Micro licensing fees...
- Thread starter TheRealDman
- Start date
GroErr
Well-Known Member
Not surprising, it's all based on cost recovery and they spend money like there's no tomorrow. Looks like around $10k to get in and $5k/year for a single micro license. What's not clear in their examples is if someone is holding multiple licenses like a micro-grow and micro-processor would be paying double or get some form of break.
There's going to be a lot of researchers out there
torontomeds
Well-Known Member
Not bad at all. It is super fair for Micros. LPs have higher overall overhead, plus higher fees, seems good to me. Like Bigmanc said paytoplay. Im down. Heck hopefully this will allow HC to hire more people and push the apps through.
GroErr
Well-Known Member
It's sad really, the cost to get in or play will be a big part in converting BM or grey market growers, this is not helping that situation at all.
money
pitter patter ....get at er!
torontomeds
Well-Known Member
What is so bad about the fees? You all seem like a bunch of cheep asses. 10k to get a micro license? You guys can't recoup 10k in a year? lol.
GroErr
Well-Known Member
Between the license fees, operational costs (rent, hydro, equipment depreciation, testing, security, reporting, supplies etc.), more competition, and lower margins because you're now selling to middlemen, small players will be lucky to make a living, if they're really good at it. Compared to the current BM, yes, the system is skewed towards larger players and little guys will have a tough go. I've run P&L's under a bunch of scenarios, I'd invest in a variety store before buying into a micro license, particularly in a province like Ontario. Some like BC, AB, and SK may have a chance at scratching out a living, in provinces that have distribution and retailing locked down, you may as well just throw your money in the bank, you'll earn more in interest.
cannadan
Well-Known Member
crafter's will need to let the big guys ride out their storm....before getting involved....
bright side is you can be honing your craft....all while watching big cannabis stumble all over itself
and most will fail or be bought..
working on craft quality strains will be what sets your business apart from the others....
bright side is you can be honing your craft....all while watching big cannabis stumble all over itself
and most will fail or be bought..
working on craft quality strains will be what sets your business apart from the others....
CannaReview
Well-Known Member
I think BC said they want to get rid of the middle man Micro > LP > BC Distribution Board and have Micros sell directly to BC. I think the reason they said not yet is that LP have a testing facilities and BC wants micros to have their own testing system eventually. I wish I could find the news article where it said that.
GroErr
Well-Known Member
The way I read it in the final regs, in BC, the Distribution Board is the middleman, Lp's or Micro's would sell to them, then they'd sell to retailers, including their own provincially run stores.
GroErr
Well-Known Member
Here's the FAQ for BC, it's in the first paragraph.
What's not clear but I believe is compliant with the federal rules is that Micro Growers would sell to Micro processors. Micro processors would sell pre-packaged product to the Liquor Distribution Branch (LDB), who will control all distribution, including sales to any retailers. Of course you can also be a Micro Processor, if you fork out the additional licensing fees
What's not clear but I believe is compliant with the federal rules is that Micro Growers would sell to Micro processors. Micro processors would sell pre-packaged product to the Liquor Distribution Branch (LDB), who will control all distribution, including sales to any retailers. Of course you can also be a Micro Processor, if you fork out the additional licensing fees
cannadan
Well-Known Member
and now that all the weedsels are all in....and established with certain size licences.....eventually these move to a quota system
where buying quota is the only way to increase your holdings...small farmers struggle with big quota debt while the large producers
sit there with huge grand fathered quota allowances....making certain they have a future in this market....even if its just to sell quota...
hope i'm wrong......
where buying quota is the only way to increase your holdings...small farmers struggle with big quota debt while the large producers
sit there with huge grand fathered quota allowances....making certain they have a future in this market....even if its just to sell quota...
hope i'm wrong......
GroErr
Well-Known Member
Yep, that's essentially the model. If it were truly open you could build (grow), package, market, and sell your product based on it's own merits. It's being setup to be a commodity and that gives the bigger players with deep pockets the edge. It would be like having a small family chicken farm and competing on price with some big conglomerate out of the US. You better have an edge and be able to market that edge or you're done. You can try selling to the larger players on contract for a specific product, that's probably your best bet. But it's no different than any other business, you have to look at the numbers, and walk away if they don't make sense.