How to Increase Average Order Value in Your Cannabis Dispensary
Want to boost revenue without more foot traffic? Learn how to increase average order value (AOV) in your dispensary using smart layout, upselling tactics, and data-driven tools.
How to Increase Average Order Value in Your Cannabis Dispensary
Growing your dispensary revenue doesn’t always require more customers. Sometimes, the best opportunity is getting existing customers to spend just a little more per visit.
The cannabis industry is experiencing unprecedented growth, but with increased competition comes the need for smarter business strategies. Average Order Value (AOV) optimization is one of the most effective ways to boost profitability without the overhead costs of acquiring new customers.
Here are 9 proven strategies to increase your dispensary’s average order value—while actually improving the customer experience and building stronger relationships with your patrons.
Understanding Average Order Value in Cannabis Retail
What is AOV? Average Order Value is the average amount customers spend per transaction. In cannabis retail, this typically ranges from $45-$85, depending on your market and product mix.
Why AOV matters: A 10% increase in AOV can have the same impact on revenue as a 10% increase in customer traffic—but without the marketing costs and operational complexity.
Industry benchmarks: Top-performing dispensaries achieve AOVs of $75-$120 through strategic product placement, staff training, and customer experience optimization.
1. Curated Product Bundles & Themed Collections
Strategy: Create themed product bundles that combine complementary items at a slight discount.
Implementation:
- Sleep Starter Pack: Indica flower + CBD oil + sleep gummies
- 420 Party Kit: Pre-rolls + rolling papers + lighter + grinder
- Wellness Bundle: CBD tincture + topical cream + wellness guide
- New User Kit: Vape pen + cartridge + cleaning supplies
Why it works: Bundles increase perceived value while moving more SKUs per transaction. Customers feel they’re getting a deal while you’re actually increasing total revenue.
Pro tip: Use your POS system to track which bundles perform best and adjust your offerings accordingly.
2. Smart Kiosk Recommendations & Digital Upselling
Strategy: Use in-store technology to suggest companion products based on customer selections.
Implementation:
- Interactive displays that show related products when customers lift items
- Digital menus with “Frequently Bought Together” suggestions
- QR codes on products that link to educational content and related items
- Tablet-based ordering with built-in recommendation algorithms
Technology platforms: The Peak Beyond and similar platforms let customers physically interact with products and see digital upsell options instantly.
ROI: Dispensaries using smart kiosks report 15-25% increases in AOV.
3. Strategic Tiered Discounts & Volume Incentives
Strategy: Encourage larger purchases through carefully designed discount structures.
Implementation:
- Buy 2, get 1 half off on popular categories
- 10% off orders over $100 (increases AOV by 8-12%)
- Free pre-roll with purchase of $75+
- Tiered loyalty rewards that unlock at spending thresholds
- Bulk discounts on concentrates and edibles
Psychology: Customers are more likely to add items to reach discount thresholds, especially when the savings are clearly communicated.
Example: “Add just $15 more to your cart and save 10% on your entire order!“
4. Comprehensive Staff Training for Natural Cross-Selling
Strategy: Transform your budtenders into skilled sales consultants who can naturally suggest complementary products.
Training focus:
- Product knowledge: Deep understanding of effects, flavors, and use cases
- Customer psychology: Reading cues and matching products to needs
- Natural language: Teaching staff to say things like:
“If you enjoy that indica for sleep, this CBD oil would pair perfectly for deeper rest.” “This vape cartridge comes with a 20% discount on accessories today.” “Many customers who buy this strain also love these edibles for extended effects.”
Role-playing exercises: Practice different scenarios to build confidence and natural delivery.
Incentives: Consider commission structures or bonuses tied to AOV performance.
5. Advanced Loyalty Program Optimization
Strategy: Design loyalty programs that specifically encourage higher spending.
Implementation:
- Spending-based tiers: Bronze ($0-500), Silver ($501-1000), Gold ($1001+)
- Double points days for high-value purchases
- Exclusive member pricing on premium products
- Early access to new products and limited releases
- Personalized offers based on purchase history
Example: “You’re just $20 away from Gold status—upgrade today and unlock 15% off all concentrates for the next month!”
Technology: Use your dispensary software to track customer spending patterns and trigger personalized offers.
6. Real-Time AOV Dashboards & Performance Tracking
Strategy: Monitor and optimize AOV performance with data-driven insights.
Key metrics to track:
- Daily AOV trends and seasonal patterns
- Product category performance and cross-sell success rates
- Staff performance and individual contribution to AOV
- Customer segment analysis (new vs. returning, high vs. low spenders)
Implementation:
- Daily AOV goals with staff recognition for hitting targets
- Weekly performance reviews to identify opportunities
- Monthly strategy sessions to adjust tactics based on data
- Real-time alerts when AOV drops below targets
Platforms: Dutchie and Cova provide excellent AOV tracking and reporting features.
