Bhang Chocolates just sold a 60% share for 39 million

Dan Kone

Dan Kone

Well-Known Member
http://money.msn.com/business-news/article.aspx?feed=BW&date=20140311&id=17425142#scpshrjwfbs


This is just the beginning. Expect more stuff like this in our near future.

Bhang Chocolates is a well marketed but not particularly popular product. Crazy that it sold for so much. This won't be the last company to sell for this kind of price tag. Expect much more of this in the near future.

I'm not the type to worry about corporate cannabis. I'm not at all concerned with Philip Morris coming in and taking over. I generally laugh at that kind of stuff. But Wall St? Yeah, that's a bit scary.

The problem with a publicly traded company is that it's basically a democracy. That democracy is considered with one thing. Quarterly stock prices. They vote excursively in the interest of temporary value increases and in many cases that comes at the price of long term viability, which doesn't concern them. It reduces quality IMO.

It will be interesting to see what happens and who's the next to cash in.
 
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Metasynth

Metasynth

Well-Known Member
Can I sell my caramel company for just 3.9 million? 125mg per bite sized caramel. I'd be happy with 10% of what Bhang got.
 
M

Mithrandir420

Well-Known Member
adower said:
Not a chance.
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Actually, it is. Given an acceptable (within the scope of said product and it's competitors) product that does not cause harm, generally the one that sells the most is the one that has the most effective advertising.

Yes, marketing is that important. Why do you think companies like McDonalds and Coke spend so much on advertising? The idea that a product that is good will sell on it's own merits is great, but unless people know about your product, it won't sell. Also it has been proven time and time again that advertising gets people to buy products.
 
Dan Kone

Dan Kone

Well-Known Member
Mithrandir420 said:
Actually, it is. Given an acceptable (within the scope of said product and it's competitors) product that does not cause harm, generally the one that sells the most is the one that has the most effective advertising.

Yes, marketing is that important. Why do you think companies like McDonalds and Coke spend so much on advertising? The idea that a product that is good will sell on it's own merits is great, but unless people know about your product, it won't sell. Also it has been proven time and time again that advertising gets people to buy products.
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Check out all the top shelf edibles, then check out the lab testing on them. The only one I have found that isn't fake is cheeba chew. Steep Hill Labs just went through Colorado testing all their edibles and the finding was that they were all bullshit. They were all extremely low dose edibles being marketed as high dose edibles.

The most popular brand out there, Dr J's, were claiming 100mg but only had .37mgs.

http://www.thecannabist.co/2014/03/09/tests-show-thc-content-marijuana-edibles-inconsistent/6421/

Now check out edipure, which is currently the best selling edibles around.

Here's their best selling product. They claim 250mg's of thc per bag, which works out to 25mg's per candy. Here's their actual testing.

http://www.sclabs.com/sample-details.html?task=sample&sample=130627U006

0.3 mg/g. 5 gram candy weight works out to 1.5mg/g which works out to 15mg's per bag. So the claimed dosage is 250mgs but the actual dosage is 15mgs.

It's bullshit.



It's not limited to edibles either. Look at the marketing campaign against wax last year in favor of shatter. There is no effect benefit to shatter over wax. If you ask anyone from any lab testing facility they will tell you the only real difference between the two is that shatter generally tests higher in residual butane. Yet shatter makers successfully convinced everyone that shatter is a superior product.

Then look at the bubble hash market. You couldn't give away bubble hash 2 years ago. People would pay about $20 a gram max for it. However they just rebranded it as ice wax or solventless and now people pay up to $80 a gram for it.

And then there is the name game with buds. People just started throwing OG after everything and their buds they couldn't sell all of a sudden because very valuable.

It's all marketing.
 
sehnsee

sehnsee

Well-Known Member
The triple strength are NO JOKE! Super potent, if they don't get u high you smoke WAY too much!
 
fumble

fumble

Well-Known Member
Marketing is def where it's at...I make true dosage (400 mg for my peanut butter and jelly bars) items and have a hell of a time getting in any doors.
 
Dan Kone

Dan Kone

Well-Known Member
fumble said:
Marketing is def where it's at...I make true dosage (400 mg for my peanut butter and jelly bars) items and have a hell of a time getting in any doors.
Click to expand...
Try making a low dose version. Low dose edibles are popular right now. A lot of people would rather eat 1-3 low dose edibles than 1 that will annihilate you. Also - packaging is everything. Have good packaging and you'll have good sales.
 
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