New Jersey Cannabis Wholesale Handbook
Your Guide and Action Plan for Account Managers
Dashboard - Quick Access & Overview
Welcome, Account Manager! This dashboard provides quick access to all essential sections of your handbook and key daily actions.
Daily, Weekly, Monthly, Quarterly Tasks
Stay on track with your actionable tasks.
Partner Tiers & Relationships
Understand partner classifications and benefits.
Achievables Beyond Revenue
Discover holistic success metrics for partnerships.
Sales Strategies & Promotions
Learn how to navigate denials and run effective promotions.
Menu Distribution
Learn strategies for effective menu sharing.
2. Partner Tiers – Building Strategic Relationships
To foster diverse relationships and incentivize growth, we've established a tiered partnership program. This program is structured around two primary classes of engagement, further refined by the purchasing role and other key metrics. Each tier offers increasing benefits based on commitment, purchase volume, and strategic alignment, encouraging dispensaries to grow with us.
Primary Classes of Relationship:
Reciprocal Relationship Partners
These partners engage in a mutually beneficial exchange beyond just product sales, including instances where we also purchase products or services from them. This could involve co-marketing initiatives, exclusive product placements, data sharing for market insights, or collaborative community events. These are typically strategic accounts where both parties invest in the growth of the other, and such relationships can sometimes extend into other states.
Strictly Wholesale Partners
These partners primarily focus on purchasing products for resale. While still valued, the relationship is more transactional, centered on competitive pricing, product availability, and efficient logistics.
Tier Determination Criteria (Applied across both primary classes):
- Overall Sales Velocity: The speed and volume at which our products move through their dispensary.
- Distance from Our Retail Operations: Proximity can influence logistical efficiency and potential for localized co-marketing.
- Length of Relationship: Established, long-term partners are valued for their consistency and loyalty.
- Monthly Purchase Volume: The aggregate dollar amount of products purchased per month.
- Strategic Alignment: How well their business goals and customer base align with our brand's vision and product offerings.
Detailed Partner Tiers:
Tier 1: Emerging Partner
Criteria: New accounts, initial orders, or monthly purchase volume up to $5,000. Typically in the 'Strictly Wholesale' class.
Purchasing Role Focus: Often 'Job Specific Purchasers' or initial contacts.
Benefits:
- Standard wholesale pricing.
- Full access to our current product catalog.
- Dedicated account representative for initial onboarding and foundational support.
- Inclusion in general marketing communications and product updates.
- Access to basic product education materials.
Tier 2: Growth Partner
Criteria: Consistent monthly purchase volume between $5,001 and $15,000, or demonstrated commitment through repeat purchases and growing order sizes. Can be 'Strictly Wholesale' or developing into a 'Reciprocal Relationship.'
Purchasing Role Focus: May include 'Job Specific Purchasers' with decision-making capacity or 'Leadership Position Handling Ordering' from smaller operations.
Benefits:
- Preferred Wholesale Pricing: A competitive discount (e.g., 2-5% off standard pricing) on all orders.
- Priority Access: Early notification and pre-order opportunities for new product drops and limited editions.
- Joint Marketing Opportunities: Collaborative social media features, in-store signage support, and shared promotional efforts (e.g., brand days).
- Expedited Order Processing: Faster turnaround times for order fulfillment.
- Enhanced Product Training: On-site or virtual training sessions for dispensary staff to deepen product knowledge and sales techniques.
Tier 3: Strategic Partner
Criteria: High-volume accounts with consistent monthly purchase volume exceeding $15,000, or a demonstrated commitment to exclusive partnerships and category leadership. Often in the 'Reciprocal Relationship' class, or high-performing 'Strictly Wholesale' accounts.
Purchasing Role Focus: Typically 'Leadership Position Handling Ordering' or 'Job Specific Purchasers' with significant decision-making autonomy and large purchasing budgets.
Benefits:
- Premium Wholesale Pricing: Our most competitive discount (e.g., 5-10% off standard pricing), maximizing their profit margins.
- Exclusive Product Previews: First-look and exclusive pre-order access for all new product innovations before general release.
- Customized Co-Branded Marketing: Development and execution of bespoke marketing campaigns, co-branded materials, and joint advertising initiatives.
- Dedicated Senior Account Manager: A highly experienced point of contact for strategic planning and expedited issue resolution.
- Quarterly Business Reviews: In-depth meetings to analyze sales performance, discuss market trends, optimize inventory, and plan future growth strategies.
- Flexible Payment Terms: Potential for extended payment terms (e.g., Net 30, Net 45) on a case-by-case basis, subject to credit approval and established history.
- First Right of Refusal: Opportunity to be the first to stock certain exclusive or limited-run products in their area.
Understanding Purchasing Roles within Partner Organizations:
Recognizing the purchasing structure of our partners is crucial for tailoring our sales approach.
