5 Tips for Dispensary Inventory Management
Published on 9/10/22
There are many things to consider when running a dispensary, from the products you stock and how you market them to the customer service you provide.
One of the most critical aspects of managing a dispensary is inventory management. Without enough product on hand, you lose sales. But if you're stuck with too much product, you risk wasting money.
Read on for five inventory management tips to help you make critical decisions about your dispensary stock.
Why Inventory Management Is Important
There are a few key reasons why dispensary inventory management is so essential for dispensaries:
- To maintain compliance with state regulations. For example, in many states, dispensaries and cannabis businesses are required to track their inventory from seed to sale.
- To avoid product shortages. When customers come into your dispensary looking for a specific product, and you don't have it in stock, they'll likely go to a competitor.
- To prevent product waste. If you have products nearing their expiration date, move them off your shelves before they go bad.
What To Consider When Managing Your Dispensary Inventory
If you don't already use a dispensary inventory checklist, now's the time to start. This will help you track what products you have in stock, how much of each product you have, and when you need to reorder.
In addition to using a checklist, there are a few other factors to consider when managing your inventory:
- Product demand: What products are your customers asking for? Make sure you stock enough of these in-demand products.
- Product margins: What products are selling well and have a high margin? These are the products you want to focus on stocking.
- Turnover rate: How quickly are your products selling? If you notice that a particular product just isn't selling, you may want to consider discontinuing it.
Dispensary Inventory Management Tips
There are countless things to keep in mind regarding inventory management, but here are five tips for stocking and optimizing inventory for your dispensary.
1. Use Your Analytics
Your POS (Point of Sale) system is a valuable resource that can tell you a lot about your customers and what they buy. Review your sales data regularly to see which products are selling well and which aren't.
Third-party platforms like Headset can also provide valuable insights into customer trends. This data can help you select which products to stock and how to market them.
While it's important to know which products are selling, be aware of customer trends. For example, if you notice customers are buying more edibles than they were a year ago, it may be worth stocking more (or a variety) of these products.
2. Partner with Brands to Push Your Products
Let your customers know you have them in stock to move products off your shelves. You can do this by partnering with the brands you carry.
Many brands will provide marketing material you can use to promote their products. For example, they may provide posters or table tents that you can display inside your dispensary. Brands may also offer merchandise you can give to customers.
In addition to providing marketing material, brands can help you plan in-store events, which are a great way to promote new products and drive sales.
By helping you create hype for new products, brands can play a significant role in the success of your dispensary.
3. Know the Trends
To make informed decisions about inventory, stay up-to-date on industry trends. This includes knowing which products are popular and what the top-selling brands are.
For example, concentrates (including shatter, wax, live resin, etc.) have become popular in the global market. Don't miss out on the opportunity to take advantage of what consumers demand.
A few ways to stay up-to-date on industry trends include reading dispensary trade publications, attending industry events, and talking to other dispensary owners and managers. You'll be able to make informed decisions about how to stock your dispensary and which items to include in your dispensary inventory checklist.
4. Create Excitement
While it's important to stock hot-ticket products, you also need to create excitement for new products through marketing and in-store events.
Let your customers know about the new products you have in stock. One easy yet fruitful way to do this is by distributing an e-newsletter to your customer list. Before you do that, check that your email marketing platform is cannabis-friendly.
Another way to promote new products is through social media. Use hashtags, and post photos and videos of the products. By creating excitement and being entertaining, you'll be on your way to increasing sales and turning over your inventory faster.
5. Listen to Your Customers
To make informed decisions about managing your inventory, listen to your customers. They can provide valuable insights into what products they enjoy and how often they buy them.
Find ways to engage with your customers, including sending out short surveys, talking to them in-store, and engaging with them on social media.
Many customers will know which products they want you to have in stock. By listening to them, you'll be able to gather data and make decisions that are in the best interest of the business.
Are You Maximizing Your Sales Potential?
Dispensary inventory management requires careful planning and execution. By following the five tips in this article, you can help your dispensary run more smoothly while making changes to maximize your sales potential.
Create a product inventory niche that customers will love. Don't just stock your shelves with every brand that pitches you their products.
Use analytics, stay up-to-date on industry trends, work with brands to promote their products, create excitement around new products, and engage with customers.
What tips do you have for inventory management? Let us know in the comments below!