “The Triad” – The collaboration between the analysis data platform Hoodie, the B2B software provider Sparkplug, and the sales force of luvbuds has been created in a simple place: Sell more of small things.
In a recent interview with MjbizdailyMartin explained how the partnership creates real-time data for sales inventory through virtual training and incentive-based employee training.
It all adds up to the bottom line where cannabis accessories can help get the bottom line.
Cannabis dealers are leaving money on the table
Unlike retailers in other sectors, cannabis shop operators have high fixed costs.
For many, the only viable way to survive is finding new money within the four walls of the store – small wins that add up over time.
That’s a gap Martin believes accessories can fill as Turn Section is looking at a reliable source of additional revenue.
According to the margin, accessories account for only 1% to 3% of dispensary sales. That’s less than their share of normal sales, where the propensity to buy reliably raises margins.
Martin Jokingly calls it “The 4:45 Strategy” – the time before closing when traders remember that they should check their noses.
The missed opportunity isn’t the low shelf price; It’s about visibility.
Each simple snack or packet of paper is a small, easy dollar left on the table, he said.
This is where the triad comes in.
How Cannabis Sellers Can Increase Their Margins
Instead of leaving the market to corner stores or smoke shops, Martin believes that cannabis stores should work as one-stop shops, offering accessories such as “fries and hamburger.”
Every smaller basket size for Bloos, adds convenience, and keeps customers from spending those dollars elsewhere, he said.
That mindset drives the collaboration of the Triad, built on the three foundations of sales: supply chains, sales and employee engagement.
The model optimizes systems without adding complexity, offering a low-risk, returnable approach.
- The first leg is the provision of supply chains, managed by Luvbuds and Hoodie, ensuring that the right Skus is always in stock and filled automatically.
- The second highlight is the visuals, which are engaging “The Smontu store in the box “Show: A purchase arrangement near the outlet that makes the accessories visible and easy to hold.
- The third, powered by Sparkplug, emphasizes budtender education and incentives.
Employees can earn an extra $1 to $2 an hour by meeting weekly sales goals, and incentives are sponsored by LuvBuds, not the retailer, to keep store margins strong.
Instead of chasing new customers, TriadID helps retailers maximize value from existing ones.
Triad can increase sales by 4%, like the Denver Pilot program
The Triad model is already underway with a pilot program established in 50 Denver-area locations.
Early feedback shows it’s easy to use and works well with existing systems, Martin claims.
Participating stores can increase accessory sales from 2% to 4% of total sales in three to six months, in fact the income from this category, he said.
Pilot’s short-term focus is on sub-$30 high-volume handheld devices, with high-end accessories reserved for later stages once employee training and sell-through take root.
Over time, Martin intends to build on these results and expand the program nationally to all MSOs, both MSOs and independent stores.
If the pilot is successful, Triad can redefine distributors and technology partners as partners in Dispensary operations and profits.
Results of the Pilot Triad To program by Mjbizcon
As the disatiseries headlines another MJBIZCON season focused on innovation and resilience, Triad serves as a reminder that sometimes Innovation means getting back to basics.
At this year’s conference, that back-to-basics approach is likely to spark large-scale discussions about how businesses can drive profits by simply making new software.
At that time the participants arrived in Las Vegas Dec. 2 – 5 through MJBizcon, the pilot’s first data will serve as a case study of the worst case, the effectiveness of which has the greatest impact,” he said.
For Martin, the takeaway is practical, not philosophical.
“If it is available for sale, it will be bought,” he said. “If you can double your accessories business, it’s well worth it in 15 minutes out of your day.”
