For both dispensaries and consumers, first‑time delivery discounts have become a cornerstone of marketing strategy in the cannabis industry. These promotions—typically ranging from 15–40 % off or offering a penny pre-roll—are designed to attract newcomers, but are they truly worth it?
The Consumer’s Perspective
From a shopper’s standpoint, the appeal is clear. New customers often receive substantial cart‑level discounts—Nevada dispensaries regularly offer between 20–40 % off first orders and bonus loyalty points during initial visits. According to user reports, platforms like Tree of Life and Exhale have even offered complimentary pre-rolls with first orders. In mature markets, dispensaries tap into price-conscious consumers by providing significant incentives to choose them—they’re competing in a crowded space, after all.
Business Rationale Behind the Deals
Discounts serve several strategic purposes:
- Customer Acquisition: Cannabis delivery services often offer first‑time deals as a low barrier for trial. When consumers are deciding between equivalent competitors, even a modest price reduction can tip the scales.
- Larger Orders: Discounts can encourage customers to increase cart size—buy more than they planned to qualify for the deal—which improves average transaction value.
- Data Capture & Loyalty: These promotions typically require sign‑up, allowing dispensaries to collect email addresses or phone numbers and invite customers into loyalty programs, where repeated visits are incentivized.
Hidden Risks for Retailers
Experts caution that while acquisition numbers spike, profit margins may erode. Krista Raymer, a cannabis retail strategist, calls first-time discounts “traps”: without strong follow-up, dispensaries may see only one-time buyers. For example, a 20 % discount can cut gross margins from 40 % to near 32 %, forcing retailers to sell 25 % more just to break even.
Keys to Maximizing Impact
Dispensaries that succeed with first-time deals use them as launching pads, not finishing lines:
- Premium Customer Experience: Budtenders must deliver exceptional service to convert one-time buyers into regulars.
- Smart Terms: Discounts should apply to full carts or specific product bundles that promote higher spends; daily deals and item-level offers can boost exposure economically.
- Seamless Transactions: Systems must ensure the discount works smoothly—Flowhub advise dispensaries to test new promotions thoroughly.
- Retention Follow‑Up: Post‑purchase marketing—through texts, emails, or loyalty reminders—turns hesitant visitors into repeat customers.
Final Take: Balanced and Strategic
When first-time delivery discounts are executed thoughtlessly—without a plan for follow-up or margin protection—they can cost more than they gain. But when deployed as part of an integrated strategy that includes loyalty, upselling, data capture, and conversion tactics, they can be extremely effective. Dispensaries can quickly build a customer base and increase lifetime value; shoppers receive genuine value and a low-risk entry point into legal cannabis. As the market matures, first-time customer promotions remain valuable—but only to those who treat them as the beginning of a customer journey, not a standalone tactic.
Learn More: Savvy Shopper’s Guide: Demystifying Cannabis Delivery Promotions