THIS is how misinformation starts and grows into a legend. Go back and read the post. While prices will be determined by the market - i said COSTS would be above $300 per ounce in the beginning - and they will be because of the fixed costs of start up of a cultivation operation. I did not forecast prices, i forecast costs. Variable costs to produce and sell and pay taxes for medicine are only $160 per ounce or so, but the dispensary will have to bring in as much as $1 million or more over variable costs to cover cultivation start up costs (most will eventually have to buy their buildings). The typical dispensary is likely to be underwater for the first couple of years selling at $300 per ounce. After that point, the dispensary costs drop dramatically and the cost regulation in the market will force prices down.
There is an AZ based company, maybe multiples, out there offering full cultivation setup at no out of pocket cost to operators, they just want to have their growers and medicine in the facility, etc...
What happens when Will Humble hires a moderator, the
starting price of
up to $500 and ounce, Mr Gaines you personally posted this figure, regardless of your initial investment should theoretically not hold any weight.
It seems Will plans on setting a market value to ensure everyone is operating on the same playing field. Just because someone spent more money than the next guy does not mean patients should be subjected to whatever price solely to help your business come out of the red sooner. There is no problem with making money but at least be honest about the tactics... As I said before, "its your business, run it however you want, not everyone is going to agree with it." If you are spending so so much money on manufacturing, than once again you should really look at how you are producing your medicine. Recently, I heard a possible price of your CFCC AC Unit, I do not want to throw nonfactual info out there but if the price I was told is correct, that would be a good place to start cutting costs, IMO. I could show you three cooling solutions that are probably 10x more efficient and a fraction of the cost. Someone as successful as you should be able to easily acknowledge that there is always room for improvement in every aspect in life. Why not simply strive to have the best gardeners and genetics? Everything else will fall into place with your business background at work behind the scenes..
Let me ask you this:
What if you could double, triple or even quadruple you investment on a pound grown at your facility, would that change your current financial approach?
Do you not already intend on doing exactly that (doubling tripling etc)?
I know a member of you facility who plans on assigning an acquaintance of mine as his caregiver...
This action was spurred almost instantly when the samples were produced, does that tell you anything?
I am not trying to offend you I just think you would be lying to yourself if you did not recognize that CFCC is somewhat behind the curve when it comes to the general knowledge about quality cannabis and its production. You have the resources to open your arms and eyes to almost any service out there, why settle for anything less than the absolute best?
Most likely the 25 mile rule will not get amended in the near future but after the 2012 election, there may be some serious obstacles for dispensaries. Unless the entire AMMA is shut down, patients may hopefully be able to grow again. At the same time, dispensaries need outside producers to succeed, AZ operators just do not realize it yet.