"Out-the-door" (OTD) pricing is the process of including all relevant taxes or additional charges in the final cost of a product sold at a dispensary. The price a customer sees is the total price they pay. Out-the-door pricing is sometimes referred to as "tax-inclusive" pricing.
Flowhub Maui allows you to easily use out-the-door pricing. When the "Out the Door Pricing" setting is enabled for your dispensary, you can enter the price you would like items to be "out-the-door" and see your margins and pre-tax prices within your inventory. Flowhub automatically reverse calculates the pre-tax price so the correct tax amount is built into every price at checkout.
Watch the video below to learn more about out the door pricing:
Using Out the Door Pricing
When Out the Door Pricing is enabled, all Price fields in Maui on Products and Price Profiles will indicate they are "OTD Prices."
If OTD Pricing is not enabled for your dispensary, all Price fields in Maui will be labeled as "Default Price" instead of "Default OTD Price".
In the below Product example, the Out the Door Price will be $40 for the customer and they will pay exactly $40 at checkout with the taxes included. Flowhub Maui will calculate the pre-tax subtotal for you when the item is added to the cart.
In the below Price Profile example, all Prices are Out the Door prices:
At Checkout, Maui will calculate the pre-tax price with the tax rate in order to achieve the OTD Price, so your customers are still paying the appropriate taxes. In the below example, the OTD price is $40. The Subtotal, calculated by Maui, is $34.19 and the Taxes are $5.81. Customer pays exactly $40 "out the door."
Managing Out the Door Pricing For Recreational Customers vs Medical Customers With Different Tax Rates
In some states (Oregon), Medical and Recreational customers can purchase the same products, but the tax rates differ based on the customer type. In this situation, you will want to make sure that you set up unique OTD price sets for Recreational customers and Medical customers on products that both customer types can purchase.
See the example below where the Inventory Type on the Product is "Both". Let's assume there's a 20% tax rate for Recreational Customers only, and Medical customers don't pay taxes on this product.
As the product is currently set up as "Both" - what will happen at checkout is:
The Medical customer has no taxes to pay. At checkout, the Med customer will have a subtotal of $10 and pay $10.
The Recreational customer must pay 20% recreational cannabis tax. At checkout, the Rec customer will have a subtotal of $8.33 (calculated by Flowhub) and pay $10.
The Recreational customer is technically paying less for the product due to the need to calculate the 20% taxes for the OTD price at checkout.
This can be managed by setting up unique Med and Rec price sets on the product by changing the "Inventory Type" from "Both."
In the below example - the user has factored in the additional 20% tax for the Recreational customer's Out the Door price:
As the product is now set up with unique price sets for Rec and Med customers - what will happen at checkout is:
The Medical customer has no taxes to pay. At checkout, the Med customer will have a subtotal of $10 and pay $10.
The Recreational customer must pay 20% recreational cannabis tax. At checkout, the Rec customer will have a subtotal of $10 (calculated by Flowhub) and pay $12.
Enabling Out the Door Pricing
Please contact the Flowhub Product Support team or other Flowhub team members to request that the Out the Door Pricing setting be enabled for your store(s).
You will need to have your Employees log out of Maui and back in for the change to take effect in your environment.
You will need to update the Prices on your Products and Price Profiles to add new Out the Door prices.
Then, you will see Out the Door Pricing at checkout.
Updating Prices on Products When OTD Price Settings are Enabled
A dispensary may choose to enable their Out the Door Pricing setting by contacting Flowhub Product Support.
Enabling (or Disabling) Out the Door Pricing will have no disruption to your ability to make sales. At checkout, your prices will continue to reference the previous standard price, which will be displayed on the Product as the "OTD Price" until a new Pre-Tax Price is entered.
In the below example, this dispensary previously had Standard pricing, and then requested that Out the Door Pricing be enabled. The Previous Pre-Tax (Standard) Price is currently still being used on the Product at checkout.
When a new Default Price is added and the Product is saved, the Previous Pre-Tax (Standard) Price will disappear and the new pre-tax Default Price will be used at checkout going forward.
At Checkout, the subtotal will reference the pre-tax price, and add the taxes on top of that. In the below example, the pre-tax price on the product is $18.93, the taxes are $6.07, and the customer pays $25.00.
Updating Prices on Products When OTD Price Settings are Disabled
A dispensary may choose to disable their Out the Door Pricing setting by contacting Flowhub Product Support.
You will need to have your Employees log out of Maui and back in for the change to take effect in your environment.
You will need to update the Prices on your Products and Price Profiles to add new Pre-Tax prices.
Then, you will see Standard pricing at checkout.
Disabling (or Enabling) Out the Door Pricing will have no disruption to your ability to make sales. At checkout, your prices will continue to reference the previous Out the Door price, which will be displayed on the Product as the "Previous Post-Tax (OTD Price" until a new Pre-Tax Price is entered.
In the below example, this dispensary previously had Out the Door pricing enabled, and then requested that it be disabled. The Previous Post-Tax (OTD) Price is currently still being used on the Product at checkout.
When a new Default Price is added and the Product is saved, the Previous Post-Tax (OTD) Price will disappear and the new pre-tax Default Price will be used at checkout going forward.
At Checkout, the subtotal will reference the pre-tax price, and add the taxes on top of that. In the below example, the pre-tax price on the product is $38, the taxes are $6.46, and the customer pays $44.46.
