I just heard as of 2013 or something they are changing the laws regarding Medical MJ?

Dan Kone

Dan Kone

Well-Known Member
Kaendar said:
your wrong about that dude, state law does say that dispensaries must be non-profit,
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Well I'm not wrong. Yes, state law does say that, which I mentioned. However it wasn't prop 215 that said that, it was the state senate that imposed that law.

and that they also must provide some other service besides selling weed.
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That's for caregivers, not dispensaries.

Either way, they should only sell at a rate that takes care of their overhead.
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So they should take huge risks and not receive a benefit for it? I disagree with that.

Prop. 215 wasnt passed so that ppl can be legal drug lords, opening up a storefront bud shop and raking in the cash. No, dispensaries are allowed to provide safe access.
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Prop 215 doesn't mention any of that. It puts no limits on financial gains. SB420 is what puts limits on that.

I hardly consider it access when they buy something for $65 an oz from the vendor, and sell it for $280. Thats robbery.
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Yep. That's really shitty, I totally agree. IMO dispensary markup should be double the wholesale cost, no more.

I prefer buying from the vendor directly.
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Right on. More power to ya.

Thats why there is a huge backlash against dispensaries in LA right now.
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If people don't want bud for $65 an 1/8, they should stop buying bud at that price. But I have a hard time blaming dispensaries for that. Most of the time they have something on the mid or even lower shelves that's just as good or even better in terms of medical effects.

Usually the difference between mid shelf and top shelf is almost 100% bag appeal. It has almost nothing to do with medical value. Dispensaries don't owe you cheap high bag appeal bud. And that's how bud is priced almost almost exclusively. Bag appeal is the single greatest factor in determining bud prices.

If you know your bud, you can almost always find mid or low shelf bud with the same or better medical value. If you go into a dispensary and only consider buying their top shelf high bag appeal bud, that shit is on you, not them. The fact is that people are willing to pay a lot of money for bud with high bag appeal. The dispensaries are not the reason for this. The people who come into dispensaries are the reason for this. If people stopped paying extra for high bag appeal, I promise you that dispensaries would stop charging more for it. They aren't going to put bud on their shelves at a price no one will pay. But when people go into dispensaries and only want to look at the most expensive thing in the store, well that shit is on them.

With sites like budtrader popping up ppl are realizing how cheap these pounds are that the dispensaries are getting
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That's cool too. Same with delivery services. They usually sell their bud cheaper. All that stuff keeps dispensary prices in check and I support it 100%.




If I had my way, all bud would be lab tested. All test results would be posted. People would only buy bud based off those test results + smell/taste. But that's not the way it works, and that's not just the dispensary's fault. Even in clubs that lab test all their bud, they still price their bud based on bag appeal, not medical effects/potency. That's because bag appeal is the most important quality to most people who buy bud at dispensaries, not potency or medical effect. That also means you can easily find really good bud that's not priced as top shelf.

Bottom line is that bag appeal is NOT a medical need. If dispensaries want to make a profit on people who go into their shops to seek out bud that looks good, then why shouldn't they do that? Bag appeal has nothing to do with compassion. If you want a good deal on bud that fills a medical need, those deals are really, really, really easy to find at just about every dispensary in the state.
 
curious2garden

curious2garden

Well-Known Mod
Staff member
This is one of the biggest misunderstandings there is. The about Profit vs Non Profit businesses. This is a designation based on stock structure. It has zero to do with the end product. Non profit means that any financial profit made above cost must be returned and used in the corporation and not paid as dividends to stock holders. That's what non profit means no stock dividends. All profit remains in the organization. That's why this entire donation thing is nutty.
 
Dan Kone

Dan Kone

Well-Known Member
curious2garden said:
This is one of the biggest misunderstandings there is. The about Profit vs Non Profit businesses. This is a designation based on stock structure. It has zero to do with the end product. Non profit means that any financial profit made above cost must be returned and used in the corporation and not paid as dividends to stock holders. That's what non profit means no stock dividends. All profit remains in the organization. That's why this entire donation thing is nutty.
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100% Correct. There are people in non-profits all over the country making a good deal of money.

A non-profit is a type of business. It is NOT the same as a charity. It's not taxed the same as a charity. It's not in any way treated like a charity. These are not the same thing. While all charities might be non-profit, that does not mean all non-profits are charities.

The reason to make businesses non-profit is not to say people can't make any money. It's to avoid the public trading of those companies and to prevent the money from going directly into a harder to monitor LLC.
 
Kaendar

Kaendar

Well-Known Member
Dan Kone said:
Well I'm not wrong. Yes, state law does say that, which I mentioned. However it wasn't prop 215 that said that, it was the state senate that imposed that law.



That's for caregivers, not dispensaries.



So they should take huge risks and not receive a benefit for it? I disagree with that.



Prop 215 doesn't mention any of that. It puts no limits on financial gains. SB420 is what puts limits on that.



