Will you grow Pot for $48 an ounce?

[hiamps]

Wow, Looking at the Liquor Control Boards web site there is a lot of info...Seems they think people will want to grow pot for $48 an ounce. I just don't see them wiping out the Black Market like that. Who thinks up this crap to sell to the public? From what I can see their pricing model WILL NOT WORK....So much for all the tax money they promised...

From Liquor control board website....
Price
The Office of Financial Management places a price estimate of $12 per gram. Medicinal marijuana dispensary prices on average range between $10 and $15 per gram with some premium products exceeding $15 per gram.
Based on average retail mark-up practices, estimated producer price is $3 per gram and estimated processor price is $6 per gram.
http://www.liq.wa.gov/publications/Marijuana/I-502/Fact-Sheet-I-502-REVISED-11-19-12.pdf

Possession
If enacted, individuals twenty-one years of age or older are legally authorized to possess and use marijuana-related paraphernalia and any combination of: One ounce of useable marijuana; 16 ounces of marijuana infused product in solid form; or 72 ounces of marijuana infused product in liquid form.

[growhand420]

yes because cultivation is more of a art and a passion not a profit but if you look at it as a profit than still yes because i am about to grow 15 plants total cost + seeds fertilizers etc i rang it to about 500-600 dollars and if each plant produces just ounce wich is unlikely then that would be a 120-220 profit yes its low but its still a profit like any other bussness no matter how low the profit a profit is always a good thing

[cannabis-seeds]

at $3 a gram, that's about $84 an ounce unless my math is off?

just under 28 grams is an ounce - 3*28 = 84

i wonder why the processor gets double that - i guess that means if you do your own harvest/trim/cure, it goes up to $252 an ounce (9*28) - a litte better
or does the $6 include the processor paying the grower $3 for the product - that would make it 6*28 or $168 an ounce

not too bad considering you're not expected to sell it yourself - and it's assuming you wouldn't have to worry about prosecution

[hiamps]

Hi, I think you missed what I was meaning. It will always be a great thing to grow your personal 15 but what about the NEW law that may allow some to grow for a living? At $3.00 a gram you would have to grow acres to pay employees and land and it just seems to me the State will open cultivation to those with really deep pockets and most won't be in the game. I wonder if Marlboro Green (non-menthol) is in the works?

Obviously they will have to work something with the fed or their whole system won't work. Just couldn't be profitable enough with less than 100 plants. I just can't see their pricing working, but prices could rise. Things will definitely get interesting, I would advise all to keep their Medical Cards up to date.

[qwisoking]

I see what your saying hlamps but even with that profit margin its relatively easy to set up a perpetual harvest giving you a lb every 2 weeks. I sure hope tx will follow suite.. Why don't you just be happy you can walk around smoking.
I sure hope quality doesn't suffe when it gets more "commercial" I can't wait till I can buy a pack of joints at the store instead of cigs

[growhand420]

there wil be lots of people growin g but i see what you mean there will be a limit to how far you can grow the pot bussiness instead of it being as big as alchohal and tabbacco bussiness it will be like resturants that cant turn into chain a cant be mass produced so this would mean that just about anyone can start because there will be several different stores ...kind of like a lot of family owned store
and you see medical despensories cash flow yes it is extremely higher price then the one your talking about but there will be a higher demand so this will evan it back out so dont worry everything will evan them selves out it is called human "nature" after all.

[boaz]

Wow, Looking at the Liquor Control Boards web site there is a lot of info...Seems they think people will want to grow pot for $48 an ounce. I just don't see them wiping out the Black Market like that. Who thinks up this crap to sell to the public? From what I can see their pricing model WILL NOT WORK....So much for all the tax money they promised...

From Liquor control board website....
Price
The Office of Financial Management places a price estimate of $12 per gram. Medicinal marijuana dispensary prices on average range between $10 and $15 per gram with some premium products exceeding $15 per gram.
Based on average retail mark-up practices, estimated producer price is $3 per gram and estimated processor price is $6 per gram.
http://www.liq.wa.gov/publications/Marijuana/I-502/Fact-Sheet-I-502-REVISED-11-19-12.pdf

...



