I live in Seattle, and I'm hearing each dispensary makes like $250K in revenue PER month.
That's some mind boggling numbers, so I looked into starting one. Unfortunately, the window for applications is now closed, but it got me thinking:
A) First off, why isn't the government allowing more pot retailers to open? Is there some shady dealing going on between existing dispensaries to limit # of retailers to limit competition, in exchange for some kick back?
B) Second, why are existing dispensaries all in some run down, tiny a** shops (very few have legit looking stores opened up)
C) Third, why aren't more people clamoring to start a dispensary? Seems way more profitable than opening another yoga studio, restaurant, etc.
If selling weed legally is so profitable, why don't more people do it?
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Because unlike selling pot illegally it’s hard for people to get approved for this kind of thing and it takes years to get one up and running legally
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I'm a plant biologist, and I feel sick when I see other people just growing weed and selling it. I was at the weed festival in Boston and so many people were growing and selling.
Maybe I was just disgruntled because I'm a plant biologist and the only careers here for us in Boston are for growing weed and analyzing weed samples.
You don't need a degree to grow weed or plants.
Here in Boston, you're allowed to grow 5-6 cannabis plants. Some seeds sell for $10 a seed. You can't grow these in an apartment because of space restrictions.
I estimate you'll need to spend at least $1500-$2000 for a setup including lights and hydroponics. All of these terms sound fancy but nah. You need equipment to replicate growing cannabis plants as if they are in their natural environment. These are flowers.
I applied to some weed companies with a plant biology degree and got rejected. Probably because I wasn't a girl, or didn't sound so attractive on the phone, or didn't have a Masters. Still, I don't want to grow weed for people and get payed $14/hr as a lab technician. I can make GMOs and for that to happen I need to move to the West. -
weed beginner wrote:
I live in Seattle, and I'm hearing each dispensary makes like $250K in revenue PER month.
That's some mind boggling numbers, so I looked into starting one. Unfortunately, the window for applications is now closed, but it got me thinking:
A) First off, why isn't the government allowing more pot retailers to open? Is there some shady dealing going on between existing dispensaries to limit # of retailers to limit competition, in exchange for some kick back?
B) Second, why are existing dispensaries all in some run down, tiny a** shops (very few have legit looking stores opened up)
C) Third, why aren't more people clamoring to start a dispensary? Seems way more profitable than opening another yoga studio, restaurant, etc.
Possible answers
A) What is the start up cost? To make serious money you need to be growing on a large scale not a couple of plants in your backyard. As for why there are limits, one guess might be that a lot of people are still skittish about pot sales and government might be trying to keep a check so that it is not crazy. Also my guess is that you cannot have a criminal background so that cuts down on folks who can apply. Then there is the issue of what to do with all that cash. Banks will not take it. Also, getting the start up cash might not be easy either.
B) Cheap leases and the work needed to be done to make it secure is a big cost. Also zoning laws might play a role.
C) Some people do not like the idea of selling pot and maybe fear the government will crank down is still there. -
Another potential issue is that the Federal Government still considers marijuana illegal. If the Fed's ever decide to enforce the law, would create a big problem for the business owners.
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OP here.
Hey, if you are around in Seattle area, maybe we should chat.
pond scum wrote:
I'm a plant biologist, and I feel sick when I see other people just growing weed and selling it. I was at the weed festival in Boston and so many people were growing and selling.
Maybe I was just disgruntled because I'm a plant biologist and the only careers here for us in Boston are for growing weed and analyzing weed samples.
You don't need a degree to grow weed or plants.
Here in Boston, you're allowed to grow 5-6 cannabis plants. Some seeds sell for $10 a seed. You can't grow these in an apartment because of space restrictions.
I estimate you'll need to spend at least $1500-$2000 for a setup including lights and hydroponics. All of these terms sound fancy but nah. You need equipment to replicate growing cannabis plants as if they are in their natural environment. These are flowers.
