After you’ve conducted an ABC analysis for your cannabis inventory, you’ll likely want to create a plan for how to handle your slow-moving C grade inventory and any B grade inventory that is at risk of becoming C grade inventory. Here are a few different strategies that can help you create a successful path towards being less burdened by C grade inventory, one of which will allow you to boost the sales of your B grade inventory. Not to mention, you’ll end up having more room to stock A grade inventory during your next Confident Cannabis Wholesale order!
The Difference Between B Grade and C Grade Inventory
You can learn more about the differences between A, B, and C grade inventory here, but let’s do a quick refresh on the differences between B and C grade.
B grade. This is your middle-of-the-road inventory that accounts for the 15% of your revenue and is just behind your A grade inventory (80% of your revenue). B grade inventory has the potential to rise up to being A grade inventory or can drop to C grade. It isn’t uncommon for the status of B grade stock to fluctuate.
C grade. While B grade products have a lot of potential to succeed, chances are you’ll want to start to step away from any stock you’ve determined is C grade. This is your worst performing inventory and only accounts for 5% of your revenue. Some cannabis dispensaries call this slow moving or dead stock. Generally, C grade inventory actually costs you more money to hold on to than it’s worth. C grade inventory takes up valuable shelf space without generating revenue for your store.
What to Do with C Grade Cannabis Inventory
While you’ll want to find ways to get the most out of your B grade inventory, deciding what to do with your C grade inventory should be your first priority. Before your next inventory planning session, take a look at how you can offload your C grade inventory and get more bang for your buck out of your B grade products.
1. Give C Grade Inventory a Bit of Love
Before saying goodbye to C grade inventory forever, it can be worthwhile to try to give it a little extra love and attention. If your C grade inventory doesn’t have strong visibility in your brick-and-mortar or online dispensary, the issue may stem from customers simply not being aware of those products. One possible way to overcome this is to make sure that customers come across C grade products while they’re shopping for A grade ones. This may involve shifting around your cannabis merchandising in store to make sure both levels of products are visible in the same area. Or, you may choose to switch up how you suggest complementary products to customers who are shopping in store or online.
Planning a marketing campaign around your less profitable inventory may also give it a chance to shine. It will be up to you to decide when to cut your losses, but it can be worthwhile to make sure C grade stock has the resources it needs to excel before sending it packing.
2. Run Strategic Promotions
If you decide you want to offload your C grade inventory as quickly as possible, you can discount those products or hold a special liquidation sale for just that specific cannabis inventory. While you generally want to increase your price on A grade stock, on the flip side, decreasing your price for C grade products can be a good option. To reward loyal customers, you can offer deep discounts on these products to only a select group of customers. Between the discount and their existing brand loyalty, they may be more likely to purchase these products. You can do this with B grade inventory as well if you think it has the potential to perform stronger than it currently is.
One promotion method that may work well for your dispensary is to bundle your dead stock products with better selling products like A grade or B grade inventory. This can be a great way to offload your C grade products, while giving a boost to better selling products. When paired with B grade products at a discount, you may find your B and C grade inventory sells better.
3. Consider Discontinuing Slow Moving Stock
At the end of the day, it may be time to simply discontinue your C grade inventory and to stop ordering it. The same goes for any B grade inventory that more often than not teeters towards C grade. Variety is all well and good, but removing slow moving stock can help free up valuable shelf space and make it easier to focus on promoting and selling the products that are really working for you.
Once you’ve stepped away from ordering inventory you know will move slowly, you’ll be free to stock up on the products that bring you the most value. To stock up the right way, shop Confident Cannabis Wholesale for free today!