Igadi Retains Cash and Grows Brand Partnerships Using PoST
Learn how Colorado retailer, Igadi, frees up cash and expands their SKU selection using LeafLink’s Payment on Sell-Through (PoST).
Company Overview
The Challenge
As a growing retail chain, Igadi was processing $283K of orders and invoices each month, and cash was tight. Products sometimes didn’t sell as quickly as they needed them to, making it difficult to keep up with payables. When he learned about LeafLink’s Payment on Sell-Through (PoST), CFO Steve Michel saw an opportunity.
“We were frontloading all of our inventory purchases and our vendors were expecting us to pay on net terms. But some products don’t sell quickly enough to recoup the cost, and that makes paying on net terms difficult.”
Steve Michel
CFO, Igadi
Igadi was already doing some analysis on sell-through performance, but putting those learnings into practice was tough. Many brands insist on selling large quantities of products by the case, which is often more than they need at an individual retail location.
“For many brands, the case sizes are too large and the delivery fees add up quickly when you’re placing more frequent orders. We had to move to a central distribution model to be able to send the right quantities to each store.”
The Solution
Igadi was the first major retail chain in Colorado to onboard to PoST, and has been pleased with the initial results.
“PoST is a great middle-ground approach for folks who don’t have the funds to pay on net terms. It helps us keep inventory at a healthy level, while offering the flexibility to be dynamic and try out new products.”
In particular, PoST has improved Igadi’s relationship with Escape Artists, a brand they had to stop ordering from because of payment challenges.
“Escape Artists’ products are great, but things like chocolates and topicals don’t sell as quickly. PoST allowed us to get current with our invoices and start ordering from Escape Artists again without the fear of falling behind.”
The Results
Overall, PoST has been a positive addition to Igadi’s tool kit.
“Now we can try out more dynamic SKU assortments at a mix of lower and higher price points. PoST helps us order those higher priced items with less risk. Some of the decisions we’ve made through PoST, we wouldn’t have been able to consider before.”
Learn more about PoST or request a demo.