Yep. That's really shitty, I totally agree. IMO dispensary markup should be double the wholesale cost, no more.



Right on. More power to ya.



If people don't want bud for $65 an 1/8, they should stop buying bud at that price. But I have a hard time blaming dispensaries for that. Most of the time they have something on the mid or even lower shelves that's just as good or even better in terms of medical effects.

Usually the difference between mid shelf and top shelf is almost 100% bag appeal. It has almost nothing to do with medical value. Dispensaries don't owe you cheap high bag appeal bud. And that's how bud is priced almost almost exclusively. Bag appeal is the single greatest factor in determining bud prices.

If you know your bud, you can almost always find mid or low shelf bud with the same or better medical value. If you go into a dispensary and only consider buying their top shelf high bag appeal bud, that shit is on you, not them. The fact is that people are willing to pay a lot of money for bud with high bag appeal. The dispensaries are not the reason for this. The people who come into dispensaries are the reason for this. If people stopped paying extra for high bag appeal, I promise you that dispensaries would stop charging more for it. They aren't going to put bud on their shelves at a price no one will pay. But when people go into dispensaries and only want to look at the most expensive thing in the store, well that shit is on them.



That's cool too. Same with delivery services. They usually sell their bud cheaper. All that stuff keeps dispensary prices in check and I support it 100%.




If I had my way, all bud would be lab tested. All test results would be posted. People would only buy bud based off those test results + smell/taste. But that's not the way it works, and that's not just the dispensary's fault. Even in clubs that lab test all their bud, they still price their bud based on bag appeal, not medical effects/potency. That's because bag appeal is the most important quality to most people who buy bud at dispensaries, not potency or medical effect. That also means you can easily find really good bud that's not priced as top shelf.

Bottom line is that bag appeal is NOT a medical need. If dispensaries want to make a profit on people who go into their shops to seek out bud that looks good, then why shouldn't they do that? Bag appeal has nothing to do with compassion. If you want a good deal on bud that fills a medical need, those deals are really, really, really easy to find at just about every dispensary in the state.
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Fuck bag appeal. I buy watever is cheapest and is the most potent.. if that means a$100 oz of outdoor bubblegum than fuck it.. its all gonna get me just as high, even if its not maple syrup sticky or nose crinkling dank smelling. And the fucked up shit is that when I buy these outdoor $100 ounces I know that the dispensary only bought it for like $30. I hate this twilight zone between harvests.
 
jeffdamann

jeffdamann

Active Member
I love the non-profit argument. Heres an example to show you that the people in the dispensary can get rich, without ever making 1$ of profit.

Theoretical Figures of course

Dispensary Income Sept. 2012 - $250,000 (must be a huge disp eh? I like to use large figures)
Overhead for product, and materials to sell - $125,000(This is completely realistic and representative of todays market, if you were dealing around 30 lbs a month)

That leaves 125,000$, but we havent paid our 10(yes we only have 10 full time employees, all thats needed) employees yet. Lets say they make 500$a week
Thats $20,000 for the entire payroll.

Now we have $105,000, no expenses to pay, overhead is taken care of, everything is in the clear. Surely this is profit?

No it is not, I forgot that my position pays a salary of 105k a month, I just got rich and the company never profited!



Now I know my logic may be flawed on this,(and we all know noone is trying to get rich on THAT level), but what Im trying to hint at here is that if a disp closes the books on a month with 5,000$ in the black, they would likely just distribute that among employees in some form.
 
Dan Kone

Dan Kone

Well-Known Member
jeffdamann said:
I love the non-profit argument. Heres an example to show you that the people in the dispensary can get rich, without ever making 1$ of profit.

Theoretical Figures of course

Dispensary Income Sept. 2012 - $250,000 (must be a huge disp eh? I like to use large figures)
Overhead for product, and materials to sell - $125,000(This is completely realistic and representative of todays market, if you were dealing around 30 lbs a month)

That leaves 125,000$, but we havent paid our 10(yes we only have 10 full time employees, all thats needed) employees yet. Lets say they make 500$a week
Thats $20,000 for the entire payroll.

Now we have $105,000, no expenses to pay, overhead is taken care of, everything is in the clear. Surely this is profit?

No it is not, I forgot that my position pays a salary of 105k a month, I just got rich and the company never profited!



Now I know my logic may be flawed on this,(and we all know noone is trying to get rich on THAT level), but what Im trying to hint at here is that if a disp closes the books on a month with 5,000$ in the black, they would likely just distribute that among employees in some form.
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It's a little more complicated then that, but yes, it's sort of like that.
 
thecrushinator

thecrushinator

Active Member
The government really needs to stay away from our medicine.... This is not right and highly immoral, having to constantly be on alert for a change in the laws..... We don't need to be constantly worrying about how we will make it in this business, keep the damn laws consistent and stop trying to change them.


Regardless, this change sounds a lot like how Montana and Michigan run their mmj program.
 
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