How Bloom Montana boosted AOV by 40% over cash-only sales with PIN Debit processing
Bloom Montana is the Big Sky State’s largest medical cannabis dispensary community, supplying naturally grown and sustainably produced MMJ products.
With knowledgeable and attentive staff in over 30 locations across the state, Bloom strives to make its customers' experience as enjoyable and comfortable as possible.
The problem: running a cash-only cannabis business
The cannabis industry has always had a cash problem.
For dispensaries in the U.S, cannabis remaining a federally scheduled substance was long seen as a significant obstacle to accepting more modern methods of payment. While cannabis is legally regulated in the vast majority of states and Washington, D.C., major credit card networks prohibit the processing of cannabis payments.
Until recently, these restrictions forced dispensaries like Bloom into adopting an all-cash policy. The result? Inconvenienced customers, increased likelihood of theft, additional overhead and operational expenses, and even challenging tax collection practices—with some dispensary owners literally delivering sacks of cash to City Hall.
Another downfall of being cash-only? Many banks and financial institutions won’t work with dispensaries due to cannabis being classified as a Schedule I substance. “The national change shortage makes it hard to get actual money, and banking is a definite challenge” said Alex Thomas, General Manager at Bloom.
The solution: offering customers a new way to pay with PIN debit
The team at Bloom understands that customers’ attitudes can directly affect the size of their purchases. They knew if they made shopping (and paying) for cannabis more convenient, they could potentially encourage them to spend more.
“Our patients and customers have been asking for debit card acceptance for a long time,” says Thomas. “While most of them have become accustomed to paying in cash, it’s great to finally be able to offer them their preferred payment method,” he adds.
And they were right. Within a month of enabling their PIN Debit solution, most stores saw increases in AOV and the Ashland location saw a 40% lift in AOV over cash only sales. Plus, 46% of those transactions included a tip.
Providing their customers with a modern retail experience is a crucial competitive advantage for Bloom’s 30+ locations. Cashless payment solutions like PIN debit allow their customers to escape the cash trap, while boosting your sales volume and reducing the security risks associated with operating in all-cash.
With fully-integrated PIN debit from Dutchie, Bloom has streamlined the checkout experience with a secure, convenient, and cashless way for customers to purchase their favorite cannabis products.
The outcome: faster checkouts, decreased likelihood of theft, and happier customers
Here are just a few benefits the Bloom team is seeing from PIN debit:
- Increased revenue. Bloom’s Ashland, Montana location saw a 40% increase in average order value (AOV) over cash.
- Tips for FoH retail staff. On top of increased AOV, nearly half (46%) of all PIN debit transactions at Bloom include a tip for Front-of-House retail workers.
- Stability. PIN debit is one of the most stable and cost-effective payment solutions for the cannabis industry because it eliminates cash, increases security, and drives customer loyalty.
- Faster checkouts. PIN debit transactions increase the speed of service by minimizing reliance on cash. Dutchie dispensary partners like Bloom who leverage cashless payments process up to 15% more transactions compared to those that don’t.
- Improved loyalty and retention. Offering customers a familiar checkout experience with a simple debit insert and PIN entry keeps them coming back for more.
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For Bloom, PIN debit transactions have increased speed of service by minimizing reliance on cash—reducing human error and making customers happier along the way.
Finally, PIN debit has also allowed Bloom to future-proof their retail operations. With momentum building around the normalization of cannabis banking and payments, dispensaries with fully-integrated PIN debit will be best-positioned to accept credit cards in the future.
About Dutchie
Dutchie is an all-in-one technology platform powering the cannabis industry with Point of Sale, Ecommerce, Payments, and Insurance. Through our technology, we’re helping cannabis businesses start, operate, and grow with confidence. With software that simplifies their operations, our customers can focus on what matters most—bringing the benefits of cannabis safely to consumers.