Job Specific Purchasers
These individuals are typically responsible for procurement within a specific category or for maintaining inventory levels. Decision-Making Capacity: These purchasers have significant autonomy to select products and make purchasing decisions within their allocated budget. Our sales approach should focus on product features, quality, and how our offerings directly address their inventory needs and customer demand.
Working for a National Corp Purchasing Budget
These purchasers operate within strict corporate guidelines and often have pre-approved vendor lists or centralized purchasing directives. Our strategy here involves understanding the corporate approval process, demonstrating how our products fit within their existing frameworks, and potentially engaging with higher-level corporate procurement if necessary. Emphasis should be on efficiency, compliance, and consistent supply.
Leadership Position Handling Ordering
These are typically owners, general managers, or lead buyers in smaller, independent operations. They often have a broader view of the business and are highly invested in its overall success. Vetting for Financial Viability & Relationship Consistency: For these partners, especially when considering higher tiers or extended payment terms, thorough vetting for financial viability is crucial. This includes credit checks, reviewing business history, and assessing their commitment to consistent, long-term partnership. The sales approach should be highly consultative, focusing on how our partnership contributes to their overall business growth, profitability, and market positioning. Building a strong, consistent relationship is paramount.
3. Sales Team Workflow – Daily, Weekly, Monthly, Quarterly Tasks
Effective account management is built on consistent, structured engagement. This section outlines key tasks to ensure optimal sales performance and partner satisfaction.
Daily Tasks
- Review Previous Day's Sales: Analyze sales data, identify any immediate order needs or issues from current partners.
- Follow-up on Open Inquiries/Quotes: Respond to all new inbound leads and follow up on pending quotes.
- Check Inventory Levels: Verify availability of popular products and potential low-stock items to inform outreach.
- Prioritize Outreach: Plan calls/emails for key accounts and new prospects based on immediate needs or opportunities.
- CRM Updates: Log all interactions, notes, and next steps in the Customer Relationship Management (CRM) system.
- Market News Scan: Briefly review industry news, competitor activities, and regulatory updates in NJ.
Weekly Tasks
- Pipeline Review & Forecasting: Assess sales pipeline, update forecasts, and identify potential roadblocks.
- Partner Check-ins (Top Tiers): Proactive calls/visits with Strategic Partners to discuss current performance and upcoming needs.
- Prospecting & New Lead Generation: Dedicate time to research and identify new potential dispensary partners.
- Order Reconciliation: Ensure all placed orders are progressing as planned and address any logistical issues.
- Product Knowledge Refresh: Review new product specs, COAs, and talking points.
- Performance Review: Self-assess against weekly sales goals and adjust strategies as needed.
Monthly Tasks
- Strategic Partner Performance Review (Internal): Deep dive into sales data for Strategic Partners, analyze trends, and prepare insights for Quarterly Business Reviews.
- Tier 2 Partner Growth Initiatives: Plan and execute specific initiatives to encourage Growth Partners to move to higher tiers (e.g., targeted promotions, new product introductions).
- Inventory Planning Input: Provide feedback to the inventory/production team based on sales trends and partner demand.
- Marketing Collaboration Sync: Coordinate with the marketing team on upcoming campaigns, promotions, and collateral needs.
- Expense & Reporting: Submit monthly expense reports and comprehensive sales performance reports.
- Competitive Analysis: In-depth review of competitor pricing, products, and market share in NJ.
- Review In-Month Performance & KPIs: Track and analyze:
- Total sales achieved.
- Average sales order value.
- Percentage of Tier 1 and Tier 2 partners placing orders.
- Number of new accounts opened.
- Stalled accounts that purchased in the previous month (re-engagement focus).
- Top margin accounts.
- Bottom margin accounts (identify areas for improvement).
- Top accounts by brand (identify brand-specific strengths/weaknesses).
- Reciprocal purchasing/selling relationships (evaluate mutual benefit).
Quarterly Tasks
- Quarterly Business Reviews (QBRs) with Strategic Partners: Conduct formal QBRs to review past performance, discuss market trends, align on future goals, and identify new collaboration opportunities.
- Full Pipeline Re-evaluation: Comprehensive review of all leads and opportunities, pruning inactive ones and refreshing strategies for active ones.
- Partner Tier Assessment: Review all current partners against tier criteria and adjust tiers as necessary, communicating changes clearly.
- Sales Strategy Workshop: Participate in internal workshops to refine sales strategies, share best practices, and develop new approaches.
- Regulatory Compliance Review: Ensure all sales and promotional activities remain fully compliant with the latest NJCRC regulations.
- Annual Planning Input: Provide input for the upcoming annual sales plan, including targets, strategies, and resource needs.
- Update Product Costing: Review and update the cost of goods sold for all products to reflect any changes in production, raw materials, or logistics.
