Wholesale Purchasing Decisions:
From Basic Purchasing to Results-Driven
Year-over-year growth of medical cannabis patients and adult consumers has made the industry a sellers’ market from a wholesale perspective. Meaning, most dispensaries have struggled to keep their shelves stocked with products so they have been forced to purchase any product that passes initial standards and qualifications in order to have products available for customers and continue to make revenue. Oregon might be the exception, where there is so much supply that it has become a buyers market and the dispensaries can benefit from being selective.
This has been a luxury for growers and processors because as long as they avoid using heavy metals and dangerous chemicals when cultivating and producing their products, they are almost guaranteed to sell. For dispensaries it has been a mix of a blessing and a curse. For the most part as long as they had a product on the shelf it would likely sell. Some products move faster than others, but due to the demand, most products sell. The curse is that they have not always been able to get what their customers need or desire, or keep their menu consistent because they have been forced to buy what is available. Dispensaries also have had no way to purchase a product based on knowledge of how that product has performed for consumers.
How are things now changing? The industry has matured, consumers have become more educated, and technology is more ingrained in the process. The competitive landscape has increased and consumers have higher standards and demand more transparency on product information. Now it becomes less of a “buy what you can” attitude, and leading dispensaries begin to make strategic and informed purchasing decisions based on their customer demographic and needs.
As each state market continues to mature, more growers, processors, and brands have more products available. The increase in supply on the wholesale level provides dispensaries with options as supply and demand become more even. Many forward-thinking dispensaries are now purchasing decisions based on:
1. What are my lower cost options?
2. What do the lab results say for this product?
3. How well did this product sell historically?
Dispensaries integrated with us are making the most strategic and informed wholesale purchasing decisions by considering:
4. Which products are truly performing well for patients and customers?
5. What outcomes are my patients specifically looking for?
6. Which cannabis varieties & products are selling & performing well for patients and customers like mine?
To help illustrate the steps toward being a top quality, results-driven dispensary, see Releaf’s Hierarchy of Dispensary Wholesale Purchasing chart below.
How can you start marking strategic data-driven purchasing decisions too?
1. Collect current product sales and transaction data & trends
2. Request lab results for all purchasing considerations
3. Identify what your patients are looking to treat and the outcomes they desire
4. Collect outcome data from your patients to monitor their results with specific products
5. Collect reported consumer and product outcome data across your state
Combining these data sets now allows dispensaries to make the most informed purchasing decisions based on the best current products in the market for their customers’ needs.
In addition to making the most informed purchasing decisions, your staff will now be informed to properly and effectively market the product to your customers. Informing their purchasing decisions and improving their experience.
Of course, no two products and no two people are exactly alike, but now the inconsistency in recurring products becomes more manageable because you can identify why individuals liked the previous product, and which available products on the market are reported to provide the same relief and/or experience. See the below two images for examples of two products and what patients reported those to be effective for. This allows dispensaries to continue to match their patients need, turning them into a happy, informed, and loyal customers.
Captains Cake by Curio Wellness – Maryland
Bubba Kush by Curio Wellness – Maryland
As dispensary owners, managers, or employees you can access post transaction outcome data from products available across your state on Releaf’s Garden Platform with our State Product Search tool. Instantly leverage and learn from what thousands of individuals in your state are reporting on products in the state, and which are being reported as most effective for specific symptom relief. With this you can immediately make more informed purchasing decisions and not rely on biased marketing materials from the brands selling the product, or over-generalized strain details from a Google or Leafly search. Get real-time, localized insight on what individuals in your market are actually experiencing and reporting.
Above is a snapshot at the State Data View our dispensary partners have access to on their platform. To see the full State Data View and all the reporting and insights it provides, schedule some time to meet with us.
No brands, companies, or products listed above paid for placement, nor are they endorsed by Releaf App. All are mentioned based on data & results from Maryland patients.