I applied to some weed companies with a plant biology degree and got rejected. Probably because I wasn't a girl, or didn't sound so attractive on the phone, or didn't have a Masters. Still, I don't want to grow weed for people and get payed $14/hr as a lab technician. I can make GMOs and for that to happen I need to move to the West. -
AndThere'sThat wrote:
Another potential issue is that the Federal Government still considers marijuana illegal. If the Fed's ever decide to enforce the law, would create a big problem for the business owners.
This is THE major issue.
Growing cannabis is legal in California, but farms all around the Central Coast are being destroyed, and the
operators being arrested. WTF??? Why is this happening? Because of Trump and the stupid federal government.
Cannabis has been a threat to big corrupt corporations for quite a long time, and apparently continues to be one. -
The kind of governments we have today at all levels serve primarily to create monopolies. The politicians and beaurocrats licenses their friends to do business and prevent everyone else from entering the market.
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Exactly `~ wrote:
AndThere'sThat wrote:
Another potential issue is that the Federal Government still considers marijuana illegal. If the Fed's ever decide to enforce the law, would create a big problem for the business owners.
This is THE major issue.
Growing cannabis is legal in California, but farms all around the Central Coast are being destroyed, and the
operators being arrested. WTF??? Why is this happening? Because of Trump and the stupid federal government.
Cannabis has been a threat to big corrupt corporations for quite a long time, and apparently continues to be one.
Those same "farms" are also clear cutting public forests, diverting public waterways, and boobytrapping the area. We arent talking about mom and pop putting their land back to work. -
There is a big difference between revenue and profit.
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Because like everything corporations get their hands on, it ends up being profitable only for the corporations. The small timer gets priced out.
Also, not nearly as many people smoke weed as people who smoke weed think. Everyone thinks their crowd is everybody, but nope. -
Bad Wigins wrote:
Because like everything corporations get their hands on, it ends up being profitable only for the corporations. The small timer gets priced out.
Also, not nearly as many people smoke weed as people who smoke weed think. Everyone thinks their crowd is everybody, but nope.
^virtue signaling -
This thread got me thinking of Bekele. If you want weed you should go to Amsterdam(weed is literally legal here). I recommend going in 2 weeks. The added bonus is you get to see Bekele run a course record while enjoying your weed as you watch him run and cross the finish line.
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Banana Bread wrote:
This thread got me thinking of Bekele. If you want weed you should go to Amsterdam(weed is literally legal here). I recommend going in 2 weeks. The added bonus is you get to see Bekele run a course record while enjoying your weed as you watch him run and cross the finish line.
my only weed experience is with an edible in amsterdam. ate even less than the amount recommended for newbies on the wrapper. Both my girlfriend and I were crazy paranoid and horny an hour later. Some of the best sex I've had, but don't know if I'd do it again. -
Since weed is still federally not legal to sell or possess, banks are not willing or allowed to deal with weed money. It's a strictly cash business. Now you have to deal the security required when you're sitting on hundreds of thousands of dollars in cash. Plus in states where weed is legal, prices are dropping drastically. Larger operations can afford smaller margins due to economies of scale, but smaller operations can't make it work. You're better off starting some ancillary weed business that banks are willing to deal with e.g. start an advertising agency that caters to the weed industry.
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- Federal government still considers it illegal. They can take everything you have and freeze your assets for no reason at any time.
- Banks wont deal with you or your money because of point 1. So no business loans or even checking/savings accounts.
- Local governments don't want these businesses around so they highly restrict the number of permits. Getting a permit is impossible.
- Local governments/communities don't want growers or disperses in their backyard. Finding a 'legal' place to run your business is very difficult. No one will rent to you, you will have to own the property.
- Startup costs are relatively expensive so you already need to have money to make money. In that process you are risking everything you already have because of point 1. -
weed beginner wrote:
I live in Seattle, and I'm hearing each dispensary makes like $250K in revenue PER month.
