If you own and operate a dispensary in any part of the country, you’re constantly looking for ways to increase revenue without increasing your overhead. This is one of the big goals for any business buying and selling bulk terpenes. You’re not alone in this endeavor. Thousands of businesses across the country are using the cross-sell and the up-sell to help their customers and make a little extra per transaction.
But here’s the secret: you need to give the customer what they want, even if they do not know they want it. This process is an art and a science. In this article, True Terpenes will give you some actionable advice on how to help your customers spend more without taking advantage of them.
The Statistics Supporting Selling To Existing Customers
Trust is the name of the game. Your existing customers trust you; it’s why they continue to buy product from you. It’s much easier to increase revenue through your existing customers than it is gaining new customers.
Did you know that selling to an existing customer has a 60-70 percent success rate compared to a new customer sale at five to 20 percent?
What most businesses, including dispensaries, tend to miss is that about 20 percent of their current customer base is going to provide them with around 80 percent of their overall revenue. This may seem like an astronomical ratio, however, it has been proven time and time again with thousands of businesses. The takeaway is that you need to start focusing on how you can help your existing customers discover more of your products than attempting to acquire new customers.
The Two Techniques To Increase Revenue
There are two techniques you must implement in your sales process as a dispensary to increase revenue. The first is the cross-sell. The second is an up-sell.
The cross-sell involves requesting that the customer consider another item at the register or from the salesperson that is of equal or lesser value to the item they’re buying. Essentially, this is a different item that is not directly related to the item the customer is currently desiring to purchase.
A lot of retail stores do this with candy, gum, and other trinkets along register aisles. They offer more products unrelated to what you’re buying to hopefully increase their revenue due to you having to wait in line.
On top of that, salespeople at registers can ask if the customer would like to purchase any of the items they see on the counter or in the aisle at a “discount,” which is another cross-sell technique.
A great up-sell steers your customers toward more expensive products that directly relate to their current purchase. For example, a customer that purchases a terpene isolate can be offered a three-for-one terpene isolate deal. The “deal” is directly related to their purchase, but it is more expensive. The salesperson can also offer a customer a mixing kit for their terpene isolate, which costs more than the isolate itself, but it will advance the customer’s journey toward mixing isolates or creating concentrates.
The Art Of Increasing Revenue
It’s not secret that customers want to buy something from you. In fact, most of them buy from your dispensary out of habit. They enjoy the product they get from you each time, and they are what businesses call loyal to your brand.
The art of increasing revenue begins with knowing what your customer wants. For example, a customer who tends to purchase terpene strains and isolates that help them relax, they’re most likely stressed, overwhelmed, or anxious. This is only an assumption, but you can ask your customers a few questions to understand them better than by their purchase history:
- What do you think/feel about the terpenes you’ve been purchasing lately?
- How do you like what you’ve purchased?
- Which would you recommend to a friend?
- Why do you prefer this brand/effect over the others?
The goal here is to better understand the why behind the customer’s purchase. This way, you can cross- and up-sell them what they need next before they know they need it. When you start with the customer and reverse engineer their why for purchasing, you don’t have to salesy or sleazy with your products. You can be genuine and authentic.
How To Keep Your Dispensary Stocked
One of the easiest ways is to purchase bulk terpenes to keep your shop stocked. As customers purchase terpenes from you, you can begin to stock the more popular terpenes and less of the terpenes people are avoiding. This isn’t to say the terpenes are low-quality; it’s a testament to the age-old adage that the market will tell you what it wants — all you have to do is listen.
True Terpenes: Your National Supplier Of Bulk Terpenes
When you choose True Terpenes, you get wholesale terpenes in bulk that are certified natural, organic, non-GMO, and food-grade. Not only do we care about your dispensary, but we care about the products you offer your customers. Shop our wholesale and bulk terpenes for sale now!