4 ms·
> The people making money are the few politically well connected companies that have growers licenses and the doctors prescribing it. The grow licenses are wort
by flutas 4y ago
> The people making money are the few politically well connected companies that have growers licenses and the doctors prescribing it. The grow licenses are worth tens / hundreds? of millions.
Honestly knowing some of the backend of a grow in a medical only state, the grows aren't where the money is.
The article glances over this very quickly, but real money is in the dispensaries.
(this is from a dispensary angle)
> Carl Giannone, the co-founder of cannabis company Trade Roots in Massachusetts, said an eighth of an ounce used to reliably sell for $55. Now he has to price it near $40.
> “And the scary part is that product that’s selling for $40, I can buy from a large wholesaler for $7.50,” he said.
> “The green rush has never happened,” Luchini said.
Nothing like a 533% markup.
- edmundsauto 4y ago533% markup isn’t all that different than retail, where they use the $1-$2-$4 rule of thumb. $1 to make, wholesale price $2, charge customers $4. Or alcohol, where a $10 wholesale bottle of whiskey will sell for > $100 (20+ shots at $5/shot). Retail is mostly overhead, not product. Something like cannabis, which is cash only and requires extra security, is actually fairly within norms.