That's some mind boggling numbers, so I looked into starting one. Unfortunately, the window for applications is now closed, but it got me thinking:
A) First off, why isn't the government allowing more pot retailers to open? Is there some shady dealing going on between existing dispensaries to limit # of retailers to limit competition, in exchange for some kick back?
B) Second, why are existing dispensaries all in some run down, tiny a** shops (very few have legit looking stores opened up)
C) Third, why aren't more people clamoring to start a dispensary? Seems way more profitable than opening another yoga studio, restaurant, etc.
I've been involved locally (in Ohio) in our local government approving a medical marijuana facility. I've been able to spend a lot of time with the higher-ups in the cannabis company that is behind the facility (they are the largest cannabis cultivator in the country).
From what I can gather:
A) The legal cannabis industry is in its infancy. Instead of just opening it up to anyone and everyone, the government is taking their time, hence the few licenses they are awarding to companies. Everyone is learning as they go as it is a new legal industry. Once the groundwork is laid with a few companies, I'm sure the floodgates will open and more licenses will be granted for cultivation, processing, and retail (all separate licenses). From what I've learned, there aren't shady kick-backs going on. The government doesn't need kickbacks as they are making more than enough in tax revenue from these companies.
B) Dispensaries will be getting much better now that recreational cannabis is becoming more legitimate. Because of its legal status in many states, more companies with proper retail/hospitality/customer service experience will be getting involved, which will add a much higher (pardon the pun) level of professionalism, which includes cleaner, larger, more customer-friendly shops in much better neighborhoods/shopping areas.
C) There are several reasons here: 1) you need a HUGE amount of capital to even apply for a license. You need to show a proper business plan, have contracts in place for building/growing, have a large amount of COH (in Ohio it was $500k), and pay the money for the application ($200k for the initial application and license with a $200k annual renewal fee). 2) Not only do you need a large amount of liquid capital, you also need to find a bank that is willing to work with you as many national banks (Chase, BoA, USBank, etc.) will not work with the cannabis industry as the Federal Government can seize those funds (since the bank is national and falls under Federal laws, not local state laws). And 3) the industry hasn't been around (legally) long enough to show a proper ROI to investors. Investors are going to be skiddish on investing in an industry that does not have a lot of history and that is constanty in a legal "gray" area (at least Federally). Without investors, it's tough to come up with that kind of money to start a business. -
It's really not a respectable profession.
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weed beginner wrote:
I live in Seattle, and I'm hearing each dispensary makes like $250K in revenue PER month.
That's some mind boggling numbers, so I looked into starting one. Unfortunately, the window for applications is now closed, but it got me thinking:
A) First off, why isn't the government allowing more pot retailers to open? Is there some shady dealing going on between existing dispensaries to limit # of retailers to limit competition, in exchange for some kick back?
B) Second, why are existing dispensaries all in some run down, tiny a** shops (very few have legit looking stores opened up)
C) Third, why aren't more people clamoring to start a dispensary? Seems way more profitable than opening another yoga studio, restaurant, etc.
It is called regulation. When an industry is regulated, it enables a few people to make a ton of money while keeping the majority of people out. If selling weed were simply legal, as in no special licenses required, it would cost about as much as tea. -
you put your weed in there wrote:
- Federal government still considers it illegal. They can take everything you have and freeze your assets for no reason at any time.
- Banks wont deal with you or your money because of point 1. So no business loans or even checking/savings accounts.
- Local governments don't want these businesses around so they highly restrict the number of permits. Getting a permit is impossible.
- Local governments/communities don't want growers or disperses in their backyard. Finding a 'legal' place to run your business is very difficult. No one will rent to you, you will have to own the property.
- Startup costs are relatively expensive so you already need to have money to make money. In that process you are risking everything you already have because of point 1.
And because of point 2, these are cash businesses, and they get robbed. A lot.
