At a Glance
- Cannabis inventory markdowns on expiring product are handled through aging discount tiers
- Tiers are set per category — flower, concentrates, and edibles age differently
- Discounts reduce the vendor's share, not the retailer's margin
- Vendor-specific overrides take priority over global tiers
- All aging deductions appear on the weekly settlement report
Why Cannabis Inventory Markdowns Matter
Cannabis inventory that sits on the shelf too long loses potency, appeal, and value. Aging discounts on expiring product give retailers a structured way to mark down slow movers without eating into their own margin. On ShelfSpace, aging discounts are built into the consignment model — they're negotiated upfront, configured per category, and applied during every weekly settlement.
The result: shelves stay fresh, customers see competitive prices, and vendors are incentivized to send product that actually sells.
How Aging Tiers Work
Aging tiers define the discount percentage that applies when product has been on the shelf for a certain number of days. Each tier specifies a category (like flower or edibles), a minimum age in days, an optional maximum age, and the allowed discount percentage.
For example, a typical flower aging schedule might look like this:
- 0–29 days: No discount — product is fresh
- 30–59 days: 12.5% aging discount
- 60–89 days: 25% aging discount
- 90+ days: 50% aging discount
Concentrates and edibles typically have longer thresholds since they have a longer shelf life. Every category can have its own schedule, and those schedules are defined in your consignment contract.
Vendor-Specific Overrides
ShelfSpace supports two levels of aging tiers: global tiers that apply to all vendors in a category, and partnership-specific overrides for individual vendors. When a vendor has their own negotiated aging schedule, those terms take priority over the global defaults.
This is useful when a premium vendor negotiates more lenient aging terms, or when a new vendor agrees to steeper discounts during a trial period. The system checks for vendor-specific tiers first, then falls back to the global tier for that category.
How Aging Discounts Affect Settlements
During settlement, the engine checks the age of every item in inventory. If an item falls within an aging tier, the discount percentage reduces the vendor's share for any sale of that product during the period. The discount comes off the vendor's side — your retailer margin stays intact.
Every aging deduction appears as a line item in Section 3 of the settlement report, showing the product, days on shelf, tier matched, and dollar amount deducted. Vendors can review these deductions in the vendor portal to understand exactly what was applied and why.
If actual store-level discounts exceed the vendor's aging discount budget, the excess is tracked as a margin deficit — a topic covered in the settlements documentation.