A recent StrattCann article speculated most sales happen below the market average prices we display. With regards to the top selling products in the market we expect this is true; the average price that an arbitrary unit of inventory is sold at is likely lower than the average price of all available listings.  In other words all because a high price listing exists doesn’t mean individual units can be sold at that price, bringing the average price of a sold unit below that of the average asking price of all listed units, the later of which being what we tracked and analyzed for the analysis of top selling products mentioned above.

Here we will investigate this relationship using the largest section of the market; whole flower dried cannabis in the 3.5 gram package size.

Average Selling Price

We’ve calculated the average price of observed sell-through and plotted the moving average over the past 4 weeks (orange), which is shown on the same chart as the market average prices (blue). On average, the selling price is $3.00 less than the displayed price, or about $0.86 per gram for this package size.

Price Segments with High Absorption

Next we look for the segment of highest sell-through.

Looking only at SKUs with observable sell-through, we’ve calculated the % of total sell-through for each price point.  Mean selling price and the area bounded by one standard deviation on either side of said mean are also displayed.

The grey band bound by one stanard deviation above and below the mean represents price points where the majority of product is sold.  Below we have allocated sell-through into defined price segments and calculated the amount of sell-through that happens within each.

Histogram of Total Sell-Through

To zone in on most active price segments, we’ve arranged all price points into $2 buckets and we’re looking at the % of total sell-through for each.

The average for the group is 2.9% of total sell-through. Thirteen of 34 segments are above the average value, representing 86.8% of total sell-through.

Percent of Total Sell-Through

Looking closer at the most active price segments now, we’re showing % sell-through by radius of each circle with % sales by colour.

There are notable differences in sales between brackets. For instance, both $22 and $34 brackets have similar sell-through values (within 0.2%). The $22 bracket represents 6.6% of the total sales value, while the $34 brand represents 9.6% of sales.

Percent of Total Sell-Through

To get a better idea of the relationship between price segment and sales, we’ve plotted the % of total sales and sell-through for each $2 price segment.

Few observations on this version of the report:

  • The $34 segment has the most sales and most sell-through
    • Products priced within the $32 and $28 segments have less sell-through and less sales than the $34 price segment.
  • $22 is an area of high absorbance within the $20-$30 segment
    • Sell-through drops greatly after the $20 segment
    • Sell-through increases moving from $26 to $22, but sales do not.
      • When dropping the price of a 3.5g package priced $30+, a vendor should consider dropping to $28 before $22.
  • 70% of sales is observed in segments $20 to $38.
  • 31% of total sales is observed in segments $20 to $28.
  • 15% of sales is observed in segments $40 to $48.
  • 7% of sales is observed in segments $50 to $58.
Percent of Total Sell-Through

Now that we’ve identified areas of peak sales, let’s take a look at the composition of the segment by brand. We’ve shown the top 30 price segments by sell-through on the left below. On right is a list of all brands within that segment, shown according to the number of SKUs they list per store, per day.

We show the top portion of brand composition overall, and for each of the top 5 price segments. 

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