Yeah, there are no other expenses involved, like nutrients, licensing, insurance, taxes, etc etc etc... Seriously, if marijuana could be grown and sold for $2.97 an 1/8th, don't you think somebody would already be doing that? Give it a shot, see where you land.
Dear "Are you kidding me ?"
Clearly you are the one who needs a math refresher. You first tried to come up with numbers that wouldn't work and in the process you successfully demonstrated that even an idiot like you could produce 113 pounds in this site for as little as $297 per pound, close to what I estimated. Great job proving my point with your insane numbers:
electric: 12240 ($0.10 x 340 x 12 x 30)
labor: 10300 ($12/hr x 40 hrs x 5 people)
cooling: 6000 (some magical number you came up with)
divided by 113 pounds
$297/pound or $2.31 per eighth.
Thanks again for proving my point.
Yes, it will take a ton of money but nobody said it would not. If you can build my garden for less than $50/sq ft I'll hire you. That's $500,000 in build-out alone. (Figured I'd help you since the math thing seems beyond your grasp).
Further, you should know, there are MUCH MUCH bigger gardens in Colorado than 10,000 sq ft already operating. There is one company alone who controls almost 5 acres of indoor grow space, and they are driving the price down in their several retail store fronts.
Now tell me again why the price per eighth is still above $25 in most stores. Don't waste your time because it won't be for long, I can promise you that.
And shame on you for not actually bothering to do actual calculations before attacking someone with an actual business and an actual business plan. Go crawl back under your bridge, troll.
you have to wonder why is it taking so long government and drug companies we all knew it works
Chris does not really seem to have the business acumen to make this fly. First off, he is bad at math and has no viable business plan.
He want's to put 340 lights into a 10k warehouse. 340 1,000 watt bulbs is 340 killowatt hours 12 hours a day x 31 days @ 10 cents a kwh. That's $12 k just to power lights. That many lights are going to require a ton of AC, probably another $6k in just electric for that, not to mention the thousands for giant AC units and installation. 5 people to run the garden, trim your mythical 113 pounds a month, then transact your 14,000 1/8ths is laughable.
Of course the plants in his "budget" include no medium or nutrients to grow the plants with. He also seems to be missing the capital investment... just a ballast, bulb, and hood will run about $500 each, so there is another $170,000 . Don't forget to pay the licensed electricians to install all that. You can't legally do it yourself if you want to actually get a certificate of occupancy. Additional equipment will probably run you as much as the lights. ETC ETC...there is so much that you are not seeing,
So in short you will need the better part of a million bucks to get this off the ground. Remember, it's going to be months of construction, then more months to crop out the first round. None of those initial months have any income. Hope you have enough in the bank to get you over the hump. Oh, and maybe you didn't know that you have to have this cash up front. Banks will not loan to you. Independents will not loan to you either. A recent court ruling indicated that contracts made in this industry are null and void due to the illegality of the venture. Nobody but the mob will loan you money with only a hope that you will pay them back.
How do you get the number of patients required to support this operation.For each 6 plants you must have one patient assigned. Will a patient drop their current dispensary and sign up with you when you have nothing to sell them but a dream of cheap meds grown with ladybugs?
Perhaps Chris did not notice all of the Dispensaries closing down due to lack of profits at the even the current prices. But no worries, I'm sure he can do it better than the experts already in the industry.
LOL... good luck Chris! And shame on you Independent for posting this blather from a delusional wannabe pot farmer without doing any real background research.
"$3 an 1/8th? with 10,000 square feet of retail space, $30,000 in licensing fees?"
The article states very clearly that the cost to grow is only $400 to $700 per pound which equates to $3.12 to $5.47 per 1/8th.
In a 10,000 foot space you could run 340 lights easily producing 113 pounds plus per month (and much more). The rent should cost less than $5000. Five full time employees at $15/hr would run another $12,900 per month. Electricity might run $7000. Licensing only runs about $12k not $30k so that's:
$5000+$12,900+$7000+$1000 = $25,900 in expenses per month
$25,900 / 113 pounds = $229 per pound or $1.79 per eighth.
Prove the math wrong, please.
$3 an 1/8th? with 10,000 square feet of retail space, $30,000 in licensing fees? good luck with that. it's amazing how fools and folly go so well together.
Billy Bob - Please clarify for me - is it the conservatives and/or the Republicans that control the current Justice Department which has waged its own personal war on the MMJ laws of California and Colorado?
Didn't think so. But you sure got your little rant in anyway.
I dont smoke marijuana, but I dont see a problem with it and it should be legal. As for all of the republicans that are suppose to be anti-regulations.....they need to back off and let the free market do what it may. If there isnt a demand for marijuana, this business will go belly up and if there is a demand this business will prosper. Oh, yea...the republicans are anti-regulations when its something they like and they want to regulate a business out of existence if its something they dont like. Typical for the conservative...they want it both ways. Let the free market and the people determine if marijuana should be sold like liquor....not the bible thumpers and conservatives.
nice write up, as usual, BC. if anyone missed the event, they can watch in anytime at http://www.youtube.com/watch?v=fEDRPye9XAw…
it was a great town hall. nice work C4CPR for hosting the event!
if you have more questions, you can reach us at www.gogreencross.com 24/7.
Try and try again. PTSD should be a qualifying condition. Our case experience has shown results with both members of the 'greatest generation' as well as our most recent warriors returning from Iraq and Afghanistan.
The post about Dr. Meola and marijuana is unfounded. Dr. Meola cannot determine that THC was the cause of death in the chocolate brownies consumed by the animals.
INVEST in the full legalization movement with stock symbol MJNA (Medical Marijuana Inc) -- With the most recent polls surging in Washington (37 and 23 point leads) and Colorado (11 point lead), ALL with majority support, there's no telling where this will go in November!
I'm flattered you copied most of our group name! Thanks!
Join a new group "Coloradans for Cannabis" https://www.facebook.com/groups/yeson64/
This group is for all Coloradans, not just the small minority who are in the Colorado medicinal cannabis system.
The Colorado medical marijuana industry has generated more than $181 million in revenues since 2010 and last year employed 4,200 state-licensed workers.
The amount of money Denver collected from the cannabis industry in 2011 was nearly enough to cover the city’s Parks and Recreation Administration budget.
And MMJ businesses account for roughly 10% of all local sales tax in the tiny Colorado mountain town of Nederland.
MMJ Reports: - The sale of medical marijuana created nearly $10 million in annual tax revenue last year for the 10 cities studied, including $5.2 million in local and $4.5 million in state taxes.
- Cannabis businesses in Denver recorded $82.2 million in sales last year, a 55% increase from 2010. As a result, the city collected $3 million in tax dollars from the industry, up from $1.9 million a year earlier.
-This year, the Denver cannabis industry has racked up $45.7 million in revenues through July and sales tax of $1.7 million – on pace to come in slightly lower than 2011 but still strong.
MMJ Reports: - Denver was also home to roughly 400 dispensaries and infused product manufacturers as well as another 484 cultivation centers at the end of 2011. Those businesses paid more than $6.1 million in license and application fees.
MMJ Reports: - Colorado Springs MMJ businesses reported $30.8 million in revenues, pumping $771,000 into the city’s coffers. That money was enough to cover the refurbishment of two fire engines and three aerial trucks – which proved critical this summer as the city battled a severe wildfire.
MMJ Reports - Boulder ranked as the third-biggest MMJ city in the state, with the cannabis industry generating $22.3 million in revenues and $760,000 in local taxes last year.
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