Grower vs Dealer: who should make more?

Originally Posted by tip top toker

Who cares. The grower can sell for what he wants to sell for, and a dealer can sell for what he wants to sell for. They all decide their own margins based on who they know. Why should there be some link between the two profits? Once the grower has sold his weed, he's sold his weed, job done. If the grower is then thinking about how to maximise the profit based on the street pievemeal value, then the grower is simply turning into a greedy cunt

well said.

maybe off thread alittle but.....there is a guy around by me, he is in business and sells 0.6gram for £10....no coins.. he is always there as an absolute emergency, always good, always expensive... one spliff for a tenner.... any others out there?

Originally Posted by hellohappinesss

Dealers have the power to make more money.. I have personally experienced the mj market in my non mmj city decline and become a shittier place only because growers are trying to maximize their profits.. watching too much scarface. All growers should handle their business like Gastanker because if they dont and they hear about their dealers making $410 an oz and want some of that cash and up the price.. well.. the dealer is only going to re-up their price rather than taking the hit. people sell bud for a price that depends on what they received it for. yes growers have that "I take a greater risk" excuse but I've honestly gone mad watching the prices of bud increase in my city only because of growers greed. hence - why I've started growing

And that's the point. If the price gets too high the dealer will have to alter his selling price to reflect that or he will sell less and less as people go elsewhere, as competition undercuts him or... as people start growing their own. If the dealer can't afford the grower's price, he won't buy either.

dude growing weed costs alot more then u think
matters were u live how much u pay for power.. how much u paid for equipment.. honestly.. my bud was 400 a zip 350 a zip if for my boys.. never sold pounds .. of my own .. and wen i get all the equipment i need.. and its all paid for.. then my prices will go down.. and ill be able to get rid for 250 to 3 a zip for primo nugs.. and thats for indoors..outdoors.. is more like 150 to 200 A ZIP.. and then thats depending on quality.. and how much work went into it .

u guys can sit there an say it costs nothing to grow.. but if u r growing with more then 2 1000w lights.. u will be paying an arm and a leg for the RIGGHT SET UP.. 4 bulbs.. 2 mh 2 hps.. 2 Hoods 2 ballasts.. 2-3 inlines.. 1 Carbon Filter.. nutes light hangers... tables poly .. cloning materia .. ive spent 2000 on shit the past 3 months.. not to mention thats not on any of the stuff i named before that.. this is including new nutrients.. 40 Liters of CANNA .. if u grow with good nutrients...... u pay for it .. and u buy 400 dollar ozs cuz of it . haha but still i have not seen better results then canna then fox farm.. id love to see wat guys that use fox farm could do with bio canna.. man talk about tasty buds.. ORGA?Nic?=

Lol, you keep convincing yourself weed has to be expensive to grow. If i upgrade to a pair of 1000w lights my yield goes up accordingly, the costs remain about the same. But hey, people will do as they have to do to justify their greed

You from Liverpool?
10£ for .6 i would dislocate his features...

Originally Posted by elenor.rigby

maybe off thread alittle but.....there is a guy around by me, he is in business and sells 0.6gram for £10....no coins.. he is always there as an absolute emergency, always good, always expensive... one spliff for a tenner.... any others out there?

Originally Posted by purklize

You have to rent a bigger apt to be able to do it, or you're sacrificing space. It's not costing you money right now, but theoretically it is.

Growing profits are determined by risk and labor, dealing by risk alone. Growing is a million times more work than dealing. Maybe it costs you $0.25/g to grow, but it's certainly taking you more than $0.25 worth of time at minimum wage to grow.

First of all, there is still work involved in dealing. You have to develop your connections, and deliver the product securely from point A to point B (or maybe A to B to C). That takes time and work, even apart from the risk. There are costs involved in terms of gas, phone, security, etc. If you're going to count time value in growing, then you have to count it in dealing too.

Again, the exact level of risk is highly dependent on the exact circumstances. Growing can less risky than dealing, but it can also be more risky. It depends on where you are growing, how many plants, under what circumstances, whom your deals are being made with, how big they are, etc, etc, etc. Big grow ops are potentially a lot more legally risky than small time private sales.

Growing certainly doesn't have to be a "million times more work" than dealing. If you're already tending a garden anyway, then growing might literally be as simple as throwing a few seeds in soil in your garden in May then harvesting them in October.

While its true that not every cost can be exactly measured in dollars, there is no "theoretical" cost; either something is a cost or it isn't.

In business there is a concept called "incremental cost", and that's what we're talking about here. That's cost incurred by doing something over and above costs you would be incurring anyway.

