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Deep Discounting Is Not a Strategy,
It’s a Slow Leak on Your Profits

Stop training cannabis customers to pay less and start turning every new customer into a repeat buyer worth 2–3x more.

Your Next Steps to #StopTheDiscountRace
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Death by Discounting: The Dispensary Data Doesn’t Lie

Discounting is rising across markets, bringing risks of margin erosion, brand dilution, and overstocking that threaten your profitability.

Holiday Spikes Don't Always Boost Sales

Average cannabis discounts have climbed year-over-year, but holiday spikes don’t always translate into higher revenue

Headset

32% Price Drop Since 2021

Average retail cannabis prices have dropped by 32% since 2021, putting pressure on margins even as competition intensifies

Flowhub

13% Average Discount Rate

Average cannabis retail products are discounted at 13%, which significantly cuts into profit margins.

Greenstate

Overstock Drives Deep Discounts

Overstock drives deep discounts, hurting margins and training customers to wait for deals.

240 Logistics

Deep discounts might drive short-term traffic, but the long-term impact is devastating:

15-20% Average Discount =
20–30% Margin Loss
AOV Shrinks from
$75 to $52.50
LTV Decreases Rapidly When
Discounts Are Habitual
Most Dispensaries Operate on Razor-Thin Margins (<10%)

According to data from Headset.io, discounting is not driving true loyalty—it’s creating coupon-chasing behavior that’s expensive to maintain.

See the Impact Instantly

Your discounts cuts both your prices AND PROFITS. See exactly how much margin you lose for every % discounted.

Margin loss for every % discounted
See the real impact on your bottom line
Orders needed to break even
Calculate how many extra sales you need
Which promos actually help vs. hurt
Make data-driven promotional decisions

Webinar Series: Escaping the Discount Death Spiral

Join all four episodes or pick the ones that matter most to your business. Each session is packed with thought leaders, data, real-world examples, and actionable strategies to help you win without racing to the bottom.

See the data on how discounting drains margins and why smarter strategies outperform. Learn how to spot margin risks, boost customer value, and replace the discount spiral with sustainable discount strategies.

Mitchell Laferla
September 25, 2025
Register now

See how loyalty programs and gamified rewards are outperforming discounting at every turn, backed by real customer data, store-level case studies, and insights from loyalty marketing strategists.

Josh Lamb
October 2, 2025
Register now

If you’ve been looking for a way out of the discount race but aren’t sure how to pivot without taking a hit, this session is for you. You’ll walk away with practical strategies used by the best in cannabis and CPG to grow sustainably.

October 9, 2025
Register now

Explore branding strategies behind pFriem’s rise from craft to cult brand. Learn how cannabis and CPG companies can build premium, lasting brands.

Rudy Kellner
October 16, 2025
Register now

The 30/60/90 Day Discount Escape Plan

From margin bleed to margin growth in just three months. We’ll give you the step-by-step roadmap to shift away from discount dependence and toward sustainable, loyalty-driven revenue.

Why it works:

This phased approach gives you a realistic, data-backed path to retrain customer buying behavior and recover lost profit—without losing traffic or sales momentum.

  • Graduate transition prevents customer shock

  • Data-driven decisions at every step

  • Maintains revenue while building loyalty

30

First 30 Days
Foundation & Analysis
  • Audit all promotions and identify margin leaks

  • Run the Price War Calculator on your top-selling SKUs

  • Establish baseline metrics for customer behaviour

60

Next 60 Days
Transition & Testing
  • Introduce micro-discounts and value-added effects

  • Pilot gamified lotalty rewrads programs

  • Track uplift vs. margin loss with A/B testing

90

Final 60 Days
Full Implementation
  • Fully transition to a loyalty-first model

  • Implement tiered incentives and VIP programs

  • Build campaigns that increase AOV without cutting price

Get your Complete Escape Plan

Detailed templates, checklists, and step-by-steps instructions for each phase of your transformations.

Free with your webinar registration

Your Next Steps

Audit Your Promotions
Are you rewarding loyalty or teaching price sensitivity?
Join Our Webinar Series
Hear from experts and operators who’ve made the switch.
Grab the Discount Escape Plan
Be strategic with discounts instead of racing to the bottom.