The Art of Dispensary Upselling: How Dispensaries Can Use Upselling to Drive Revenue – Without Drowning in Discounts

Discover how cannabis dispensaries can use data-driven upselling to increase cart sizes, protect margins, and improve customer satisfaction–all without discount overload. Learn best practices and see how Sweed POS makes it easy.

Guides
August 7, 2025

Why Upselling Matters (Especially in a Discount-Saturated Market) 

The cannabis industry is experiencing a flood of promotions and discounts. While markdowns can drive traffic, they often erode margins. When done effectively, data-backed upselling boosts average cart sizes without relying on constant discounts. The key is to offer value through personalized recommendations and product pairings. 

Best Practices for Upselling in Cannabis (and Beyond)

  1. Leverage Customer Purchase History for Personalized Offers: Use customers’ past purchases to recommend complementary products. For instance, suggest a matching pre-roll or rolling papers if they bought an eighth of flower. 
  2. Encourage Repeat Purchases with Favorites-Based Suggestions: If a customer has a favorite strain, introduce them to a similar product or a premium variant. Highlighting products tailored to their preferences fosters trust and drives sales. 
  3. Focus on High-Margin Product Pairings: Train budtenders to recommend high-margin products that complement customer favorites. For example, pair a premium vape cart with their go-to gummies to increase cart size and profit margins. 
  4. Use Bundling to Create Value (Without Overusing Discounts): Offer curated bundles such as a ‘Chill Night’ pack featuring an edible, pre-roll, and bath soak. This increases cart size while maintaining product value. 
  5. Create Limited-Time Offers for Urgency: Occasional flash deals (e.g., “Buy an eighth, get a pre-roll for $5) can drive impulse buys without devaluing your offerings. 

When to Upsell (and When Not To)

Do Upsell… When a customer is exploring options, seeking advice, or expressing curiosity about products. Offer tailored recommendations based on their needs or preferences to create a value-driven experience. 

Don’t Upsell… When a customer appears rushed, expresses a strong preference, or has a clear intent to purchase a specific item. Pushy upselling can damage trust and customer satisfaction. 

Consider Timing! Build rapport before suggesting add-ons and ensure the recommendation is relevant to their intended purchase. 

Use Soft-Selling Techniques. Frame recommendations as solutions or upgrades, such as, “This edible pairs well with your flower selection for a balanced experience.” 

The Benefits of Effective Upselling 

  • Higher Average Order Value: Small add-ons, such as pre-rolls, or accessories, can significantly increase revenue. Bundled offers and complementary pairings further entice customers to add more to their carts. 
  • Increased Profit Margins: Promoting high-margin products or premium offerings, such as top-tier flower or artisanal edibles, helps maximize profitability. Focus on pairings that enhance the customer’s experience while driving revenue. 
  • Stronger Customer Relationships: Personalized suggestions build trust and loyalty. Thoughtful upselling, such as recommending products based on past purchases or favorites, positions your dispensary as attentive to customer preferences and needs. 
  • Improved Customer Experience: Effective upselling isn’t just about making a sale – it’s about providing value. Recommending complementary items that enhance the customer’s purchase (e.g., pairing a strain with a terpene-enhancing accessory) can leave a lasting positive impression. 
  • Long-Term Customer Retention: Customers are more likely to return when they feel their preferences are understood. Providing curated recommendations tailored to their tastes encourages repeat visits and loyalty. 
  • Higher Average Order Value: Small add-ons can significantly increase revenue. 
  • Increased Profit Margins: Especially when prompting high-margin products. 
  • Stronger Customer Relationships: Personalized suggestions build trust and loyalty.

Target Audience: Who to Upsell To

New Customers: Recommend starter bundles, best-sellers, or curated discovery packs to introduce them to popular products and increase their cart size. Provide educational guidance to help them make confident purchases. 

Regulars: Use their purchase history to suggest new arrivals or complementary items to their favorites. Offering exclusive promos or loyalty perks can drive repeat visits and maintain engagement. 

High Spenders: Introduce premium, high-margin products such as limited editions or craft offerings. Focus on experiential upselling, like pairing a premium edible with a high-quality flower, to enhance their shopping experience and elevate their perception of value.

How Sweed Makes Upselling Seamless 

Sweed offers powerful tools to help dispensaries drive upsell opportunities: 

  • Customer Favorites: Track what customers love to provide tailored recommendations. Use this insight to upsell complementary or premium products based on their preferences. 
  • Purchase History Insights: Analyze customers’ past purchases to create personalized suggestions, offering curated product pairings or premium alternatives. 
  • High-Margin Product Focus: Highlight top-margin items and encourage staff to pair these with customer favorites to maximize revenue. 
  • Comprehensive Product View: Access a real-time product inventory to identify suitable upsell opportunities and make informed recommendations.

Key Takeaways and Next Steps

Upselling is an art – one that blends customer insights, thoughtful product pairings, and strategic offers. With tools from Sweed, dispensaries can increase cart size, protect margins, and improve customer satisfaction – all without drowning in discounts.

Sweed empowers dispensaries with actionable insights, allowing them to create personalized, data-driven upselling strategies that drive revenue and loyalty. Start using Sweed today to elevate your sales strategy, maximize profitability, and create memorable customer experiences.