Small Business Tool Kit
CDM Tools: Business Management for Retail
Effective problem-solving and management in a cannabis retail environment comes down to using the right tools at the right time. These CDM tools can help you diagnose issues, streamline operations, and make smarter business decisions. Let’s dive into each tool using real-world scenarios.
1. Opportunity Statements
Don’t be vague. If your store’s layout sucks, say that. The more clearly you define a problem, the faster you can fix it. An opportunity statement concisely defines the issue, and provides a proposed solution without trying to solve it right away.
Scenario:
Your sales data shows that Edible sales are lagging behind other product categories. You’ve noticed med-patients are asking budtenders where to find the Medical Edibles more often than any other product.
Opportunity Statement:
“Customers can’t find the Medical Edibles section without help. This is causing frustration and slowing down the sales process.”
Solution:
Install a slate wall specifically for Medical Edibles near the entrance or in a high-traffic area, so they’re prominently displayed. Make the section visually distinctive, perhaps with neon signage or specific lighting.
2. The Five Whys
To get to the root of a problem, ask "why" multiple times until the core issue is uncovered. Surface-level symptoms often mask deeper issues, so keep digging.
Scenario:
Sales are down in your store, and customers are leaving without making a purchase. Budtenders seem flustered when helping customers.
The Five Whys:
Why are sales down?
Because fewer customers are completing purchases.Why are customers not completing purchases?
Because they aren’t finding what they’re looking for quickly.Why aren’t they finding what they’re looking for?
Because budtenders are taking too long to recommend products.Why are budtenders taking too long?
Because they aren’t confident about the details of new products.Why aren’t they confident?
Because there’s been a lack of consistent product training.
Solution: Implement regular product knowledge sessions to get your staff up to speed. Make sure they’re comfortable recommending products, especially new arrivals or niche items.
3. Voice of the Customer (VOC) Translation
Customers often express frustrations or desires without being very specific. It’s your job to translate these vague comments into actionable items for improvement.
Scenario:
You receive frequent feedback like, “We wish you had better options” or “There’s nothing new here.”
VOC Translation:
These general complaints translate into:
“We need more mid-range flower options at different price points.” Customers are likely looking for a wider variety of quality products that don’t break the bank.
Solution: Expand your mid-range flower selection. Bring in some popular, mid-tier strains and price them competitively. Highlight these new products in your marketing and in-store displays.
4. Affinity Diagrams
When you collect feedback from multiple customers, it can be overwhelming. Affinity diagrams help you organize that information into themes, so you can clearly see the most common issues and focus on fixing them.
Scenario:
You’ve gathered a ton of customer feedback over the past month. Some complain about long wait times at the register, others about lack of product variety, and a few mention poor customer service.
Affinity Diagram:
Theme 1: Product Availability
Lack of concentrate options
Not enough edibles on sale
Theme 2: Customer Service
Budtenders not knowledgeable
Long wait times for assistance
Theme 3: Store Layout
Hard to find products
Crowded checkout line
Solution: Focus first on the most common complaints. If product availability and store layout are causing the biggest headaches, prioritize fixing these areas before moving on to smaller issues.
5. Waste Walks
Take a literal or virtual walk through your store’s daily operations and look for any inefficiencies. These could be time-wasting processes, cluttered spaces, or anything that doesn’t add value.
Scenario:
Your staff is constantly running back and forth from the storage room to the sales floor to grab products during busy hours.
Waste Walk Findings:
Overstock: You have way too much inventory cluttering the back room, making it hard for staff to quickly find what they need.
Inefficient layout: The storage area is disorganized, forcing employees to waste time searching for specific items.
Solution: Reorganize the storage area to make high-demand products easily accessible. Implement a labeling system and declutter to free up space. This simple change will save time, improve staff efficiency, and reduce customer wait times.
6. Checklists
When you have a store to manage, keeping track of every small task can get chaotic. A simple checklist ensures that everything gets done—whether it’s prepping for a major event, restocking the sales floor, or closing out the register. It also comes in handy for the day you have to miss and your lead says to the crew “…is that everything?” - take the guess work out, leave a list.
Scenario:
You’re prepping for 4/20, the biggest day of the year for cannabis sales, and you need to ensure that your team is fully prepared for the rush.
Checklist Example:
Check inventory levels for top-selling products
Reorganize the sales floor for smoother customer flow
Prep the registers with extra cash
Set up a designated promotional area for discounts
Train budtenders on the 4/20 special deals
Ensure in-store signage is ready to go
Solution: Each of these tasks is critical for 4/20 success. Without a checklist, something will inevitably slip through the cracks. With one, you can ensure everyone’s ready for the big day.
7. Cost-Benefit Analysis
Before making a significant change—like introducing a new product line or investing in better store equipment—you need to weigh the costs against the potential benefits. Will the investment pay off, or will it end up costing you more in the long run?
Scenario:
You’re considering revamping your entire storage vault to allow for more efficient deliveries. Right now, your door is too narrow to accommodate standard pallets, so deliveries have to be broken down by hand.
Cost-Benefit Analysis:
Cost: Widening the door and improving the storage vault will cost $5,000 upfront, delaying operations for a few days.
Benefit: You’ll save hours of labor each week by being able to wheel pallets directly into storage, cutting down on inefficiencies and labor costs over time.
Solution: Initially, the Operations Manager doesn’t want to spend the money, but after a year of manual labor slowing down processes, the company ends up losing much more than $5,000 in wasted time. Lesson: Pay now, or pay more later. Investing in infrastructure now saves you big headaches later on.
By using these CDM tools in your cannabis retail business, you can systematically tackle challenges, improve operations, and ensure you're running an efficient, customer-friendly shop that stays ahead of the competition.