Grower vs Dealer: who should make more?

Yeah yeah I know how selling and growing usually works. The grower sells to the dealer, who inflates the price and, well, deals it. But say that it isn't being run the way it usually is. Say it's being run like a bank (kinda.) the grower fronts an ounce or two to 3 or 4 friends who happen to know how to sell. Assume the friendealers don't try to rip the grower off. (this method is a really common thing around here) Say each dealer gets $100 for that ounce (not a realistic price I know.) this 100 is then split between the dealer who sold it, and the grower. How, in your opinion, should it be split up? I know people who go 50/50, 60/40, 40/60, hell all the way to 85/15. But what do you think the ratio should be? And in who's favour?

Who cares. The grower can sell for what he wants to sell for, and a dealer can sell for what he wants to sell for. They all decide their own margins based on who they know. Why should there be some link between the two profits? Once the grower has sold his weed, he's sold his weed, job done. If the grower is then thinking about how to maximise the profit based on the street pievemeal value, then the grower is simply turning into a greedy cunt

Generally when you buy something for resale your shooting for a 50% markup,keep in mind that usually there is a middleman between the farmer and the dealer do it would go through something like 3 people before hitting the end user,all making their money.

Alexorcara said:

Yeah yeah I know how selling and growing usually works. The grower sells to the dealer, who inflates the price and, well, deals it. But say that it isn't being run the way it usually is. Say it's being run like a bank (kinda.) the grower fronts an ounce or two to 3 or 4 friends who happen to know how to sell. Assume the friendealers don't try to rip the grower off. (this method is a really common thing around here) Say each dealer gets $100 for that ounce (not a realistic price I know.) this 100 is then split between the dealer who sold it, and the grower. How, in your opinion, should it be split up? I know people who go 50/50, 60/40, 40/60, hell all the way to 85/15. But what do you think the ratio should be? And in who's favour?

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Let's simplify this. The grower is a wholesaler, the dealers are retailers. Like any business transaction, its up to each party involved to decide what they need to make them happy, negotiate for it, and get it.

That would be true of a traditional distribution model, where the dealers effectively pay wholesale prices for the product (determined by the wholesaler), and can charge whatever they like for it in retail sale (to the point that the market can bear). Or it could be a "credit" model, where the wholesaler expects to get back a portion of the retail.

The wholesale/retail ratio "should" be whatever makes the respective parties happy, period. If the retailer is buying larger quantities, he should expect a slightly better per/quantity price for economy of scale.

As a place to start the discussion, 50% markup isn't an uncommon ratio between wholesale and retail, but that depends on all kinds of market related factors. If the dealers are taking on more risk, they can reasonably expect to get paid more to cover that risk.

Now, as to the business model, "credit" type business models only work under certain circumstances. In the illegal drug trade, since credit disputes can't be taken to court, they usually only work when the one extending the credit also has the "muscle" to enforce collection. Needless to say, since most growers aren't budding (get it? ha!) mafiosos, as far as I know, things are generally not done this way. If I were a commercial grower (and to be clear, I'm not, never have been, and never will be) I'd insist on getting paid up front for whatever I grew. If the retailers know how to inflate the prices to get more for the product, good for them. Likewise, if they lose/smoke/or can't sell the product. . .again, their problem, not mine.

Some growers are also the dealers, dealing it out at street prices. It is not uncommon for a grower to make $500 an ounce.

NoDrama said:

Some growers are also the dealers, dealing it out at street prices. It is not uncommon for a grower to make $500 an ounce.

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The only way I could possibly make that here in Southern California is to gram it out.

That's what he saying unless he knows folk who pay $500+ on an ounce

Just add the costs it took to produce the product pots ,dirt,nutes,electric,ect. And that's your material you'll need to make that back atleast to break even now take what ever is left over and smoke it your in the wrong state of mind if your trying to get rich by growing pot in an area where everyone does it the differnce between you and them is there licenced and can unload it at the local dispenery not to mention the risk involved in trusting your freinds not to snitch if they get pooped growing it carries a way heavier penalty then gettin caught with a couple of grams and if you just sold it to thoose 3 or 4 freinds you won't have to split any profit lol all your doing is selling it at half the price but relying on them to pay you when they want more your freinds are taking advantage of you now you just have to think of a way to cut them off without them robbing you gl

i think the grower should make the most since he/she is taking the bigger risks involved.

bigbillyrocka said:

i think the grower should make the most since he/she is taking the bigger risks involved.

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Maybe. . .maybe not.

That depends how you're growing, and how you're selling.

If you're hustling trying to sell lots of small bags on the street, risk of arrest or rip-off can be pretty high.
That's potentially quite a bit more risky than growing a few plants secretly and selling the product to a small number of dealers you know well.

How do the two numbers correlate?

