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Upselling to the Premium Category

With nearly 4,000 unique SKUs in Ontario alone, the role of the budtender is both challenging and crucial for retail success in the competitive cannabis market. It is critical that budtenders have the knowledge and training needed to navigate the extensive product ranges available in the market.

It is also important that they understand the diverse consumer segments within the cannabis industry to suggest products that can appeal to various demographics and spending tiers.

The Importance of the Premium Category

The premium category plays a vital role in the industry. Converting mainstream consumers to premium options can significantly boost revenue. Achieving this conversion requires budtenders who are skilled in upselling and basket building. Training budtenders in these techniques is essential for maximizing success.

Curating an Inclusive Menu

An effective menu should include value, mainstream, and premium products. Many successful retail establishments across industries offer a range of “Good, Better, Best” products. While the premium items may not sell the fastest, they provide an opportunity to upsell by highlighting their features and benefits. Budtenders need a comprehensive product selection to successfully upsell, which is why having a well-curated selection is critical.

We often hear: “Premium doesn’t sell here.” Is that because consumers don’t want premium products, or because consumers haven’t been engaged on the benefits of premium products? Budtenders want every consumer to have a great experience by recommending a product that will delight them and keep them coming back for more, but often may find themselves recommending products simply because they are the only ones available – and ones they may have little to no experience with.

Supporting the Sales Shift to Premium

Upselling requires both product knowledge and effective sales methods. Retailers should leverage their licensed producer (LP) counterparts for staff education and in-store support. Without this support, budtenders may struggle to explain the value of premium products. Effective upselling involves understanding and communicating key selling points, which LPs can help with.

LP representatives can also support retail teams with samples, in-store displays, product knowledge sessions, and activations. Retailers must decide whether they want their staff to simply take orders or to act as knowledgeable advisors who enhance the consumer experience. A well-trained team can drive additional revenue, with LPs providing the necessary information and support.

The Role of Displays

The layout of a retail space is crucial. In traditional grocery stores, the ‘Golden Path’ along the store perimeter is designed to maximize customer engagement through displays and promotions. In cannabis retail, similar strategies can help budtenders engage with customers and guide them to explore products they might not be aware of.

Retailers should invest in display materials that clearly communicate product features and benefits. Effective displays act as a ‘silent salesperson’ by providing budtenders with visual tools to assist in upselling. Displays should be easy to understand and help budtenders present the product’s value effectively.

Collaboration for Industry Growth

LPs and retailers must work together to advance the industry and achieve mutual success. Elevating the budtender’s role in the sales process through comprehensive education, training, and experience is key. LPs and retailers both benefit when budtenders are well-informed and skilled, leading to recommendations based on quality, trust, and collaboration. Ultimately, the success of producers depends on thriving retail operations, where effective budtender engagement drives the industry forward.

Margaret Brodie is CEO of Rubicon Organics and Chris Still is VP Sales.

Tags: budtender (16), budtender training (1), Cannabis Marketing (40), Chris Still (1), Margaret Brodie (1), premium cannabis products (1), Rubicon Organics (1), upselling (2)