merch magic
In the world of retail, dispensaries are always looking for new ways to drive revenue and build customer loyalty. Hoodies to rolling trays, branded merch does more than just make a quick sale—it helps your dispensary stay top-of-mind long after customers leave your store.
Branded Merch Matters
Branded merch is more than swag. It’s a powerful marketing tool. Every time a customer wears your hoodie or uses your grinder, they’re spreading awareness of your brand. It’s a walking endorsement that is a new stream of revenue that’s not subject to the same restrictions as cannabis products, giving you more flexibility and profit potential. We have heard in some states that merch just doesn’t sell, but is very powerful when given away at promo events or pop ups.
How merch works with zero effort from you:
- Brand visibility outside your dispensary
- Brand loyalty and customer connection
- Skirts strict marketing regulations
Best-Selling Types of Branded Cannabis Merchandise
Some merch items consistently outperform others due to their practicality, price point, and style appeal. Here are the top categories that move fast and make an impression:
Apparel
- T-shirts & Hoodies: Wearable billboards for your brand
- Hats & Beanies: Options that cater to all demographics
- Limited Drops: Seasonal or collab pieces
Accessories
- Rolling Trays & Grinders: Functional items that reinforce your brand during daily use
- Lighters & Stash Jars: Small, easy-to-carry merchandise with big branding impact
Lifestyle Minis
- Smell-Proof Bags & Cases: Great for bundling with products
- Stickers, Pins, Patches: Low-cost, high-margin impulse buys
- Branded Tech: Think USB lighters or mini speakers with your brand logo
Tax Benefits
Branded merchandise offers more than just branding—it can also help with your bottom line through smart tax strategies. I’m not an accountant, but yours will be able to help you with a viable strategy.
IRC 280E Because of federal tax code IRC 280E, cannabis businesses can’t deduct normal business expenses related to cannabis sales. However, merchandise falls outside this scope.
Perks:
- Merchandise revenue qualifies as non-280E income
- You can also allocate shared overhead expenses (rent, utilities, staff) proportionally to your merch
- Reducse overall taxable income
*Keep cannabis and non-cannabis inventory and accounting separate to stay compliant and max deductions.
3 Ways to Display Branded Merchandise in Your Retail Store
Merch only sells if it’s seen and desired. Strategic placement in your dispensary can make all the difference.
Feature Wall or Branded Display Section
Create a dedicated area with shelving and branded signage. Giving your merch the attention it deserves will encourage customers to browse while they wait.
Point-of-Sale Merch Bins
Place smaller items—like lighters, stickers, and pins near the checkout area.These make perfect sales add-ons. Customers are used to this, gum & chapstick at the grocery store.
Integrated Displays
Incorporate your merchandise into vignettes. For example, display a hoodie, rolling tray, and grinder together with a pre-roll pack to show how everything works as a cohesive lifestyle bundle. Your fave clothing stores do this in reverse, selling everything from candles to books near like-styled items.
Boosting Merch Sales
- Train your team to upsell merch during customer interactions
- Use a loyalty program to give branded items as bonus rewards
- Run limited-time or seasonal promos (“Spend $100, get a free tee”)
Sell online to reach fans outside your local area
Branded cannabis merchandise is more than just a side sale- it’s a playbook strategy. Picking the right merch, displaying it intentionally and a little tax planning,merch will build loyalty, boost visibility, and grow your bottom line.
Whether it’s a tote, tray, or a premium hoodie, make sure your brand is front and center.
Let your brand do the talking.
Links to a few of our faves
https://www.buyweedfromwomen.com/bwfw-shop/bwfw-tradition-coachs-jacket
https://papersandink.com/products/custom-printed-paper
https://theflowerpot.co/collections/weed-stash-boxes
https://boysmells.com/collections/candles/products/cowboy-kush-candle-9oz
https://paperpuffin.com/collections/tote-bags/products/cannabis-cat-tote-bag-limited-edition-color
https://www.faire.com/product/p_gyzgtfyjxa
https://anthembranding.com/case-studies/beboe/beboe-temporary-tattoos
