StashLogix is a Canopy alumni company (Spring 2015) and manufacturer of premium cannabis storage bags, designed to keep your goodies away from kids, pets, or no-boundaries roommates. CEO Skip Stone has learned a few things along the way, and is sharing his knowledge of merchandising accessories at retail, both for retailers and brands.
1. Stores that have quality merchandising and a positive atmosphere will thrive in the long run. Quality merchandising is neat and orderly, with product that is conspicuous to the customer. Items are generally placed at eye level and merchandised with other accessories in complementary categories. Consider the typical Apple store layout – bright, uncrowded and consistent from store to store. Compare that with a Marshall’s discount store, which tend to feature overflowing bins and racks, creating an overwhelming and disorganized feel. Visible open space creates a positive atmosphere, which is always enforced by friendly staff who greet customers as they walk in the door.
2. Consolidation will likely happen as the industry matures. Stores that offer a better customer experience have a better chance of survival. We’ve already seen this in cannabis, as chains such as Native Roots absorb independent shops. Consider the Starbucks Effect – people like familiarity at retail, both in store layout and the customer service experience. Consistency is key, and retailers will benefit from regular staff training and clear brand guidelines.
3. Good background music makes for a better shopping experience. Studies show that music at retail can increase spending if deployed correctly. Choose upbeat music played at a level that allows for easy conversation, and choose a genre that reflects your brand identity.
4. The waiting room is a great location to retail accessories, and many dispensaries are starting to figure that out. Others, unfortunately, are still concerned with theft. They forget that stores like Patagonia have thousands of dollars worth of products placed next to the door with no security guard and less surveillance than a typical dispensary. If you’re an accessories manufacturer, talk to shops about creating and placing a custom POP item that looks good, educates consumers, and helps products stand out while lending a professional look to the shop itself. Which leads us to #5...
5. Well-placed display racks can make good products great. What makes a well-placed rack? At the grocery store, you'll find candy, purse items and gift cards at checkout - smaller, price-point items that may not be on the shopping list, but always seem like a good idea to have on hand. Chocolate sauce and caramel toppings are found at the end of the ice cream aisle as you walk towards the register; use similar psychology in a dispensary. Placement near or around the register is always optimal, but a stand-alone display on an uncrowded floor is effective, too.
6. Customers won't connect with products locked away in glass cabinets. Consumers like to touch product, and studies show that a purchase is more likely if items are out in the open. It feels clinical if accessories are locked away – no one wants to feel like they're trying to buy cough medicine in rural Wyoming.
7. Accessories are not nearly as profitable as medicated products, so you'll need to work harder at pushing your product at retail. But purchase add-ons like accessories can raise the average sale considerably. Stores need to see the value of accessories from a customer standpoint as a convenient, well-rounded one-stop shop, as well as from a profit perspective.
8. Invest the time to train Budtenders - they are your sales team. Both stores and brands should invest in budtender training. Budtenders are busy, so how do you train them on your product? Ask management if you can come in for a 30-minute training with staff during their next all-hands meeting. Offer in-store demos as well as sales incentives to get your product into budtenders hands.
9. If the budtender loves using your product, then they will sell more of it. Create relationships with the budtenders in your shops. Carve out "flow" product into your marketing budget, and build an ambassador or pro deal program.
10. Many budtenders are like bartenders, they get to know their customers and make recommendations. Stay top-of-mind with your budtenders – check in with them and make personal visits. They are a great R&D resource; ask for their feedback on your product, which helps them stay engaged with your brand and will provide invaluable input to improve your product.
Remember, dispensaries are the heart of the cannabis industry - they are educating their customers, who are ultimately your customers.