Amid tax woes and price compression, cannabis retailers are searching for new ways to boost their bottom lines.
The secret solution? Small-ticket items and smarter retail systems, according to Mike Martin, the vice president of sales at Denver-based gear wholesaler Luvbuds.
Oversaturation and excess supply have driven retail prices down by about 32% since 2021, while operators continue to face high regulatory costs, overhead and federal tax burdens.
Enter “The TRIAD”- a collaboration between data analytics platform Hoodie, B2B software provider SparkPlug, and the marketing prowess of LuvBuds that’s built on a simple premise: sell more of the small stuff.
In a recent conversation with MJBizDaily, Martin outlined how the partnership pairs real-time inventory data with visual merchandising and incentive-based staff training.
It all adds up to a conclusion that cannabis accessories can help steady the bottom line.
Cannabis retailers are leaving money on the table
Unlike retailers in other sectors, cannabis store operators have high fixed costs.
For many, the only viable path to stability is finding new revenue within the four walls of the store – small wins that add up over time.
That’s the gap Martin believes accessories can fill to turn an overlooked category into a dependable source of incremental profit.
According to Margin, accessories account for only 1% to 3% of dispensary sales. That’s far below their share in mainstream retail, where impulse buys reliably lift margins.
Martin jokingly calls it “the 4:45 strategy” – the moment before closing when retailers remember they should probably restock lighters.
The missed opportunity isn’t about underused shelf space; it’s about visibility.
Each overlooked lighter or pack of papers is a small, easy dollar left on the table, he said.
That’s where The TRIAD comes in.
How cannabis retailers can boost their margins
Instead of leaving the accessory market to corner stores or smoke shops, Martin believes cannabis stores should operate like one-stop shops, offering accessories like “fries with the hamburger.”
Every small sale boosts basket size, adds convenience, and keeps customers from spending those dollars elsewhere, he says.
That mindset drives The TRIAD collaboration, built on three retail fundamentals: supply chain, merchandising, and staff engagement.
The model improves systems without adding complexity, offering a low-risk, high-return approach.
- The first leg is supply chain optimization, managed by LuvBuds and Hoodie, which ensures the right SKUs are always in stock and replenished automatically.
- The second highlights visual merchandising, featuring the “Smoke Shop in a Box” display: an impulse-buy fixture near checkout that makes accessories visible and easy to grab.
- The third, powered by SparkPlug, emphasizes budtender education and incentives.
Staff can earn an extra $1 to $2 per hour by meeting weekly accessory sales goals, with incentives funded by LuvBuds, not the retailer, keeping store margins intact.
Rather than chasing new customers, The TRIAD helps retailers maximize value from existing ones.
TRIAD can boost sales by 4%, as per Denver pilot program
The TRIAD model is already underway with a pilot program launched in 50 Denver-area dispensaries.
Early feedback indicates it’s been easy to implement and works well with existing systems, Martin claims.
Participating stores could boost accessory sales from 2% to 4% of total sales in just three to six months, essentially doubling revenue from this category, he said.
The pilot’s short-term focus is on sub-$30 grab-and-go items that drive quick volume, with higher-end accessories reserved for later phases once staff training and sell-through habits take root.
Over time, Martin aims to build on those results and expand the program nationally across both MSOs and independent stores.
If the pilot succeeds, The TRIAD could redefine distributors and tech partners as hands-on collaborators in dispensary operations and profitability.
Results of TRIAD pilot program to come by MJBizCon
As dispensaries head into another MJBizCon season focused on profitability and partnerships, the TRIAD stands out as a reminder that sometimes innovation means returning to fundamentals.
At this year’s conference, that back-to-basics approach is likely to spark bigger conversations about how operators can drive profitability through execution rather than just new software.
By the time participants arrive in Las Vegas Dec. 2 – 5 for MJBizCon, the pilot’s early data will serve as a live case study in low-cost, high-impact retail optimization,” he said.
For Martin, the takeaway is practical, not philosophical.
“If it’s available to be sold, it will be bought,” he said. “If you can double your accessories business, it’s well worth it with the 15 minutes you use a day to think about it.”
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