Fourth of July Prep
The 4th of July is a profitable time for cannabis businesses, according to past data and current predictions. This rings true for basically every holiday, but the 4th of July is definitely one to watch and prepare for if you’re a consumer-facing cannabis company.
Even B2B companies need to take note, as they support the B2C company providing cannabis for July 4th. You might get ahead of the game and ask your retail partners what they’re expecting to sell on the Fourth of July.
According to cannabis technology company, Akerna, in 2019 Americans spent $400 million on cannabis during the week of 4th of July. This means Americans spent more on cannabis than bbq or chicken, a classic Independence Day staple found in millions of households across the country!
The company even predicts 4th of July cannabis sales will surpass wine sales sooner than we think, creating a rivalry between the two on the all-American affair.
Plenty of dispensaries close on the 4th of July, so decide if you’re going to be one of them. Some people want to give their employees the day off, take the day off to celebrate themselves, or they simply don’t want to fight the customer crowd that comes with a holiday like the 4th.
4th of July brings customers days before the holiday
Whether you’re open on the actual holiday or not, which falls on a Sunday this year, you’d be wise to stay open and attract customers on the days leading up to Independence Day.
Historically, these are the best-selling days of the week and we can only assume that will be even more so this year, considering the holiday is on Sunday when people want to be home, and COVID-19 is now staggering the crowds.
- Sunday, June 30th, 2019, the Sunday leading up to the 4th, was the highest-grossing Sunday of the year. Sales were up more than 50% of the daily average.
- Monday, July 1st, 2019, was the highest-grossing Monday of the year. Sales were 45% above average.
- Tuesday, July 2nd, 2019, followed suit as the highest-grossing Tuesday of the year and saw a 53% increase in daily sales.
- Wednesday, July 3rd, 2019, crushed the days prior and saw a whopping 112% increase in daily sales.
- Thursday, 4th of July 2019, saw slightly higher than average sales, despite many retailers closing up on the holiday.
July 3rd seems to be the day to prepare for if you’re following past trends. It isn’t uncommon for cannabis sales to hit a record high the day before a holiday. To prove it, Green Wednesday is slowly gaining traction. It’s the day before Thanksgiving and at one point, Leafly called it the busiest day of the year behind 4/20.
July 10th, or 710, is also on the rise in the cannabis community and it’s just six days after July 4th, so decide now if you want to partake. 710 is a cannabis-specific celebration, dubbed National Dab Day by enthusiasts. 710 upside down and backward spells oil, so cannabis consumers created a day of it. Plenty of dispensaries offer sales on dabs for 710.
Check last year’s data (and the year before)
Check your sales data from last year to prepare for the upcoming 4th of July holiday. As you scour your data, find the answer to these questions:
- What products did we sell the most of?
- What products did we sell the least of?
- What times saw the busiest crowds?
- What were our sales numbers last year and what are our goals for this year? What do we need to do to meet those goals?
Of course, your sales data won’t ever be replicated year after year, and throw in the oh-so predictable COVID-19… you won’t know exactly what you’re working with until it comes. At the very least, the data prepares you the best it can and helps you forecast sales goals for this year.
This would also be a good time to determine any sales or deals you’ll be offering on the 4th. Remember, your best-selling product might not generate the most revenue for you. First, determine how much money you are losing acquiring the product and paying for various handling processes. Checking the Cost of Goods Sold (COGS) against revenue is a solid way to audit your inventory.
Synchronize your data from all locations
Keep in mind: if you have multiple locations, it’s important to analyze all of the data you have, not just a single location. You might have nine locations across the country or just two in your small town. No matter the number of locations or licenses, if you have more than one, it’s important to take all of them into consideration when making your predictions.
Flourish Software keeps track of your sales, across all channels and locations to better prepare you for holidays like the 4th of July. Schedule a demo with us to see if we’re the right fit for you.