But in the end, it comes down to loyalty and marketing: “With beer and wine the marketing and branding is important but the flavours really contrast. Marijuana strains vary, but in terms of actual flavouring there may be less variation. So it has to do with branding.”
A marijuana field. Photograph: Stephanie Paschal / Rex Features
There were, of course, “various growers doing it long before it was legal” but even pot veterans find their expertise distinctly lacking. “People have done the best they can given the resources,” Adams says – but growing marijuana for personal use or illegal sale isn’t the same as running a professional operation. “I’ve noticed that there is a pretty big labor shortage in the marijuana industry,” says Adams. “That’s one of the major problems we’re facing right now: there’s no training anyone can take.”
4. Build a boutique brand
The course promises to be a rigorous survey of the landscape of marijuana production and sale, educating prospective growers in everything from irrigation to marketing.
“I’ve done a lot of consulting work,” Adams says, “and one of the main issues that I see, especially in startups, is that there’s a knowledge gap between the marketing guys and the people on the ground. The people who work in the facility really need to be able to communicate with the patients and marketing side of things, and vice versa. It’s important that both sides understand each other.”
For the prospective grower that means knowing both the production side of the industry as well as the sales: you’ve got to be as good at producing pot as getting someone else to pay for it and smoke it.
Legal in Canada … for medicinal purposes. Photograph: Alamy
"I feel like the margins are shrinking, and that the people who got into the industry early were able to realize huge profits," he says. "I think going forward it's still a profitable business but practices just need to get better. I want to be a boutique facility—7,000 square feet as opposed to some in the state that are 200,000 square feet." In the end, he hopes to produce 90 pounds per month in flower and have it retail for $200 an ounce in Denver and around $300 in the mountains.
"Twenty years from now you won't go into a store and ask for a gram of Khalifa Kush Bubble Hash, you'll ask for a pack of it, or a box of it," Miller says. "Everything will have been sized accordingly. The measurements by which it's sold will have changed. As soon as there's federal legalization, the tobacco, alcohol, and pharmaceutical industries will all get into cannabis."
Eddie Miller is one of the guys who has a vested interest in seeing small-scale entrepreneurs like Franciosi succeed. The marketing professional, who built his first website in his parents's Long Island basement at age 16, is one of the new breed of weed enthusiasts, almost evangelical in his passion for both kinds of green. He tells me he thinks it's not a bad idea for kids to skip college and head to California or Colorado, and that he knows a guy who just invested $4.5 into the cultivation side and hopes to make it all back in the first year, and that the most profitable sector in pot is technology—which is why he's the CEO of InvestInCannabis.com, a company that aims to sell infrastructure to fast-growing weed companies.
ORIGINAL REPORTING ON EVERYTHING THAT MATTERS IN YOUR INBOX.
"There's a guy I sell an ounce to for $200," he tells me. "He'll literally sell the ounce to some other dude for $220, and it's an easy $20 for less than 30 minutes of his time, so he'll come back and do it again right away. Sometimes it feels like you're not even selling weed."
Much like the illegal weed industry, the legal one seems to run on Monopoly money.
But were any of those dealers I knew making any real cash? With so many weed dealers roaming America's campuses and 7-Eleven parking lots, is the market too crowded? And has the loosening of weed laws helped or hurt dealers looking to get rich? To find out, I hit up people in both the illegal and legal marijuana trades to see who—if anyone—was cashing in.
Instead, he found starting a farm of his own difficult. His first opportunity came in the form of a family friend who figured Franciosi was responsible enough to entrust with a $300,000 investment. The idea was to control the product from seed to sale, eventually opening a storefront. But it soon became apparent they didn't have the funds to build that kind of operation.
Lets say i started selling. at this stage i could probably only pay for a quarter-ounce (50 bucks in my area) right now,, and for selling completely legit i would only make 20 bucks profit from that quarter (if i didnt smoke a bunch of it)
You buy a product, you add a markup, you sell for profit.I could get really technical and talk about how consuming your stock instead of selling it will lower your profit and possibly lead to loss
As someone above said it’s all about the profit margin, don’t just try and get the best bud possible. Try and get the best DEAL possible on whatever quality bud is available. Have cheaper prices then your competitors, they make more in one sale and leave people feeling ripped off then those people become steady customers to you and you make more money over time selling as much product as possible.
This thread has to be a joke,anybody who smokes & wants to sell for profit but needs help figuring out the business model is one of two things,choice #1 is that he is a 13 year old,choice #2 a guy who recently immigrated from planet Krypton.
First of all smoke less.. The reason one would feel like they’ve made nothing after buying a quarter for 50 dollars and selling it is probably because he smoked more then 2 grams and actually aquired a loss.