The classic example is you're a boss, and you have ten employees who each manufacture ten widgets per day for your company. Now you get a new contract, so you have your workers make twelve widgets per day. Since your employees weren't working to their maximum capacity, and since you're just using manufacturing capacity that you had but was otherwise sitting idle, you don't need to hire any more employees or buy any more machines to make up the extra output. In practice, the incremental cost to you of the extra widgets is ZERO, apart from the raw material cost. Not only are you making more money in an absolute sense from putting out 20% more output, your profit MARGIN has gone up too. . .since your labor and manufacturing costs are divided by a larger output you're making more money per piece.

If you're growing in a space you would otherwise be renting or paying for anyway, then there is no incremental cost of that space for growing. For example, if you convert an unused corner of your basement into a grow area, the effective cost to you of using that space for growing is zero. You're just using potential space that was otherwise wasted. Toss a pot plant into the corner of your already existing vegetable garden, again, no incremental cost.

Yes, there may be additional costs of light, water, nutes, your time, etc, but those are different than space costs.

Now, lets say the space you want to grow in is being used for something else. Now the cost to you of using that space for growing isn't the same as the cost of renting it, its the cost of displacing whatever you were doing there first. That could actually be MORE than the rental cost of that space, or less, depending on what you were doing with it.

Lets say you are an MMJ patient and even though you can legally grow up to 6 plants, you don't need that many, and usually only grow 4 at a time.

Now lets say you decide you want a little extra cash and decide to grow some extra bud. Throwing another two plants into your existing grow may involve negligible incremental cost. Since you're already done all the work setting up the grow space, already have all the nutes, pots, etc, and since you're already doing all the labor on an ongoing basis anyway, the incremental cost of maintaining a few more plants is simply not significant.

Originally Posted by LIVE2GRO

dude growing weed costs alot more then u think
matters were u live how much u pay for power.. how much u paid for equipment.. honestly.. my bud was 400 a zip 350 a zip if for my boys.. never sold pounds .. of my own .. and wen i get all the equipment i need.. and its all paid for.. then my prices will go down.. and ill be able to get rid for 250 to 3 a zip for primo nugs.. and thats for indoors..outdoors.. is more like 150 to 200 A ZIP.. and then thats depending on quality.. and how much work went into it .

u guys can sit there an say it costs nothing to grow.. but if u r growing with more then 2 1000w lights.. u will be paying an arm and a leg for the RIGGHT SET UP.. 4 bulbs.. 2 mh 2 hps.. 2 Hoods 2 ballasts.. 2-3 inlines.. 1 Carbon Filter.. nutes light hangers... tables poly .. cloning materia .. ive spent 2000 on shit the past 3 months.. not to mention thats not on any of the stuff i named before that.. this is including new nutrients.. 40 Liters of CANNA .. if u grow with good nutrients...... u pay for it .. and u buy 400 dollar ozs cuz of it . haha but still i have not seen better results then canna then fox farm.. id love to see wat guys that use fox farm could do with bio canna.. man talk about tasty buds.. ORGA?Nic?=

I swear, this thread is literally turning into MBA business class 101.

Now we're talking about what might be termed "startup costs" .

Once you've paid $1000 for your setup, you're set up. That's a one time cost, and its an INVESTMENT into your business. Apart from changing your bulbs every 6 months, or whatever, you're set. Given the margins on weed, you can probably recoup the entire amount of that startup cost from your first harvest.

If you divide the cost over the number of grows you might expect to complete over the life of the lamps and setup, the per-harvest cost ought to be pretty low. More important, whenever you decide you're done with the lamps, you will probably be able to sell them and recoup part if not most of the cost you incurred in buying them. So even though you spent $1000 on the lamps, doesn't mean all that value is gone; maybe they're still worth $500 or even more. If you divide the NET cost of the lamp per crop (or what you might term the depreciation of the lamp) the cost per ounce or harvest ought to be that much lower yet.

Yes, nutes, electricity (light, ventilation and cooling), carbon filters, water, bulbs, and possibly security are part of your ongoing per-crop costs. Those might be termed the ongoing costs of doing business, and any successful businessman knows that dollar savings there translate directly into increased profits at the bottom line.

If you think the costs are too high, look for cheaper alternatives. Try more efficient lights. Try maximizing your yield per watt. Try different nutes, etc. Believe it or not, its possible to get excellent results using more generic hydroponic nutrients (instead of ridiculously overpriced ones specifically targeted at cannabis growers).

Even if yields from nute "A" are more than nute "B", the costs still matter. Are the increased yields worth more than the increase in nute costs? Given the value of the final product, they likely are, but if not, the smart business decision might be to go with the cheaper nutes, even if they lead to lower yields.