You pay a wholesale cost for cannabis products and you set retail prices for customers to pay.
These two values help you understand profit margins. Pricing is simple, right?
But what happens when you have multiple locations or types of customers and want to set different prices for each profile? Things get complicated, fast.
Cannabis dispensaries usually resort to applying discounts to get to the “right” price or end up multiplying their product catalog because different products and prices need to be created for every customer type—medical cannabis vs. recreational cannabis, for example.
To help you overcome these common problems, Flowhub is excited to introduce the Price Management Matrix.
No, we’re not asking you to choose between the red pill or the blue pill. This new feature allows cannabis retailers to set up granular pricing for different location groups and customer types. Instead of using spreadsheets or manual price intervention strategies, Flowhub now lets you automate price management for enterprise-wide transparency and consistent pricing across all dispensary locations.
This 3-part video series walks you through how to get set up step-by-step:
Why use the Price Management Matrix?
Flowhub’s new Price Management Matrix helps cannabis dispensaries:
- Control pricing management at an enterprise level with restrictive permission access. Customize pricing tiers by product, location, and customer segments and ensure pricing adheres to brand pricing guidelines. Set it up once from a central location at a corporate level and instantly inherit pricing across dispensaries.
- Standardize pricing as you expand locations. Opening a new store is a lot of work, but having your Price Management Matrix already set up makes it one step easier. You can simply add new stores to your existing pricing tiers and Flowhub will automatically configure pricing for your new locations.
- Reduce complexity at time of sale for budtenders. Ad hoc discounts are no longer required to get to the “right price”, for example, if medical prices are lower than recreational prices in rural locations, but higher than both medical or recreational prices at stores in the city. As soon as the customer is checked in, Flowhub correlates that customer to the proper pricing tier so when they check out, the right price displays in the cart automatically. Your employees won’t have to worry about doing manual calculations since pricing is managed at a corporate level. Instead, budtenders can focus on doing what they do best: providing a great customer experience.
- Simplify discounts and specials towards timely marketing campaigns and promotional events, like happy hours or 420 sales, rather than evergreen pricing for customer types, like employees or seniors. A senior citizen will always qualify for a senior citizen price so it makes sense to give these customer types a dedicated price instead of a discount, making for cleaner data and less room for human error.
- Proactively manage profit margins across products, customer types, and location groups. Analyze your sales performance and track every price change and discount. With significantly fewer discounts applied, the Price Management Matrix simplifies end of month accounting and discount tracking
Who is this for?
Flowhub’s Price Management Matrix is most beneficial for enterprise cannabis dispensaries who want to dictate different prices for the same product across multiple locations and different customer types. This feature may be used by single locations as well if there is a need to dedicate specific prices for many customer segments.
For example, let’s say you sell the same product to medical and recreational customers, but your medical prices and costs are lower and vary by location. If you are currently using discounts or specials to calculate these different prices, then the Price Management Matrix is a great solution.
Unsure if the Price Management Matrix is right for you? Consider these questions to see if this feature is a good fit for your dispensary. To enable these features, please give our product support team a call at (844) FLOWHUB or (844) 356-9482
How it works in Flowhub
There are three new features in Company Management that allow you to create your Price Management Matrix.
In order to use these features, you need Company Management, Group Locations, and Bulk Edit Product permissions.
1. Set up Location Groups
Location Groups is a new feature tied to the Price Management Matrix. It allows you to group similar locations together. Location Groups are flexible based on your own internal structure. For example, you can group by different regions like East, West, North, and South, by accessibility like Rural vs Urban, or however you like.
In this screenshot, you’ll see we’ve added a Location Group called “Mountains” with two locations: Flowhub Aspen and Flowhub Evergreen.
Watch this video to learn how to create new Location Groups in Company Management:
2. Create your Price/Cost Blueprint
Once your Location Groups are set up, you’ll create a Price/Cost Blueprint. This new feature allows you to generate a template that dictates price for different customer types in each location group which will be applied to your Price Management Matrix.
Your Price/Cost Blueprint helps identify pre-existing customer types (e.g. med, rec, med primary) and customer groups (e.g. locals, veterans, employees, senior citizens) that will receive different prices or costs across Location Groups.
You can make your Price/Cost Blueprint with as many combinations as you need. However, do note that the more you include, the more complexity you are adding to pricing. We recommend simplifying as much as possible.
Watch this video to learn how to set up your Price/Cost Blueprint in Company Management:
3. Build your Price/Cost Matrix
Once you’ve created your Price/Cost Blueprint, it’s time to enter “The Matrix.” This is where you’ll be able to input granular price and cost information based on the blueprint you created.
Before you get started, consider the products that you’d like to add to your Price/Cost Matrix. You might have different products in your inventory but want to apply the same Price/Cost Matrix to all of them, like various flavors of gummies or shirt sizes and colors.
To help identify each product or group of products to be used in the same matrix, filter by a category and sort by price. Use our “Bulk Edit” feature if necessary to flag similar products.
When you are ready, this video will show you how to create matrices and assign them to products step-by-step:
For more details on implementing the Price Management Matrix at your cannabis dispensary, visit our Help Hub. To enable these new features, call us at (844) FLOWHUB or email email@example.com to set up a time with our Support Team.
If you’re interested in learning more about how Flowhub can help your dispensary grow revenue and stay compliant, please request a demo here.
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