Dispensary Vendor Promotion Setup

How Dispensary Vendor Promotion Setup Works

Creating a co-op promotion in ShelfSpace is a dispensary vendor promotion setup that both sides agree to before it goes live. Either the retailer or the vendor can propose, and the other party reviews and responds. Once both sides accept, the promotion activates on the start date and we handle everything else.

This page walks through the full process from proposal to credit generation. For a high-level overview of how co-op promotions work, see Co-Marketing Promotions. Promotions tie directly into our credit recovery service, where vendor-funded discounts become formal credit memos.

Step 1: Set the Terms

When creating a promotion, you define the following:

• Vendor (or retailer) — who you are running the promotion with
• Discount percentage — the customer-facing discount (e.g., 15% off all flower)
• Co-marketing split rate — the portion of the discount the vendor covers (e.g., 0.5 means 50/50 split)
• Start and end dates — the promotion window
• Product scope — all products from the vendor, or specific items
• Budget cap — optional maximum dollar amount the vendor will contribute

Step 2: Vendor Approval

Once you submit the proposal, the other party receives a notification in their portal and via email. They have three options:

• Accept — the promotion is locked in and will activate on the start date
• Counter — they propose different terms (different discount, dates, or budget) and send it back
• Decline — the promotion is cancelled

Counter-proposals can go back and forth until both sides agree or one side declines. Every round is logged so you have a clear record of the negotiation.

Step 3: Promotion Goes Live

On the start date, the promotion is active. We track every sale of the promoted products using POS data from your POS integration. Both the retailer and vendor can monitor performance in real time: units sold, total discount given, and budget remaining.

If a budget cap was set, we pause the promotion when the cap is reached — no surprise overages.

Step 4: Credit Generation

When the promotion ends (or the budget cap is hit), we calculate the vendor's share of the total discount and generate a co-marketing credit memo. The credit memo goes through the standard approval workflow — the vendor reviews it and can accept or dispute before it is applied to their next payment.

Creating Promotions Through ShelfiQ

Vendors can propose promotions directly through ShelfiQ using natural language. For example: "Propose a 20% off promotion with Mountain High for all flower, starting April 1 through April 30, with a $2,000 budget cap." ShelfiQ creates the proposal and sends it to the retailer for approval. See What ShelfiQ Can Do for more on promotion tools.

Tracking Impact After the Promotion

After the promotion ends, the Insights dashboard shows a before-and-after comparison: sales velocity during the promotion vs. the prior period, total units moved, revenue impact, and the net cost to the vendor after credits. This data helps both sides decide whether to run the promotion again.