7. Optimized Online Pre-Order Upsell Flow
Strategy: Capture additional sales through strategic online ordering prompts.
Implementation:
- “People also added…” suggestions during checkout
- “Complete your experience” prompts for accessories
- “Don’t forget the essentials” reminders for papers, lighters, etc.
- Limited-time offers that expire during the ordering session
- Personalized recommendations based on cart contents
ROI: Online upsells typically increase cart totals by 10-25%.
Technology integration: Ensure your ecommerce platform supports sophisticated recommendation engines.
8. Strategic Impulse Buy Placement
Strategy: Position high-margin, low-cost items near checkout to capture last-minute purchases.
Product selection:
- Rolling papers and wraps (high margin, low cost)
- CBD bath bombs and topicals (impulse wellness purchases)
- Lighters and accessories (essential add-ons)
- Small edibles and concentrates (trial-sized premium products)
- Gift cards and merchandise (brand building)
Placement strategies:
- Checkout counter displays with clear pricing
- Endcap displays near the register
- Digital screens showing rotating offers
- Staff recommendations during final transaction
Psychology: Customers are more likely to add small items when they’re already committed to a purchase.
9. Subscription Services & Repeat Purchase Incentives
Strategy: Create recurring revenue streams while increasing customer lifetime value.
Implementation:
- Monthly delivery subscriptions with 5-10% discounts
- Auto-refill programs for regular products
- Membership tiers with exclusive pricing
- Loyalty point multipliers for subscription customers
- Early access to new products for subscribers
Customer benefits:
- Convenience of automatic reorders
- Cost savings through subscription discounts
- Exclusive access to limited products
- Personalized recommendations based on usage patterns
Advanced AOV Optimization Strategies
Customer Segmentation & Personalized Marketing
High-value customers: Offer exclusive products, early access, and premium services New customers: Focus on education and building trust through quality products Occasional users: Encourage trial of new products and formats Regular customers: Reward loyalty and encourage premium upgrades
Seasonal and Promotional Strategies
Holiday bundles: 420, 7/10, and other cannabis holidays Seasonal themes: Summer wellness, winter relaxation, spring renewal Limited-time offers: Create urgency with time-sensitive promotions Collaboration products: Partner with local brands for exclusive offerings
Technology Integration for AOV Optimization
AI-powered recommendations: Use machine learning to suggest products based on purchase history Predictive analytics: Forecast customer needs and stock accordingly Mobile app features: Push notifications for personalized offers Social media integration: Share customer success stories and product highlights
Measuring and Optimizing Your AOV Strategy
Key Performance Indicators
Primary metrics:
- Average Order Value (target: 10-15% increase)
- Items per transaction (target: 2.5-3.5 items)
- Cross-sell success rate (target: 25-35%)
- Customer lifetime value (target: 20-30% increase)
Secondary metrics:
- Product category performance
- Staff sales performance
- Customer satisfaction scores
- Return visit frequency
A/B Testing Your Strategies
Test variables:
- Bundle pricing and product combinations
- Discount thresholds and percentages
- Staff training approaches and incentives
- Technology implementations and user interfaces
Measurement period: 30-90 days for meaningful results Success criteria: Statistically significant increases in AOV without negative impact on customer satisfaction
Common AOV Optimization Mistakes to Avoid
1. Aggressive upselling: Don’t push products customers don’t need 2. Ignoring customer feedback: Listen to what customers actually want 3. Focusing only on price: Value and experience matter more than discounts 4. Neglecting staff training: Your team is your most important AOV tool 5. Forgetting the customer experience: AOV increases should enhance, not detract from, customer satisfaction
Final Thoughts: Building Sustainable AOV Growth
Raising AOV doesn’t mean pushing unwanted products or aggressive sales tactics. It’s about creating genuine value for your customers while building a more profitable business.
The most successful dispensaries focus on:
- Educating customers about products and their benefits
- Creating memorable experiences that encourage return visits
- Building trust through quality products and honest recommendations
- Leveraging technology to enhance, not replace, human interaction
- Continuously optimizing based on data and customer feedback
Remember: Every customer interaction is an opportunity to increase AOV while strengthening your relationship with that customer. When done right, AOV optimization leads to happier customers, healthier margins, and a more sustainable business model.
Track your results, test different approaches, and build a culture of smart selling that prioritizes customer value above all else.
Related reading: Learn more about dispensary management and technology solutions for cannabis retail.
Disclosure: Some tools and links mentioned may be affiliate links, helping us support this blog at no extra cost to you.