Sell-In & Sell-Out Reporting
Cannabis continues to present fertile ground for emerging and enterprising brands and retailers. In 2022, more than 3,000 brands were on the shelves of 10,000 cannabis dispensaries across the U.S., and new brands are launching every day as 2023 surges on.
Empowering You with Data for Better Decision Making
With this growth, it’s essential for both brands and retailers to know, study and understand the industry’s consumers — their habits, preferences, and values — and how they interact with various brands and products. But this data is often unavailable, fragmented or expensive to obtain.
Like any other industry, understanding your target audience and buying patterns is paramount to a business’s bottom line and long-term success.
Imagine how the sector would grow if operators could use real-time sales data to inform decisions such as inventory management, new product launches, and retail promotions.
First-to-Market Retail Sell-In and Sell-Out Report
Lucid Green is making this dream a reality with its first-to-market Retail Sales Report that seamlessly integrates both sell-in and sell-out data.
The new transformative reporting tool expertly combines real-time awareness into a product's journey once it gets to a retailer (sell-in) and its end-user retail market performance (sell-out). The latter is something totally new to the cannabis industry or any industry for what that matter, which makes it that much more exciting! It’s not an exaggeration to say this is a revolution in the sales to market reporting modality.
When you consistently use LucidIDs and CaseIDs for item-level and case-level tracking, you can turn your static operation into a dynamic, data-backed enterprise that is not just keeping up with the burgeoning industry but is shaping the retail landscape as we know it.
Sell-Out Data is the Key
Sell-out data delivers an unmatched understanding of the trajectory of each unit or case, spanning stores, regions and retailers. This vantage point reveals intricate patterns and nascent trends and allows for the recalibration of distribution and marketing tactics. Through this analysis, our partners are well poised to identify new opportunities and adapt strategies to align with evolving market dynamics.
The real bread and butter of the sell-out data is understanding your top-performing products and those that are lagging, which warrants an immediate focus. Overstocking is a major issue in this industry. Retailers may have inventory of a particular SKU that will last seven months or two years, creating another set of issues around product safety.
Acting on your sell-out data can end your internal operational challenges and industry-wide pitfalls.
Sales Forecasting is No Longer a Guestimation
Gone are the days of manipulating data or tying to piecemeal sale reports for internal teams, C-suite and investors. Brands can now access real-time inventory records when they factor in inventory against the rate of sale for a specific retailer location.
Retailers are typically either in overstock or understock which tells the manufacturing team exactly where and how they need to react. Here’s a simple explanation for how this works: If a brand sends 100 products to a retailer and they sell 10 a day, you know you’ll sell out in 10 days, and it's time to get more products in their hands
Our item-level scanning and real-time sell-out data take the guesswork out of sales forecasting and inventory management once and for all.
Optimizing for Cannabis Holidays
While the Retail Sales Reports are proprietary to each retailer and brand, we’re also able to pull macro trends. Some of our initial data underscores that cannabis sales and consumption reach their zenith during holidays like 4/20, 7/10, 2/1 and 10/5.
These dates, already earmarked by many for incentivized promotions, induce a sales spike no doubt, given the price-sensitive nature of the cannabis category. Brands and retailers can now work together in conjunction with the sell-out data to accurately plan inventory for these cannabis holidays.
The Next Wave: Product Aging
This initial Retail Sales Report launch is just a preview of what's possible. As we continue to augment and refine our tech capabilities, we want to hear from you about what else you’d like to see in our evolving tech stack.
In the meantime, we’re already at work developing the next wave of tech upgrades. The first item on the agenda is product aging.
Inventory aging describes stocks that barely move. In theory, the ideal inventory age can be a week or a month from the supplier's delivery date. Conversely, most companies consider items that sit for more than six months or 180 days to be dead stocks.
Understanding a product’s age will help your company stop reordering the same products that don’t sell — and instead, develop an approach for eliminating all your dead stock.
You may see that products with certain terpenes are aging best so you can tailor your portfolio and/or R&D pipeline based on this You can also tailor your marketing to consumers that want products with that terpene profile with the goal to move the products even quicker.
Give it a Test Drive
Lucid Green's Retail Sales Report is the industry’s compass, guiding operators toward data-driven decisions. For a deeper dive into how it works, please contact a dedicated Lucid Green representative here.