Using Data to Evaluate Your Product’s Performance Can Boost Your Profits by 30% or More, here’s how:
Looking at your flower sales without using data is a little like looking down at the farmlands in the midwest while you fly over. You can clearly see that there are crops down there, you can make out shapes, but you have no idea what they are or what their state of health is. Data, on the other hand, puts you on the ground…affording you a granular look into what is going on in your business so you can tell the wheat from the corn. And being that your flower category is the most susceptible to theft, diversion, labor waste, and varying degrees of profit margin, having strong, actionable data becomes even more important in this facet of your business. So, let’s look at three ways you can use data to curb theft, increase productivity, and boost profits with your flower.
1. Curb Theft with Checks and Balances
Asides from camera systems and other security safeguards, the best way to fight theft at your dispensary is with ‘enforced accountability.’ Implement a system of clear chain of custody between the purchasing department and your retail sales staff to ensure that all of your procured product inventory is sold and accounted for.
Several case studies demonstrate that benefits of implementing and enforcing a system of clear chain of custody across all your employees, including managers and techs. Do you know how much of your bulk flower ends up as crumb or shake, loosely unaccounted for in someone’s pockets? Minimize theft and reduce diversion levels to as little as .01% and save thousands of dollars per month with chain of custody tracking.
2. Increase Productivity
Are you upholding your employees to a 2 grams per pound weight loss discrepancy during bulk flower breakdowns? Are you monitoring pound breakdown times? Are you consistently getting 95%+ packaged product from every pound? Are you aggregating the numbers from every bulk flower breakdown to have meaningful conversations with employees to increase their productivity and cut your labor costs, simultaneously?
These are just some of the questions your management team should reflect on as you begin instilling a culture of accountability. Accumulate performance metrics such as loss % per breakdown, time spent per breakdown, and purchasing margins etc. and use these data points to reward (or discipline) your staff accordingly.
3. Gain Leverage with Your Vendors
If you don’t know what percentage of “A” Grade product you are packaging out of each pound of your flower, you’re forfeiting a major opportunity to use data as leverage during vendor negotiations. Knowing the percentages of shake, crumbs, stems, and mold gives you the upper hand when negotiating pricing while holding your vendors accountable for quality.
For instance, if you have data that verifies whether or not a given vendor is consistently delivering a high percentage (95% or more) of sellable “A” grade product, you can leverage it to negotiate lower prices and force your underperforming vendors to supply you with their top tier flower.
Use the Software that was Purpose Built for Maximizing Cannabis Profits
While there is no single “magic bullet” to help you maximize your flower profits, combining the right workflows with the right software can help you avoid leaving money on the table. At Treez, we’ve helped dozens of dispensaries run a more efficient and profitable operation with proactively managed vendor and employee performance expectations with clear cut metrics baked right into our software.