Why Retailers Must Slow Down and Buy Smart This Croptober
IT’S CROPTOBER — DON’T FALL IN THE TRAP!
Suppliers are pushing inventory: “BUY! BUY! BUY!”
Retailers need to be prepared to say:
“HOLD UP — I CAN’T PAY FOR THIS IN 37 DAYS.”
As the new OCM credit and COD requirements take effect, New York cannabis retailers are facing increased pressure to carefully manage inventory, purchasing, and cash flow. During Croptober, suppliers may be aggressively encouraging retailers to purchase larger quantities through volume discounts, special pricing, and limited-time deals.
Retailers cannot allow attractive pricing to turn into over-inventory, unpaid invoices, and COD problems.
The expectations being placed on retailers do not reflect the financial realities of operating a licensed cannabis dispensary in New York. Retailers need enough flexibility to manage inventory responsibly while maintaining productive business relationships with the suppliers and brands they depend on.
THE RISK: OVERBUYING CAN PUT YOUR BUSINESS ON THE COD LIST
Retailers need to understand the potential consequences before placing large inventory orders.
- Suppliers may be pushing large orders, bulk discounts, and limited-time Croptober deals.
- Retailers need to evaluate whether an invoice can realistically be paid within the required timeframe—not simply whether the deal looks good today.
- Delinquent invoices can ultimately result in a retailer being placed on the COD list.
- COD restrictions can disrupt inventory access, working capital, purchasing flexibility, and supplier relationships.
- Retailers should not assume future sales will generate enough cash to cover today’s oversized purchase orders.
A discount isn’t a deal if you can’t pay the invoice when it comes due.
NYCRA’S INVENTORY STRATEGY
1. SLOW DOWN PURCHASING
Do not buy inventory simply because a supplier is offering a large discount.
Purchase what your business can realistically sell and pay for within the applicable payment period.
2. MANAGE CASH FLOW
Every purchase order should be evaluated against realistic sales projections, existing accounts payable, payroll, taxes, rent, operating expenses, and other upcoming obligations.
Protect cash first.
3. PRIORITIZE CORE PRODUCTS
Focus purchasing on products and categories that consistently sell.
Croptober is not the time to fill shelves with speculative inventory simply because the wholesale price looks attractive.
Inventory sitting on a shelf does not pay an invoice.
4. PROTECT BUSINESS RELATIONSHIPS
Retailers and suppliers should be able to negotiate business relationships based on their individual circumstances.
Communicate with suppliers about purchasing expectations, payment capabilities, inventory movement, and realistic terms.
The State should encourage these relationships—not interfere with them unnecessarily.
TO OCM: THESE ARE UNREALISTIC EXPECTATIONS
NYCRA is asking the Office of Cannabis Management and Cannabis Control Board to recognize the financial realities facing New York’s licensed retailers.
A regulatory structure that effectively forces retailers and suppliers into rigid payment timelines can create unintended consequences throughout the entire supply chain.
OCM cannot regulate cash flow into existence.
A retailer may be operating a legitimate, growing business and still need more time to sell through inventory before paying a large wholesale invoice. That does not automatically mean the retailer is financially irresponsible or that the supplier-retailer relationship is failing.
During Croptober, this problem becomes even more significant. Suppliers need to move product, retailers are presented with aggressive purchasing opportunities, and the market can become flooded with inventory.
At the same time, retailers are being told:
Buy inventory—but make absolutely certain you can turn that inventory into enough cash to satisfy the required payment timeline.
That expectation does not reflect how retail businesses actually operate.
WHAT NYCRA IS ASKING OCM TO DO
NYCRA is asking OCM and the Cannabis Control Board to:
- Provide greater transparency regarding the COD list, reporting process, timelines, and removal procedures.
- Reevaluate whether the current payment and reporting structure reflects the realities of New York’s developing cannabis market.
- Allow suppliers and retailers greater flexibility to establish reasonable payment terms between themselves.
- Establish meaningful safeguards for payment disputes, reporting errors, verification, and timely corrections before a retailer suffers serious business consequences.
- Work directly with licensed retailers, suppliers, and industry stakeholders before implementing policies that materially affect working capital and existing business relationships.
DON’T FALL IN THE TRAP
Retailers should not allow Croptober excitement, wholesale discounts, supplier pressure, or fear of missing out to determine purchasing decisions.
BUY SMART.
CONTROL INVENTORY.
PROTECT CASH FLOW.
PAY YOUR BILLS.
PROTECT YOUR BUSINESS RELATIONSHIPS.
STAY OFF THE COD LIST.
New York needs a cannabis marketplace where suppliers can sell product, retailers can responsibly purchase inventory, and both sides can negotiate sustainable business relationships.
OCM: Give the industry transparency, realistic expectations, and the ability to conduct business. Stop getting in the way of legitimate supplier-retailer relationships.