Pod of Flowers: Maximizing Cannabis Dispensary Profitability Through Accessories: Insights from Kyle Britton, Turning Point BrandsNov 01, 2023
Join us on Pod of Flowers as we explore the profit potential of cannabis accessories with Kyle Britton, Head of Marketing at Turning Point Brands.
Kyle made an important point that is often ignored in the cannabis business: although there is a cap on profit margins for flower products, this restriction does not apply to accessories. This presents a valuable chance for dispensaries to increase their profitability. Accessories such as lighters, rolling papers, and bongs are not only high-profit items, but they are also essential products that consumers regularly seek.
Dispensaries should acknowledge the potential of accessories. According to Kyle, accessories may only contribute to 1-5% of a dispensary's business, but they provide the opportunity for a significantly higher profit margin. He stressed the importance of keeping a stock of essential accessories, using lighters as an example. Running out of lighters is not just about inventory; it signifies a missed opportunity to increase basket sizes.
In this episode, we also discuss the difference between high-end accessories and affordable products and how it can impact product turnover and retail profitability. We explore how understanding your consumer base can enhance the shopping experience and increase profits. Additionally, we examine how a well-curated range of accessory products can create opportunities for upselling and cross-selling, using real-world examples for practical learning.
Connect with Krista: https://www.linkedin.com/in/krista-raymer/
Connect with Jay: https://www.linkedin.com/in/jaymrosenthal/
Connect with Kyle: https://www.linkedin.com/in/kylebritton/
Learn more abut Turning Point Brands: https://turningpointbrands.ca/
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