- Review and Assign New Customer Tiers and Accounts by Team Member: Conduct a comprehensive review of all accounts, assign/reassign customer tiers based on performance, and distribute new accounts among team members for balanced workload and strategic alignment.
- Update Strain and Product Top Performing Brands and SKUs: Analyze sales data to identify and officially update the list of top-performing strains, products, brands, and individual SKUs, informing future sales focus and inventory planning.
4. Achievables Beyond Revenue
While revenue is paramount, successful partnerships yield valuable outcomes that extend beyond immediate sales figures. Tracking these 'achievables' demonstrates the holistic value of our sales efforts.
Data Insights & Market Intelligence
Achievable: Gathering valuable insights on product performance, consumer preferences, and competitor activities directly from dispensary partners.
How: Through consistent dialogue, specific inquiries during QBRs, and encouraging partners to share anonymized sales data (e.g., through our CRM integrations).
Impact: Informs product development, marketing strategies, and inventory management.
Brand Opportunities & Awareness
Achievable: Increasing brand visibility and positive perception within dispensaries and among their customer base.
How: Successful joint marketing campaigns, prominent placement in dispensaries, budtender education, and positive word-of-mouth.
Impact: Strengthens our market position and drives consumer demand.
Promotional Effectiveness
Achievable: Proving the success of our promotional strategies and optimizing future campaigns.
How: Tracking sell-through rates during promotions, collecting feedback from partners on campaign effectiveness, and analyzing resulting revenue uplifts.
Impact: Maximizes ROI on marketing spend and enhances partner profitability.
Collaborations & Strategic Alliances
Achievable: Identifying and executing mutually beneficial projects with partners (e.g., exclusive product drops, themed events, limited-edition bundles).
How: Proactive ideation during partner meetings, responsiveness to partner suggestions, and clear communication of mutual benefits.
Impact: Creates unique market differentiation and deeper partner loyalty.
Referrals & Network Expansion
Achievable: Gaining warm introductions to new dispensaries or key industry players through satisfied partners.
How: Delivering exceptional service, consistent product quality, and nurturing strong relationships that inspire advocacy.
Impact: Reduces customer acquisition costs and accelerates market penetration.
5. Navigating Sales Denials, Levers to Pull, & Promotional Strategies
Handling 'no' gracefully and strategically is a cornerstone of long-term sales success. This section outlines how to approach denials, the levers available to influence future sales, and specific promotional strategies.
Handling 'Nos' in the Sales Process:
A 'no' in sales is often just a 'not right now' or 'not yet.' When a sales call results in a denial, it's an opportunity to pivot, gather information, and strategically position for future engagement.
Seek to Understand the 'Why'
Action: Politely and professionally inquire about the specific reason for the denial. Avoid being pushy.
Example: "I understand you're not looking to bring on new vendors at this moment. Could you share what factors are influencing that decision, so I can better understand your current needs?' or 'Is it primarily due to current inventory levels, budget constraints, or are you satisfied with your existing vendor relationships?'"
Benefit: Understanding the underlying reason (e.g., overstocked, happy with current supplier, specific product need not met) allows for a more targeted and relevant follow-up strategy.
Maintain Professionalism and Leave the Door Open
Action: Always thank the vendor for their time, regardless of the outcome. Express understanding and a desire to connect in the future.
Example: "Thank you for your time and honesty. I appreciate you considering our products. I'd love to stay in touch for future opportunities."
Benefit: Leaves a positive impression, making them more receptive to future outreach.
Offer Value-Added Educational Outreach & Market Insights
Concept: Position your company as a knowledgeable resource within the NJ cannabis industry, independent of an immediate sale.
Action: Offer to send them relevant, non-sales-oriented market reports, trend analyses, or educational materials (e.g., 'A recent report on NJ consumer preferences for edibles,' 'Updates on upcoming NJCRC compliance changes,' 'Best practices for inventory management in a maturing market').
Benefit: Keeps the communication channel open without being overtly salesy. It demonstrates your expertise and willingness to provide value, increasing the likelihood they'll be receptive to future sales conversations.
Schedule a Future, Specific Check-in
Action: Instead of an open-ended 'I'll call you sometime,' ask for permission to follow up at a specific, agreed-upon future date.
Example: "I understand. Would it be appropriate for me to check back in late next quarter, perhaps around [Month/Date], when your inventory cycles might be different?'"
Benefit: Respects their current situation, sets a clear expectation, and ensures you have a legitimate reason to re-engage.
Levers to Pull (General Sales Influencers):
These are broad strategies to influence purchasing decisions throughout the sales cycle.
- Data-Driven Consultations: Leverage market intelligence to position products as solutions to their specific business challenges.
- Compliance & Quality Assurance Emphasis: Build trust by highlighting our rigorous adherence to NJCRC regulations and product integrity.