$3.00






tax
profit


28






25%






1
84
pd
21
63




2
168
pr
42
126




1
84
rt
21
63




4
$ 336


$ 84
$ 252






















license
$ 250
application










$ 1,000
annually





here is some numbers I crunched in excel, that don't post too well but you can read it. that ratio of 1-2-1 for the producer-processor-retail seller, seems a bit odd to me too, unless they are thinking about edibles and such that might have a high cost of processing? but assuming those numbers at $3, here is what i come up with. one oz would cost the consumer $336, of which $84 goes to taxes to the State and $252 is retained as gross profits. then, of course, the cost of the doing business would be netted out so it looks like one would need to produce about four oz's a year to pay the fees and the rest would be left to pay expenses and, one would hope, a profit.

yeah, i'm not sure one could make much cash that way unless they did big volume, which i'm assuming is what will be the case. i wonder how hard its going to be to get a license? and yeah, as was said, if you produce and process your self your looking at about $189/oz gross profit, much better than the $63 of just producing, but i'm guessing these are all just estimates these aren't going to be the law or anything??

good luck. don't wait till the last minute, i've got vacation time coming up. :rastasmoke:

[boaz]

here is some numbers I crunched in excel, that don't post too well but you can read it. that ratio of 1-2-1 for the producer-processor-retail seller, seems a bit odd to me too, so it looks like one would need to produce about four oz's a year to pay the fees and the rest would be left to pay expenses and, one would hope, a profit.


correction: you would have to produce about a lb a year just to have enuff gross profits to pay the license, assuming you only produced it. process it and its about half that but thats still a lot of weed to have to grow just to pay the tax man, i guess it would be worth tho. sure hope those marlboro greens come in white widow ... :rastasmoke:

[Gande030]

It is my understanding that you are not allowed to be involved any more than one step of the process. You can't grow and package or grow and sell retail. Also the 25 percent tax applies to each sale. The grower pays on his sale to packager, packager on his to retailer and retailer on his to the public plus all other applicable sales taxes and business fees.

[Evergreen Guerilla]

It is my understanding that you are not allowed to be involved any more than one step of the process. You can't grow and package or grow and sell retail. Also the 25 percent tax applies to each sale. The grower pays on his sale to packager, packager on his to retailer and retailer on his to the public plus all other applicable sales taxes and business fees.
actually the liquor control board stated that you can receive a license to process and produce but that's the only 2 license option.
FAQs on I-502 | Washington State Liquor Control Board (http://lcb.wa.gov/marijuana/faqs_i-502)

[Clone-1-2]

As soon as they get it figured ou they are comming after the medical side of it as promised by our governor. That should be real interesting!

[catbuds]

It is my understanding that you are not allowed to be involved any more than one step of the process. You can't grow and package or grow and sell retail. Also the 25 percent tax applies to each sale. The grower pays on his sale to packager, packager on his to retailer and retailer on his to the public plus all other applicable sales taxes and business fees.




The tax man always wins. Thats the american way! As long as there are people like me who prefer to patronize the independent business man, it will still be business as usual on the street. Of course we will occasionally buy from a legal vendor, just to have the packaging to slip our street purchase into so it appears we're perfectly legal.

[Lord Indica]

The problem is, wtf are they thinking when they talk about taking away the right of the patient to grow? I take issue with that and I will be damned if I can't grow my own bud! I like the way I have figured out all the nuances that make a fine smoke and I just hate to buy retail and then get black ash or worse, spider mite shit! I just want to grow my own and be left alone, I am so sick of the cops and politicians taking my money because I smoke pot! It makes it hard to trust a cop or a politician anymore because they have caused me so much grief in my friends and family circles! I do not sell weed, I just work, smoke a little bud and try keep my wife happy like anyone else. But it seems like no matter what, the cops and the politicians are holding out their hands under the threat of putting one of us in a cage. Now that we finally can legally grow our own they want to take that away!! Why? Who's idea was turning the sick back into criminals anyway? Whoever they are I think they suck! Whew, sorry about that rant. Peace

[hiamps]

Well I will find out first hand as I applied for Producer and Processor.....

[boaz]

nice! congrats and good luck. I read somewhere that the Colorado shops could be completely sold out in about 5 days after opening. I would not be surprised.

[catbuds]

Lord Indica, you're very much entitled to rant. I do it often, & do it very well. Never apologize for speaking the truth, for the truth shall set you free. If we're not outspoken, then we're sitting back, letting the government control every nuance of our lives. I say speak out & be heard! I like what I'm hearing! ~~~PEACE!~~~