How To Move Excess Inventory
Inventory management practices at your cannabusiness must be airtight to comply with state requirements, build trust within your staff, and to be sure you’re not taking a loss on product. Staying proactive when it comes to managing your inventory via properly training your staff, utilizing the right POS systems, and incorporating some age-old retail techniques are all ways to safeguard your store from empty shelves.
The following are some tips to assist if you routinely find yourself with excess inventory.
Establish Par Levels
Your inventory will be more easily managed if you have par levels in place. Par levels are any amount of a product that you must have on hand during a specific period. This is a simple safeguard to make sure you don't find yourself sold out of an item that needs to be available all the time. For example, you find you should have a par level of X number of vaporizers for sale at any given time. When your vaporizer inventory drops below that level, you will know it is then time to place your order for more.
Try Not To Overbuy
Another important aspect of inventory management is trying not to overstock in the first place. Utilize your collected customer data to help with knowing what products are more sought after than others. Always be aware of the expiration date on all your products. You don’t want to have to sell all your near or already expired product at discounted rates as that can result in serious financial loss.
Hold A Sale
A properly timed, appropriately planned, well-promoted sale can really help to clear your shelves of older and excess products. A flash sale can assist in unloading additional products, and customers will be more motivated to stop by if the sale is positioned as a one-time opportunity.
These sales are the perfect time to put your oldest inventory on full display with an appropriate price tag. If your business sells flower, you probably already know that your customers prefer fresh bud. Cannabis that has been sitting on your shelves for more than four months is going to have a tough time moving at full price.
Rearrange Your Inventory
If you are finding difficulty in moving particular products, the first thing to try is to move those products to a new location where they are undoubtedly more visible. Perhaps your customers just aren’t aware of those items because they weren't properly displayed. Ensure the product’s new home is in a much more prominent location and try creating signage that will further promote those items in your display. Adding bright and attractive branding and marketing can make a difference when it comes to moving a slow-selling item.
If you find you have more than enough of one product, try offering a special on purchases of multiple units. Offering five pre-rolls for $25 may be more appealing to your customer base than $5 per.
Additionally, consider bundling high-selling products with less popular items. If you find a particular edible sells very well, try selling it bundled with a slower-moving edible item.
Cannabis companies struggle with advertising their brands due to restrictions, so marketing requires a little extra creativity. Flyers, postcards, emails, and free swag can all go a long way in getting the word out about a new deal or promotion you’re offering at your location. Just be sure to stay apprised of your state’s advertising guidelines for marijuana companies so as not to break any rules.
Utilize Social Media
Make sure to post to your brand’s social media channels when trying to move excess inventory. Create flash sales and share to social media platforms. Consider creating a discount or promo code to be used by your loyal followers and regular customers.