- Product Experience & Education: Allow buyers and budtenders to experience and learn about our products.
- Social Proof & Testimonials: Share success stories from other partners.
- Strategic Pricing & Discounts: Utilize tiered pricing and volume-based incentives.
- Flexible Payment Terms: Offer extended terms where appropriate for trusted partners.
- Bundling & Assortment Curation: Simplify ordering and encourage broader product adoption.
- Marketing & Promotional Support: Offer co-branded campaigns and collateral.
- Responsive Account Management: Provide proactive support and swift issue resolution.
- Inventory Optimization Guidance: Assist partners in maximizing their shelf space and reducing dead stock.
How to Construct a Deal (When List Price Isn't Working)
When a buyer suggests a promotion or price, or a deal isn't working at list price, it's crucial to approach it strategically. Your goal is to secure a profitable and sustainable deal for both parties.
Factors to Consider:
- Margin Analysis: Evaluate the margin by total invoice as well as by individual SKU, brand, and category. Understand where your flexibility lies.
- Market Impact: How will this deal impact the broader market and nearby partners? Avoid setting precedents that could devalue your products or upset other relationships.
- Future Implications: Consider the long-term sustainability and growth of the relationship. Is this deal a one-off or does it set a foundation for a consistently growing partnership?
Actions to Take:
- Take the Reigns: When a deal is on the table, take control. Present an offer to the buyer as opposed to simply fielding their requests. This positions you as the solution provider.
- Listen & Understand: Actively listen to their specific requests and understand *why* they are asking for the promotion. Are they trying to move specific inventory, attract new customers, or counter a competitor's offer?
- Utilize Margin Calculator: Always use your margin calculator to determine if their requests, or your proposed alternative, can make financial sense for us.
- Never Sell Below Cost: Under no circumstances should we sell products below cost. This is a fundamental principle.
- Position Overall Profitability: If there's a way to position an overall invoice as profitable, even if it means losing margin on a particular promotional SKU, it might make sense. For example: A store might request an aggressive price on gummies (low margin), which wouldn't be doable on its own, but if they are willing to take a couple of cases of live resin vapes and some flower (which have very favorable margins), there might be a reason to make that bundle deal work.
- Craft a Mutual Win: Set up a deal that works for us, creatively incorporating their requests to the extent that we can. Then, present this comprehensive offer to them for review.
- Involve Marketing/Brand Contact: It is highly beneficial to include our marketing and/or brand contact on that call. If they are receiving promoted B2B products, it's reasonable to assume they will be in a strong position to promote or feature those products B2C. Providing our marketing/brand support with the proposed offer can help facilitate the sale as well as help kick-start their sell-through.
Promotional Strategies (When a Direct Sale is Challenging):
These strategies are specifically designed for situations where a full wholesale order might be difficult to secure, often after an initial 'no' or due to inventory constraints at the dispensary.
Offer to Help Move Existing Inventory (Non-Competitive Advisory)
Concept: If the dispensary is overstocked, offer to share insights on effective promotional strategies that could help them move their existing inventory, even if it's from a competitor. This positions you as a helpful industry resource, building goodwill for future sales.
Action: "I understand you're currently focused on clearing existing stock. While we're keen to partner on our products, we've seen great success with certain compliant promotional mechanics in the NJ market, such as ['buy X, get Y at a discount' or 'limited-time flash sales']. If you're open to it, I could share some general insights on what's driving sales for other dispensaries, and perhaps we can revisit a partnership when your inventory levels are optimized."
Benefit:1 Demonstrates a truly partner-focused approach, building goodwill and trust without directly pushing your products. It keeps your brand top-of-mind for when they are ready for new inventory.
NJCRC Compliance: Ensure any advice on promotions strictly adheres to NJCRC advertising and sales regulations.
Propose 'Split Promotions' for Future Credits (Low-Risk Trial)
Concept: Offer a low-risk trial of a small selection of your SKUs. The dispensary runs a limited-time, compliant promotion on these items, and in return, they earn a credit towards a larger future wholesale order.
Action: "Given your current inventory, would you be open to a small, targeted trial? We could provide a limited quantity of [Specific Product A] and [Specific Product B] for a two-week promotional period. If you achieve a pre-agreed sales target on these items, we'd offer you a [e.g., $X credit or Y% discount] on your next wholesale order of Z units/dollars. This allows you to test market demand for our products with minimal upfront commitment and see the sell-through."
Benefit: Reduces the dispensary's perceived risk, provides them with a direct incentive, and allows them to see the sell-through potential of your products firsthand. It provides you with valuable real-world sales data for specific SKUs in that location.
NJCRC Compliance: All promotional mechanics must be fully compliant with NJCRC regulations regarding pricing, advertising, and sales.