As the legal cannabis industry matures, pricing wars have intensified. Dispensaries across the country are locked in an ongoing battle to attract and retain customers, with deep discounts and promotional deals often acting as their most powerful weapons. But ‍are these deals driving larger purchases, or are they just eating into margins without increasing consumer spending?

Data from Sweed’s Point of Sale platform suggests the answer isn’t so straightforward. While discount-heavy strategies boost overall sales volume, they do not significantly increase per-transaction spending. Instead, the data reveals a growing divide between discount-driven customers and high-value, experience-driven buyers – a crucial insight that could influence how dispensaries approach pricing in 2025 and beyond. 

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Key Findings: The Truth About Discounts in Cannabis Retail 

Discounts Don’t Increase Transaction Size–But They Do Boost Bulk Buying 

Contrary to the common belief that discounts drive bigger individual purchases, Sweed’s data shows that average transaction size remains stable regardless of discount usage. 

• Price-sensitive customers (Frugal Customers (<1x average ticket) and Regular Buyers (1x average ticket) take the most discounts, yet their per-transaction spending remains the same as those who use fewer discounts.
• High-spending customers Whales (4x average ticket) & Big Spenders (2x average ticket) take fewer discounts yet purchase consistently, indicating that they are not driven by price but by product selection, convenience, and experience. 

What this means: Cannabis businesses may be better off focusing on discounts on bulk orders or first-time customers rather than applying across-the-board price cuts.

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The Rise of ‘Loyal Discount Shopper’ & the Risk of Profit Erosion

One of the most surprising trends is the growing reliance on loyal, discount-savvy shoppers who plan purchases around promotions and rarely buy at full price. 

• Loyalty (monthly) and Occasional (quarterly) buyers use discounts at the highest rate, but their per-transaction spending remains flat. 
• Frequent buyers (Champions who shop weekly) spend consistently, even when discounts are lower – suggesting they are less discount-dependent.

What this means: Retailers are training customers to expect discounts, which could lead to shrinking margins without long-term revenue growth. 

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Tourists and First-Time Buyers Are Less Swayed by Discounts 

Surprisingly, first-time and infrequent customers (Tourists and New Buyers) show minimal impact from discounts.

• Despite receiving introductory offers, new customers have the lowest per-transaction spending. 
• Lost customers (those who purchase fewer than two times a year) do not return more frequently even with high discounts. 

What this means: Retailers need to rethink first-time buyer strategies, focusing on loyalty incentives and experience-based selling rather than just price reductions. 

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Industry Impact: What This Means for Cannabis Retailers in 2025

With cannabis businesses facing increasing competition, price comparison, and tax burdens, retailers must make tough decisions about their pricing and promotional strategies. Sweed’s data points to a few key takeaways: 

1. Less is More: Instead of running non-stop sales, dispensaries should offer targeted, high-value promotions that drive bulk purchases without eroding margins 
2. The VIP Experience Matters: For high-spending, experience-driven customers, exclusive access to new product drops, premium services, and personalized shopping experiences could be more valuable than discounts.
3. Loyalty Beats Discounts: Dispensaries should explore subscription-based discounts or spend-and-save loyalty models rather than flat percentage discounts that customers come to expect. 
4. First-Time Buyers Retention Needs an Overhaul: Instead of one-time discounts, new customers may respond better to rewards programs, personalized recommendations, and membership perks that build long-term value. 

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A Turning Point for the Industry 

For years, the cannabis industry has operated under the assumption that price wars and heavy discounting were the only way to stay competitive. But Sweed’s data tells a different story – one that challenges conventional pricing wisdom and offers a new path toward profitability. 

Dispensaries that pivot away from discount addiction and toward strategic, experience-driven pricing models will likely emerge as market leaders. It’s time for cannabis retailers to move beyond margin-cutting and start building sustainable, high-value customer relationships. 

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About Sweed

Sweed is an all-in-one dispensary platform offering all of the functions of retail operations and management from one simplified yet powerful engine, combining the power of point of sale, eCommerce, marketing & loyalty, CRM, business intelligence, delivery, and more. Sweed empowers businesses with the data they need to make smarter, more profitable decisions. 

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Interested in learning more? Schedule a demo today.

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