For Brands | July 15, 2024

Resolving 5 Problems with Payment on Sell-Through

As the wholesale cannabis market continues to evolve, staying ahead of the curve is crucial for success. One of the most significant advancements for cannabis brands is LeafLink’sPayment on Sell-Through (PoST). Leveraging PoST can transform sales strategies, simplify business operations, and drive profitability. This blog delves into using PoST in practical business scenarios to optimize wholesale cannabis payments and elevate your brand’s performance.

1. Sell More Effectively to Retail Partners

Problem: Stockouts and stale inventory can hurt your brand promise and sales performance.

✔️ Solution: PoST provides daily sell-through visibility at store and SKU levels. This data empowers your sales team to avoid pushing products that won’t move and proactively initiate re-orders to prevent stockouts. With PoST, you can ensure that your retail partners always have the right amount of inventory, maintaining a consistent brand presence and customer satisfaction.

2. Secure Shelf Space for New Brands or Products

❌ Problem: Gaining access to shelf space as a new brand or with a new, unproven product can be challenging.

✔️ Solution: PoST eliminates the financial risk for retailers by allowing them to stock your products without upfront payment. This reduction in risk makes retailers more likely to agree to carry your new brand or product. By using PoST, you can increase your chances of securing shelf space and introducing your offerings to a broader audience.

3. Expand to Additional Retail Stores

❌ Problem: Expanding to new retail stores or continuing business with existing ones involves the risk of non-payment.

✔️ Solution: PoST confirms sell-through before collecting payment, ensuring that retailers have the funds to pay you. If a retailer fails to pay for some reason, the transaction is insured, protecting your business from financial loss. This assurance allows you to confidently expand your reach to new retail partners and grow your market presence without the fear of non-payment.

4. Automate Collections Processes

❌ Problem: Manual collections processes are time-consuming and inefficient, taking valuable time away from your team.

✔️ Solution: PoST automates the payment collection process, eliminating the need for manual reconciliation of orders and invoices. This automation frees up your team to focus on other critical tasks while ensuring you still get paid promptly. By reducing the administrative burden, PoST helps your business operate more efficiently and effectively.

5. Align Product Development with Market Demand

❌ Problem: Aligning your product development plans to consumer demand can be challenging without direct visibility.

✔️ Solution: PoST offers direct visibility into end consumer sell-through, providing valuable insights into market demand. This information allows you to better understand what products are in demand and adjust your production plans accordingly. By aligning your product development with market trends, you can ensure that your offerings meet consumer needs, driving sales and growth.

Six Labs implemented Payment on Sell-Through (PoST), resulting in a remarkable 2X growth. They expanded their partnerships to include 4 more storefronts and attained a 100% sell-through rate. By harnessing PoST, brands like Six Labs can gain deeper insights into sell-through metrics, enhancing collaboration with retail partners and boosting order sizes.

PoST revolutionizes services for wholesale cannabis brands by providing real-time sell-through visibility. It reduces financial risks for retailers, ensures payment collection, and offers valuable market insights. Embracing PoST can boost your sales efficiency, secure shelf space, expand to new stores, automate collections, and align product development with demand. Enhance your wholesale cannabis payments strategy with PoST to elevate your brand’s success in the competitive cannabis market.

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Our technology powers wholesale cannabis commerce. Since 2016, we’ve helped over 12,000 companies build relationships, process payments and ship products to retail. Our solutions service over $5B in annual GMV and support customers in over 30 markets.