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How Often Should a NY Dispensary Reorder Product?
How often should a NY cannabis dispensary reorder? This guide shows a simple reorder system based on sales velocity, lead times, and cash limits, explains New York’s 30 day wholesale credit reality and the OCM delinquent payment (COD) risk, and gives practical reorder rules that prevent overbuying and cash crunches.
What This Page Covers
- The simplest way to decide reorder timing
- Sales velocity, lead time, and safety stock
- The New York 30 day credit reality and why it changes reorder math
- Minimum order pressure and how it tricks operators into overbuying
- Cash buffer math so you do not reorder your way into delinquent payments
- A practical reorder model you can run weekly
The Rule Most NY Operators Learn Too Late
You do not reorder based on what you want on the shelf. You reorder based on what you can sell before the invoice is due.
In New York adult use wholesale, credit terms are tightly constrained and vendors expect to be paid fast. If your reorder quantity will not mostly sell through inside the payment window, the reorder is not “inventory planning.” It is a cash problem you are creating on purpose.
Step 1: Start With Sales Velocity (The Only Number That Matters)
Sales velocity means: how many units you sell per day of a specific product.
Use any POS view that shows units sold by day or week.
Practical velocity buckets (simple)
- A movers: sells daily or multiple times per day
- B movers: sells weekly
- C movers: sells occasionally
- D movers: dead inventory risk
Your reorder frequency should be different for each bucket.
Step 2: Know Your Lead Time (How Long It Takes to Restock)
Lead time is the time between:
- placing the order, and
- product being sellable on the shelf
In real dispensary life, lead time includes more than delivery:
- vendor processing time
- transport scheduling
- intake and receiving
- METRC receiving steps
- pricing, labeling, shelving, menu updates
If it takes you 7 days from “order placed” to “ready to sell,” your reorder system needs to treat lead time as 7 days, not 2.
Step 3: Use a Simple Reorder Point (No Spreadsheet Needed)
For each SKU, set a reorder point using this plain rule:
Reorder Point
Reorder when you have: lead time demand + safety stock
Where:
- lead time demand = (units sold per day) × (lead time days)
- safety stock = a small cushion for surprises
Example (fast moving vape)
- sells 4 units per day
- lead time is 7 days
- safety stock is 7 units
Lead time demand = 4 × 7 = 28
Reorder point = 28 + 7 = 35 units
Meaning: when you hit 35 units on hand, you reorder.
This prevents stockouts without forcing you to “guess” based on vibes.
The NY Problem: The 30 Day Payment Window Changes Everything
New York’s adult use market rules include a 30 day limit on credit that distributors may extend to retailers.
That means your reorder plan must answer one question:
“Will most of this reorder sell before day 30?”
If your sell through is slower than the payment window, you create a predictable chain reaction:
- invoice comes due before cash is collected
- you stall payments or juggle invoices
- vendors tighten terms
- you risk delinquent payment reporting and COD restrictions
- your inventory flow gets worse, not better
The common trap
Operators reorder based on shelf fullness, not payment timing.
Then they are surprised when “a great sales month” still ends in a cash panic.
Step 4: Match Reorder Frequency to Product Speed
Here is a simple, operator grade cadence.
A movers: reorder weekly
These are products that sell every day. Weekly reorders keep the shelf stable without building a cash mountain.
B movers: reorder every two weeks
These sell consistently but not daily. Biweekly reorders reduce cash trap risk.
C movers: reorder monthly or only after sell through
Monthly is often too frequent for slow products. Many operators should reorder slow items only when they hit a real reorder point.
D movers: do not reorder until you fix the problem
Dead inventory is not a reorder category. It is a decision category: discount, bundle, stop buying, or return if possible.
Minimum Order Pressure: The Silent Cash Killer
Many brands and distributors push minimums like:
- “You need 10 cases”
- “You need the full menu set”
- “You need a bigger order to get the price”
Minimums are not your friend if your sell through does not match your payment window.
What to do instead
- Start with a smaller test order tied to velocity
- Ask for split drops (same invoice, staged delivery) only if the vendor allows it
- Ask for smaller MOQ based on sell through proof
- Do not let a “deal” create an invoice you cannot clear in 30 days
If a lower price requires a larger buy that you cannot sell fast, it is not a deal. It is a future payment crisis.
Cash Buffer Math (So You Stop Reordering Blind)
Your reorder plan must respect what your bank account can survive.
The simple rule
Never let upcoming inventory invoices exceed your predictable cash after payroll and rent.
If you want a clean weekly check, track these three numbers:
- cash in bank today
- cash needed for payroll and payroll taxes before the next pay date
- cash needed for rent and fixed bills before the next rent due date
What is left is your safe inventory pay capacity.
Practical example (simple numbers)
Monthly sales: $500,000
COGS: 60% (so inventory cost is about $300,000 per month)
That is about $75,000 per week in inventory cost.
If you reorder $110,000 this week because “we are growing,” but your predictable cash after payroll and rent can only safely support $70,000, you just created a shortfall that shows up at day 30.
This is how good stores end up on payment restriction systems: not fraud, just bad reorder math.
A Weekly Reorder Routine That Works in Real Life
Do this once a week, same day, same time.
1) Pull a 14 day sales report by SKU
Focus on units sold, not just dollars.
2) Flag A movers and stockout risks
Anything with less than lead time demand should be reviewed immediately.
3) Check payables due in the next 30 days
Before you place new orders, look at what is already coming due.
4) Place orders only for products that can sell through inside the payment window
If the product will not move, you are borrowing from your future.
5) Cap reorders to your safe cash capacity
If cash is tight, reorder your highest velocity and highest reliability SKUs first.
Common Reorder Mistakes That Wreck NY Operators
Reordering based on how the shelf looks
Shelf fullness is not a financial plan.
Reordering slow products because a rep is pushy
Reps do not pay your invoices.
Treating discounts like free money
Discounting reduces realized price, which reduces cash available to pay invoices.
Adding new SKUs without removing old ones
SKU bloat increases inventory days on hand, which increases cash trapped in product.
Ignoring the 30 day payment reality
If your inventory takes 45 to 60 days to sell, but payment is due inside 30, your reorder plan must change or you will eventually break.
FAQ
How often do most NY dispensaries reorder?
Fast movers are commonly reordered weekly. Slower categories are often biweekly or monthly. The right answer depends on lead time and whether the reorder quantity can sell through before the invoice is due.
Should I reorder more often to avoid stockouts?
Only if you also keep order sizes small. Frequent ordering with large orders is how operators trap cash.
What is the safest first step if I feel behind?
Stop reordering slow SKUs, tighten buying to your top velocity products, and review invoices due inside the next 30 days before placing any new orders.
Source Material
- New York State Cannabis Market Rules, Section 124.2 Terms of Sale (includes 30 day credit limit and COD delinquency list).
