At a Glance
- Every cannabis consignment agreement covers splits, shrinkage, discounts, and payment timing
- We draft the contract terms — you and the vendor review and approve
- Terms are configured per vendor and per category in ShelfSpace
- Changes to terms are logged and take effect on the next settlement cycle
What a Cannabis Consignment Agreement Covers
Every cannabis consignment agreement on ShelfSpace defines the financial relationship between your dispensary and a vendor. We draft the initial terms based on your preferences, configure them in the platform, and both parties review before anything goes live. No contract is active until you and the vendor agree.
The contract isn't a static PDF that sits in a drawer. It's a living configuration inside ShelfSpace that directly controls how weekly settlements are calculated. When terms change, the platform reflects those changes starting with the next cycle.
Key Terms in Every Contract
Category-level profit splits. Each product category (flower, concentrates, edibles, etc.) gets its own vendor/retailer revenue split. A vendor might receive 60% on flower but 55% on edibles. See profit splits for how these work in practice.
Aging discount thresholds. Contracts define how long product can sit before markdowns apply. For example, flower might trigger a 10% aging discount after 30 days and 25% after 60 days. These tiers protect you from slow-moving inventory. See aging discounts for details.
Shrinkage and loss terms. The contract specifies who bears the cost of shrinkage — theft, damage, or miscounts. Typically the vendor absorbs shrinkage on consigned goods, but this is negotiable.
Discount authorization. If your store runs a promotion on a vendor's product, the contract determines whether that discount comes from the vendor's share, the retailer's share, or is split between both. Many retailers negotiate vendor-funded discount budgets through credit recovery.
Payment timing. Settlements run weekly. The contract confirms the day of the week for settlement cutoff and the expected delivery window for checks.
How Contracts Get Set Up
During onboarding, you tell us your preferred split percentages and any special terms for specific vendors. We configure each partnership in ShelfSpace with the agreed category splits, aging tiers, and payment terms.
The vendor receives a portal invitation and can review their terms online. Both sides can propose changes through a negotiation log that tracks every revision. Once both parties accept, the terms lock in and settlements begin.
Updating Terms Later
Renegotiating is straightforward. Either side can request a change, and we update the configuration after both parties confirm. Every change is logged with a timestamp, and the new terms apply starting with the next settlement period. Historical settlements are never retroactively recalculated — the old terms stay on the record. Visit our consignment service page for more on the overall model.