How Bloom City Club Conserved Working Capital
Read how Bloom City Club leveraged PoST to their improve procurement strategy.
Executive Summary
- Problem: Bloom City Club was paying for all their inventory on 7-day terms, leaving them with little cash on hand to invest back into the business.
- Goal: Understand product sell-through to improve purchasing strategy and reduce upfront inventory investment.
- Outcome: Bloom was able to gain valuable insights into SKU performance that helped them to optimize their purchasing strategy, reduce risk, and free up working capital leveraging LeafLink’s new payment solution, Payment on Sell-Through (PoST).
Overview
Based in Michigan, Bloom City Club is a retail chain with locations in Ann Arbor, Paw Paw, Sturgis, and Ypsilanti. Proud holder of the 8th license in the sate, they are committed to cultivating excellence in the cannabis industry (and have been since day one). Bloom City Club is Veteran-owned, female led, and still locally owned – They pride themselves on being deeply rooted in the communities we serve and are committed to inclusivity, diversity, and sustainability.
What is Payment on Sell-Through (PoST)?
Payment on Sell-Through (PoST) is LeafLink’s new payment program and insight tool that enables buyers and sellers to transact more strategically and collaboratively.
PoST provides guaranteed payment and valuable visibility into retail sell-through that can inform smarter sales strategies and even influence upstream product development plans.
PoST reduces upfront inventory investment and frees up cash flow by only charging for product after it has sold through to the end consumer.
Ultimately, both parties benefit—with better insight into what’s selling, how much, and how quickly, buyers and sellers can proactively optimize their regular order quantities to prevent stock-outs and avoid carrying stale inventory.
The Process
Results
2X SALES INCREASE
Bloom doubled sales in week 5 on SKUs that previously weren’t selling by implementing a discounting strategy in partnership with the brand.
40% OF PAYMENT DELAYED
Bloom was able to delay payment for 60 days on 40% of their order, freeing up an additional $1,597 in capital over the course of eight weeks.
$1,284 SAVED
They were able to save $1,284 by excluding two overstocked SKUs from their subsequent order.
0 DAYS OUT OF STOCK
0 days spent out of stock. Both the buyer and seller had insight into inventory levels, so they were able to quickly restock or replace any SKUs that sold out.
“With PoST, Bloom City Club gained powerful insight into SKU performance that helped them optimize ordering for each of their stores. I’ve since recommended the program to multiple other retail chains. The PoST model is a win for both buyers and sellers, and I’m excited to see it change the industry for the better.”
Sandra Lee
Controller, CannaPro Solutions
About LeafLink
LeafLink is the software ecosystem for wholesale cannabis commerce with a community of 12,000+ licensed buyers and sellers in 30 markets across the US. Processing $5B+ in annual transactions, LeafLink believes in technology’s power to transform the industry and provide customers with tools for resilient and scalable business practices.
In the neighborhood? Visit Bloom City Club in person!