I'm a grower - I front out an oz @ $150 - you owe me $150 after you sell the oz. Now you can sell the whole zip for $200 and make $50 or you can sell $20 grams and make $410 after paying me back. Whether you make $50 or $410 is your own business, all I care about is my $150 for the oz I fronted you.

Dealers have the power to make more money.. I have personally experienced the mj market in my non mmj city decline and become a shittier place only because growers are trying to maximize their profits.. watching too much scarface. All growers should handle their business like Gastanker because if they dont and they hear about their dealers making $410 an oz and want some of that cash and up the price.. well.. the dealer is only going to re-up their price rather than taking the hit. people sell bud for a price that depends on what they received it for. yes growers have that "I take a greater risk" excuse but I've honestly gone mad watching the prices of bud increase in my city only because of growers greed. hence - why I've started growing

the grower (wholesaler) should not bitch if the (dealer) retailer makes a good cut or doubles his money...as a grower... it only cost us mabey $2 a g to grow weed...

so when a grower sells to the retailer for $5-6 a g .....they are making more than 100% profit...why shouldnt the retailer/dealer make atleast double the $$$



I sell my bubba to my local MMJ store for $175 a oz... who inturn charges $12 a g....makes $336 a oz....profit $161 minus taxes and overhead ...lucky to see $100 profit from a oz

My cost for the oz about $55..... so im making about $120 tax free on the oz profit after growing expenses


Retailers should be required to give all suppliers/growers a receipt and a 1099...... after all it is a legal business if done right and growers are independant contractors UBI ##s should be a requirement

colonuggs said:

the grower (wholesaler) should not bitch if the (dealer) retailer makes a good cut or doubles his money...as a grower... it only cost us mabey $2 a g to grow weed...

so when a grower sells to the retailer for $5-6 a g .....they are making more than 100% profit

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Speak for yourself costs me 25 cents a gram to grow

tip top toker said:

Speak for yourself costs me 25 cents a gram to grow

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And that proves my point even more....if it only cost you 25 cent to grow a g ($7 a oz) and you get $150- 175 your making way more in a profit % than the dealer.... your getting 1000s% profit

Just our electricty bill for our warehouse grow is over $3000 a month... rent another $2000 plus supplies looking at 5-6 grand a month


.25 cents a g to grow it??? does that include your rent... thats a cost.... power, water, suppiles...you have to factor all that in your operating/overhead expenses

Alexorcara said:

Yeah yeah I know how selling and growing usually works. The grower sells to the dealer, who inflates the price and, well, deals it. But say that it isn't being run the way it usually is. Say it's being run like a bank (kinda.) the grower fronts an ounce or two to 3 or 4 friends who happen to know how to sell. Assume the friendealers don't try to rip the grower off. (this method is a really common thing around here) Say each dealer gets $100 for that ounce (not a realistic price I know.) this 100 is then split between the dealer who sold it, and the grower. How, in your opinion, should it be split up? I know people who go 50/50, 60/40, 40/60, hell all the way to 85/15. But what do you think the ratio should be? And in who's favour?

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You're really confused about dealing. Rule number one...don't ever front weed to ANYONE for ANY reason. Rule number two, it's none of your concern what happens to it after it leaves your hands, you get your price, they get theirs. If you think they are making more than you then up your prices, they will either buy from you or go somewhere else. For some very important information, re read rule number one. If you insist on fronting then just charge whatever you want, like, 200 an once and tell them "I don't care what you sell it for, I want 200 an ounce". But again, you should NEVER front for ANY reason!

I grow where i live. It's not a cost because growing is not my income. My job pais for all my homely needs. My grow cost involves water, nutes and light fan and pump, there is no other expensive involved

You have to rent a bigger apt to be able to do it, or you're sacrificing space. It's not costing you money right now, but theoretically it is.

Growing profits are determined by risk and labor, dealing by risk alone. Growing is a million times more work than dealing. Maybe it costs you $0.25/g to grow, but it's certainly taking you more than $0.25 worth of time at minimum wage to grow.

purklize said:

You have to rent a bigger apt to be able to do it, or you're sacrificing space. It's not costing you money right now, but theoretically it is.

Growing profits are determined by risk and labor, dealing by risk alone. Growing is a million times more work than dealing. Maybe it costs you $0.25/g to grow, but it's certainly taking you more than $0.25 worth of time at minimum wage to grow.

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You are making assumptions. First, in terms of labour, i spend 5 minutes a week tending my plants, secondly i don't have t rent a bigger place, i decided to make use of space that was not used. Third i'm self employed, i'm worth what i'm worth, i happily work for free when i feel like it, i have no minimum wage. Growing for me takes absolutely no effort, and i can move the whole lot in 30 minutes if i want, dealing is a whole different boat. Please don't try and put me straight on how my life works.

Where I'm at 300 a z-is going up this season!,,,Called Inflation and killer Bud's,,,But I'm not a dealer,,,Fuck big bussiness.............