Pricing Compression: The Importance of Menu PresentationMar 28, 2022
In our Price Compression Series, we're taking a look at the importance of menu presentation. Almost every cannabis retailer we walk into now has at least one digital menu board, if not multiple. This typically signals a more premium experience, but it allows your menu to be projected in an agile, straightforward way. Hypothetically, it should make it easier to read and, therefore, easier to order.
But what most don’t realize, this in-store tool is one of the most critical levers we have to combat pricing compression. When done right, your menu can captivate customers and:
- Boost product awareness
- Highlight promotions
- Subtly persuade high-margin products
- Amplify cross-selling and upselling opportunities
Most digital menus integrate with the cannabis industry’s key POS providers making it a “cinch” to get your menus rolling in no time.
When customers expect an omnichannel presence from your brand, these tech providers offer a real advantage with live menus that are 100% automated so that your inventory is reflected on-screen in “almost” real-time.
The problem? This takes strategy. Too often, menu boards present too many skus and unclear information all at once. This results in customer decision paralysis and causes the customer to rely on price to make the decision.
You’ve spent a hell of a lot of time putting together a carefully curated product assortment. So make sure you are getting the most out of menu displays!
- Avoid Decision Paralysis - Less is more. List only the top 5-10 in each category, noting that the first few items on the menu will always sell more; list highest profit to lowest (not price). For those with more than one store, this will have to be considered on a store-by-store basis as product performance is vastly different in various geographies.
- Use Promotional Templates - By ‘Boxing’ or creating negative space around key products, you give them added focus. That can support these products' velocity and make them memorable for the customer and budtender. This is a great area to feature products with more benefits than low prices.
- Analyze Where You Are Showing Up In Menus Now - Can you recommend a change that could support the retailers sell through? Think about how naming conventions could impact menu presentation.
- Create Digitally Enticing Images, Animations and Videos - Remember your audience, not only the customer in the hopes of sparking a question about your brand to the budtender, but to the budtender themselves. A quick 10-second video that exudes your brand essence and story and brief product highlights will entice budtenders to learn more about your account and your products.
- Package Up Key Product Messages - Think of producing digital assets that highlight best-selling and high-margin items outside of product launches. Retailers will find it hard to argue with those bottom-line drivers and your templates will help draw attention to menu items helping you reach those last-minute stretch goals.
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