The Setup
A vendor launched a new edible line — different format, higher price point, no sales history in the market. They pitched it to dispensaries across their territory. Every buyer said the same thing: "We're not buying 100 units of something we've never sold." The vendor couldn't get shelf space. The dispensary wouldn't risk the cash.
Both sides were stuck. The vendor had a product they believed in. The dispensary had shelf space but no appetite for risk on an unknown SKU.
What We Did
We structured a consignment agreement between the vendor and the dispensary. The vendor shipped 120 units across 4 SKUs. The dispensary carried them with zero upfront cost. If they sold, the vendor got paid through the weekly settlement. If they didn't, the product went back.
The terms:
- Standard weekly settlement cycle, synced to POS sales
- 52% margin floor for the dispensary
- Vendor owns unsold inventory — if it expires or doesn't move, it's their cost
- Full Metrc tracking from delivery through sale
No purchase order. No cash upfront. No risk for the dispensary. And the vendor got distribution they couldn't get any other way.
How It Works
Consignment flips the traditional wholesale model. Instead of the dispensary buying inventory upfront and hoping it sells, the vendor places product and gets paid when it does. We handle the settlement math, the Metrc tracking, and the vendor payments.
For new products, this is especially powerful. The dispensary gets to test a new SKU without tying up capital. The vendor gets real sell-through data from an actual retail environment — not a pitch deck, not a projection, but real numbers from a real store.
Both sides had full visibility from day one. The vendor could see sell-through per SKU in their settlement reports. The dispensary could see margin performance. If a SKU wasn't moving, they'd know in the first week — not after 90 days of dead stock.
The Result
The new edible line sold $14,230 in its first 30 days. The dispensary earned a 52% margin on every unit. The vendor got real sell-through data to take to their next retailer pitch. The product is now a permanent consignment SKU.
Without consignment, this product would still be sitting in the vendor's warehouse. The dispensary would never have carried it. Consignment turned a "no" into a no-risk "yes" for both sides.
The Takeaway
The buyer wouldn't buy it. The vendor couldn't sell it. Consignment made it a no-risk yes for both sides.
If you're a dispensary buyer turning down new products because you can't risk the cash — or a vendor who can't get shelf space — consignment solves this. Talk to us about how we structure these deals.