At a Glance
- Every cannabis consignment agreement covers splits, shrinkage, discounts, and payment timing
- You and the vendor set the contract terms; the platform configures them per vendor and applies them every settlement
- Terms are configured per vendor and per category in ShelfSpace
- Changes to terms are logged and take effect on the next settlement cycle
What a Cannabis Consignment Agreement Covers
Every cannabis consignment agreement defines the financial relationship between your dispensary and a vendor. You and the vendor set the terms; the platform applies them to every settlement. No contract is active until you and the vendor agree.
The contract isn't a static PDF that sits in a drawer. It's a living configuration inside ShelfSpace that directly controls how weekly settlements are calculated. When terms change, the platform reflects those changes starting with the next cycle.
Key Terms in Every Contract
Category-level profit splits. Each product category (flower, concentrates, edibles, etc.) gets its own vendor/retailer revenue split. A vendor might receive 60% on flower but 55% on edibles. See profit splits for how these work in practice.
Aging discount thresholds. Contracts define how long product can sit before markdowns apply. For example, flower might trigger a 10% aging discount after 30 days and 25% after 60 days. These tiers protect you from slow-moving inventory. See aging discounts for details.
Shrinkage and loss terms. The contract specifies who bears the cost of shrinkage — theft, damage, or miscounts. Typically the vendor absorbs shrinkage on consigned goods, but this is negotiable.
Discount authorization. If your store runs a promotion on a vendor's product, the contract determines whether that discount comes from the vendor's share, the retailer's share, or is split between both. Many retailers negotiate vendor-funded discount budgets through credit recovery.
Payment timing. Settlements run on the cadence you set per vendor — weekly by default, or biweekly/monthly. The contract confirms the cadence, the cutoff day, and the expected delivery window for checks.
How Contracts Get Set Up
During onboarding, you set your preferred split percentages and any special terms for specific vendors, and the platform applies them to every settlement — the agreed category splits, aging tiers, and payment terms.
The vendor receives a portal invitation and can review their terms online. Both sides can propose changes through a negotiation log that tracks every revision. Once both parties accept, the terms lock in and settlements begin.
Updating Terms Later
Renegotiating is straightforward. Either side can request a change, and the platform updates the configuration after both parties confirm. Every change is logged with a timestamp, and the new terms apply starting with the next settlement period. Historical settlements are never retroactively recalculated — the old terms stay on the record. Visit our consignment service page for more on the overall model.