Heavy discount season is upon us with 4/20 coming right around the corner, and we’ve just built a new dashboard that’ll help you stay on top of your discount and pricing strategy.
What is the Discounts Dashboard?
Discounts are an important player in modern cannabis, and they can be both helpful and harmful to your success. The purpose of this dashboard is to provide a sense of discounts and gross margin expected within each category. The insights from this dashboard will help you gain a better understanding of overall discounts for your customers and how you can expect it to hit your gross margin percentage.
Want a better idea of what you can actually do with the Dashboard?
Review the examples below as well as the list of questions you can answer with the Discounts Dashboard.
Are Hybrid and Indica flower promoted the same way throughout the year?
Which segment within Edibles is getting the greatest gross margin percentage?
If I want to enter into the tincture market, what kind of discount is the consumer used to seeing these products at?
How has the average price for vapor pens changed over time?
Example 1 - Analysis:
Situation: You help run strategy for a pre-roll brand. You don’t have Demand Planning insights nor any information about discounts for the overall pre-roll category. Recently, you've been getting asked about adjusting your discount for the 1 gram pre-rolls to 15% off, but you don't know how to justify that specific number.
Solution: To find the right answers you can start by diving into the Discounts Dashboard. Assure that the filters on top are set up to give you success; category = Pre-Roll and Slice Data By = Package Size. Scroll down to the bottom graph. You'll see that 1 gram pre-rolls are being discounted at 10.3%. In addition to just that question, at the top of the dashboard, you can easily see the average item price and gross margin % for the whole category. You may want to check and compare your average price and gross margin %. You can also review the specific pricing of the 1 gram segment by filtering it out above to make sure there isn’t a certain segment where you can limit the promotion to 15%.
Example 2 - Analysis:
Situation: You're a marketer for an edibles brand. You want to increase your chocolate promotions next year, but want to see when they usually get promoted in the market.
Solution: You can easily answer that by filtering category to edibles, slice data by to segment and segment to chocolate. From there scroll down to the graph titled, “Percent Discount by Filtered Selection” and choose the month that has the highest discount percentage. In addition to that, you can also dive further by updating the 'slice data by' filter to equal package size and look at the same graph as before to find a good sweet spot for your variety of package sizes of chocolate.