Flat Pricing vs. Marketplace Commission: What Dispensaries Should Compare

When you evaluate ecommerce software, the monthly price is only part of the story.

Some platforms charge a flat monthly amount. Others charge a percentage of online sales, sometimes called a commission, transaction fee, or sales-based fee. Some use a combination of both.

The right model depends on what you receive, how much you sell online, and how predictable you need your costs to be. Every dispensary should understand the math before signing.

What is flat pricing?

Flat pricing means you pay an agreed monthly or annual amount for software. The fee may vary by location, number of users, plan level, or included features. It does not rise simply because your store sells more cannabis.

For example:

$400 per month x 12 months = $4,800 per year

Your costs may still change if you add locations or optional services, but the price is not tied to your store's sales volume.

What is a sales-based fee?

A sales-based fee is calculated as a percentage of online sales. For example:

$500,000 in annual online sales x 3% = $15,000 in annual fees

This model can feel attractive when a store is small or getting started because the initial cost may be lower. But as online sales grow, the fee grows too.

That is not automatically unfair. A percentage model may include valuable services, marketing reach, payment functionality, or other capabilities. The important thing is to know exactly what you are paying for and whether the economics still make sense at your expected scale.

The math at different sales volumes

Here is a simple illustration. It compares a hypothetical $400-per-month flat plan with hypothetical 3% and 6% sales-based fees.

This is an illustration, not a quote from any specific provider. It does not include setup, payment, support, or agency fees. It shows the key difference: flat pricing is predictable, while a sales-based fee rises with your success.

Find your break-even point

You can calculate the point where a flat fee and a percentage fee cost the same:

Annual flat fee / percentage fee = break-even online sales

For a $4,800 annual flat fee:

• At 3%, the break-even point is $160,000 in annual online sales.
• At 6%, the break-even point is $80,000 in annual online sales.

If your online sales are above that number, the flat fee costs less in this simplified example. If they are below it, the percentage fee may cost less, before other costs are included.

Look beyond the fee model

A good comparison includes more than math. Ask:

• Does the platform charge setup, migration, or support fees?
• Is there a minimum contract length or renewal increase?
• Are payment fees separate?
• Are delivery, loyalty, text messaging, or analytics sold as add-ons?
• Will you need an agency or developer to maintain the site?
• Can you export your data if you leave?
• Does the fee increase when you add locations, users, products, or order volume?
• Are you paying for marketplace exposure, software, payments, or all three?

A platform can be worthwhile even if it is not the cheapest option. The problem is not paying for value. The problem is paying a fee structure you did not fully understand.

The strategic question: does the vendor win when you win?

With a flat-fee model, the software provider earns a predictable amount while your store keeps the benefit of growth. With a percentage-based model, the provider earns more as your online sales increase. That can align incentives in some cases, but it can also become expensive if the platform's contribution to each additional sale is unclear.

For a growing dispensary, predictable technology costs make planning easier. You can invest additional revenue in staff, inventory, local marketing, store improvements, or other priorities instead of watching your software bill grow automatically.

Bower's software model is flat-fee by design: $349 per month, plus a one-time $750 setup fee per location. Pricing is not tied to a retailer's sales volume. The goal is simple: your software bill should not increase just because your store is doing well.