How do you pay for your MMJ?

The Hippy

The Hippy

Well-Known Member
GroErr said:
Since we're having the conversation, let's look at some numbers. I spent an hour putting together a rough scenario for a personal/basement op. Used known costs vegging with LED and Flowering with CMH (what I use), adjust per your tech/known yields etc (assuming commercial strains @ 4 oz/plant, 8 week veg/8 week flower). Rough numbers thrown in for some operational costs like nutes and the like, those could easily be much lower. Tried to account for everything if you were buying retail for a small op except the labour to build the room and operate it. Interesting numbers if you insert even just rent/insurance @ $1,200/month it shoots the numbers up to around $3/gram cost, add labour in there and it'll probably be $4-$5/gram + depending on the op method. Add significantly higher costs in for building an MPPR op (capital), even if you shave operational costs, depreciation or a capital replacement fund would be much higher.

Don't trash/argue it based on the numbers I input, the jist of this spreadsheet is to capture the capital and operational costs involved, adjust to your liking and come up with your own costs.

Tear it apart, adjust for your scenarios and re-post for discussion purposes. Apologies if you can't open it, had to .zip it to upload:
​
Click to expand...
Gotta agree on this scenario
 
C

CannaReview

Well-Known Member
GrowRock said:
Quit comparing a medical market in Canada to legal rec market in Washington and Colorado. No comparison
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Why? The market price is set and seems the market can bare $10-24 per gram. Even if you account for weed historically being cheaper in Canada that would still put legal price at say $7-14 per gram. Well if you want to compare rec vs medical in reality you would be paying more for "medical grade" which goes out the window since if its being sold in gov licenses operations it'll have to be clean enough to be consumed but the general public.
 
leaffan

leaffan

Well-Known Member
GrowRock said:
Just a question then leaf if it cost them 1$ to 3$ produce then why the 8$ to 10$ cost that's huge inflation right there plus after the first...say 2 grows there cost would drastically go down but there prices won't.
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Ok...keep in mind that this is not about helping patients. LPs care as much about patients as Bayer and all the other pharma companies do...zippo. It's all about making money.

When I was in the midst of it we came up with a cost of $1.75/g, we were confident that we could get it down to $1.10-1.25/g. ( south western ont, indoor )
Our target sell price was to be $6/g. We were prepared to go as low as $3.50/g if there was a pissing contest.
It is a business...you want the highest profit margins you can achieve.
Strictly supply and demand.
I know it sounds cold and callous, but I'm just being honest.
 
leaffan

leaffan

Well-Known Member
GroErr said:
Since we're having the conversation, let's look at some numbers. I spent an hour putting together a rough scenario for a personal/basement op. Used known costs vegging with LED and Flowering with CMH (what I use), adjust per your tech/known yields etc (assuming commercial strains @ 4 oz/plant, 8 week veg/8 week flower). Rough numbers thrown in for some operational costs like nutes and the like, those could easily be much lower. Tried to account for everything if you were buying retail for a small op except the labour to build the room and operate it. Interesting numbers if you insert even just rent/insurance @ $1,200/month it shoots the numbers up to around $3/gram cost, add labour in there and it'll probably be $4-$5/gram + depending on the op method. Add significantly higher costs in for building an MPPR op (capital), even if you shave operational costs, depreciation or a capital replacement fund would be much higher.

Don't trash/argue it based on the numbers I input, the jist of this spreadsheet is to capture the capital and operational costs involved, adjust to your liking and come up with your own costs.

Tear it apart, adjust for your scenarios and re-post for discussion purposes. Apologies if you can't open it, had to .zip it to upload:
​
Click to expand...
Nice spread sheet.
So say you were an LP...would you have small grow rooms or big ones? Key decision to be made. Lets say you decide to have small rooms 12 x 1000w, each batch has to be tested. $1000 odd. A cost that lots of people forget about.
 
GrowRock

GrowRock

Well-Known Member
But it is about patients at the end of the day leaf so. If patients sorry customers could purchase more at lower price it would be a win win. None of the LP's so called customers can even afford their full scripts. So if the LP's start to look at selling ounces (which is what is needed for edibles oils etc)instead of grams what is consider recreational. Then I would say a lot of LP's are in the wrong market. At the end of the day once you have two grows under your belt your equipment should be paid for and LP's want to get rich right know that's not how business works that's the lottery lol busines takes time to gain returns so don't stick it to the patients sorry customers to help pay your business off as if you hit the gold rush or green rush or whatever the Feds were calling it open market. My ass
 
leaffan

leaffan

Well-Known Member
GrowRock said:
But it is about patients at the end of the day leaf so. If patients sorry customers could purchase more at lower price it would be a win win. None of the LP's so called customers can even afford their full scripts. So if the LP's start to look at selling ounces (which is what is needed for edibles oils etc)instead of grams what is consider recreational. Then I would say a lot of LP's are in the wrong market. At the end of the day once you have two grows under your belt your equipment should be paid for and LP's want to get rich right know that's not how business works that's the lottery lol busines takes time to gain returns so don't stick it to the patients sorry customers to help pay your business off as if you hit the gold rush or green rush or whatever the Feds were calling it open market. My ass
Click to expand...
In all my meetings not once did any investor show any concern for patients. Patients are consumers.
It is all about profit and expanding, and tolerating the inconvenience of having to deal with the "medical" market till the recreational market opens up.
You should have seen their faces when I was talking about how to administer a compassionate program for patients that needed assistance. They thought I was a fucking idiot.
 
Jackal69

Jackal69

Well-Known Member
you know I would be the first one to say fuck the rec users and they can pay, there are a very small number of LP CUSTOMERS. They could make a good living off cheaper stuff, the govt should have forced a set price. Then when they "legalize" it then charge fucking high prices for the rec users.... this would of course allow the med users low pricing.
Just the idea of fleecing the poor and sick makes me puke, so when the courts ensure homegrowing can be made possiable again you will see all these LP's (specially the huge fucks) dwindle and die off one at a time.
 
Jackal69

Jackal69

Well-Known Member
leaffan said:
In all my meetings not once did any investor show any concern for patients. Patients are consumers.
It is all about profit and expanding, and tolerating the inconvenience of having to deal with the "medical" market till the recreational market opens up.
You should have seen their faces when I was talking about how to administer a compassionate program for patients that needed assistance. They thought I was a fucking idiot.
Click to expand...
I get what you are saying, but the truth of it is.... this type of corporate rule has really got to go.
 
Jackal69

Jackal69

Well-Known Member
I'm also talking about the general way corporations treat their so called customers..... i'll tell ya right now.... if the corporate world don't sort themselves out soon .... even the soccer moms will join the revolt against them all.
 
leaffan

leaffan

Well-Known Member
What about Pharma companies that have vaccines available but are unwilling to provide them to third world countries at a lower price? They let people suffer and die.
 
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