You know your customers, your competition and your market – but sometimes, despite your best efforts, certain products end up sitting on your shelves. If you’re tired of waiting to free up that space, try these three pricing strategies for moving cannabis products that aren’t selling.
NOTE: Check your state’s laws to ensure you are complying with all pricing regulations. For example, state regulations in Oregon prohibit marijuana retailers from giving away products, selling below cost, or offering a discount for purchasing more (buy 2, get 1 free).
1. Multiple Pricing
Multiple pricing refers to selling items in bundles, like pre-rolled joints and vape pen cartridges, at different prices for different quantities. For instance, your store may offer one pre-roll for $10 or three pre-rolls for $20.
With multiple pricing, you’re setting more than one price for the same product in an attempt to get customers to purchase more of that product. In other words, a customer choosing to spend $20 on three pre-rolls vs. $10 for one has already spent 2x more in your store than they might have originally.
This strategy also works well if you have product at risk of going stale. You can raise the price of a single gram and highlight the “better” price a customer gets if they purchase an eighth.
TIP: Further entice customers by “mixing and matching” the strains you offer (i.e., a discounted gram doesn’t have to be the same strain as the original gram).
2. Psychological Pricing
Psychological pricing is commonly employed by traditional retailers like clothing and hardware stores. These retailers use numbers like 5, 7, 8 and 9 to make consumers feel like they are paying significantly less, when in reality it may only be pennies less.
Take a look at the tags the next time you’re in a store. Which numbers are they using?
TIP: Studies have shown that people prefer the number 9. Consider using prices that end in 9 (e.g., 9.99, 10.99, etc.).
If your store is cash-only, psychological pricing can create more work for your budtenders. Your POS software should offer automated discounts, but if it doesn’t, consider creating “cheat sheets” with common base prices + tax already totaled to minimize potential headaches.
3. Anchor Pricing
Anchor pricing shows customers the regular retail price of a product vs. its sale or promotional price, so they see directly how much they’re saving on a deal.
Let’s say you have some vape pen cartridges gathering dust on your shelf. If the cartridges normally sell for $39.99, discount the price for a limited time while still displaying the original cost: selling the cartridges for $34.99 and displaying both prices shows the customer that they will save $5 if they buy now.
TIP: Adding time factors increase urgency in consumers. Use language like “This week only,” “While supplies last,” and “Now through the end of December,” when advertising your deals.
Make it easy for customers to see how much they’re going to save, and for how long they have the chance to save. You can also try combining these pricing strategies to further increase sales.
Do you have any tips or tricks for moving cannabis products when they just won’t sell on their own? Leave them in the comments.