List of clubs that rip off vendors in Cali

grannypurps said:
I agree 100%. The problem is trying to get a business loan in this industry...it is not going to happen. Have seen owners try :( There are a ton of obstacles for all involved I suppose. I think threads like this help a lot. When the bad ones are known, people can avoid them.
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I can verify that grannypurps does pay their vendors. I'm not a grannypurps vendor, but know a couple people who have been and they were always paid correctly.
 
grannypurps said:
So I get this sentiment, but I also work at a dispensary. I can't speak for all of them, but I do have some insight. I am not sure what they are supposed to do to make everyone happy and keep bills paid.
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If a dispensary is having trouble paying their bills, they are incompetent.

Sometimes it is not possible to pay all up front, but I would not consider that evil or anything.
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I call bullshit. If that's true, it's due to poor planning on the part of the dispensary. The real reason dispensaries like consignment is because it reduces liability. If they get raided or robbed, it's the vendors who lose money instead of them. That's what consignment is really about.

I think it is very important to pay people when you say you are, and pay in full.
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Which you guys do from what I hear. So I'll give you that.

I also have done some vending and Herbal Cruz is the only place that flat out stole. Some others (Greenway) seem to go beyond the promised payout date with no communication, but eventually pay. I think having a 2-3 week payout period is okay IMHO. What do you guys think? Sorry if this is off topic. Please remove if that is the case.
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No. It's cool. It's important that people have a greater understanding of how this whole system works. While I disagree with what you're saying, it's important to hear things from your perspective too.

I'm going to update this thread soon with a concise list of clubs ripping people off on the first page to make it a better reference tool.
 
grannypurps said:
So I get this sentiment, but I also work at a dispensary. I can't speak for all of them, but I do have some insight. I am not sure what they are supposed to do to make everyone happy and keep bills paid. I thought having a pay out date would be fine, much like invoicing is done in the rest of the business world. I guess with running a dispensary there is overhead like rent and payroll. Those things also can't be used as tax deductions. Sometimes it is not possible to pay all up front, but I would not consider that evil or anything. I think it is very important to pay people when you say you are, and pay in full. I also have done some vending and Herbal Cruz is the only place that flat out stole. Some others (Greenway) seem to go beyond the promised payout date with no communication, but eventually pay. I think having a 2-3 week payout period is okay IMHO. What do you guys think? Sorry if this is off topic. Please remove if that is the case.
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Okay, unfair of me to blanket state it like that. But one should not be surprised by shady dispensary behavior. These people were the illegal dealers before the law passed.
 
Yeah 2-3 weeks? Are you serious? To me thats BS Cuz if ur lb is dank it will be gone in 7 days or less. And they ALL know it.

Stoo being a push over and demand pay out, or your just adding to the fire.
 
skydoh said:
Yeah 2-3 weeks? Are you serious? To me thats BS Cuz if ur lb is dank it will be gone in 7 days or less. And they ALL know it.

Stoo being a push over and demand pay out, or your just adding to the fire.
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I vend to clubs who have a hold period of 7-14 days. But they aren't selling my products, they are using that time to send it to the lab to get tested. That's perfectly fine with me. But I do disagree with the idea of putting bud on consignment so the club can raise enough money to afford to pay you. If a club is in that bad of shape financially, giving them anything on credit is a risk.

If a club claims they need 3 weeks to pay you, offer them a smaller amount. Tell them you'll give them a QP, and all they have to do is call you and you'll bring more over to them. If they say something like "that's not even worth it for us, we'll sell that before lunch", then you've got to wonder why they are claiming to need 3 weeks to pay you.

If they claim to not be able to afford to pay you up front for a pound, but then refuse to take a smaller amount of bud than that, then something is wrong. They have some other motivation for not wanted to pay you up front. Either they are only doing consignment to reduce their liability, or they are using the money they get from one vendor's pound to pay off another (which is exactly what a ponzi scheme is), or they are trying to jack you.
 
I heard some pot shop owners like to get smoke
on consignment just in case they either get robbed by thugs
or shut down by the authorities they won't have
to pay the vendor.
They put your money at risk and not theirs.
 
Dan
if you didn't get the name and addy of the club
I posted lmk and I will give it to you.
I deleted the post to stay anonymous.
 
grannypurps said:
So I get this sentiment, but I also work at a dispensary. I can't speak for all of them, but I do have some insight. I am not sure what they are supposed to do to make everyone happy and keep bills paid. I thought having a pay out date would be fine, much like invoicing is done in the rest of the business world. I guess with running a dispensary there is overhead like rent and payroll. Those things also can't be used as tax deductions. Sometimes it is not possible to pay all up front, but I would not consider that evil or anything. I think it is very important to pay people when you say you are, and pay in full. I also have done some vending and Herbal Cruz is the only place that flat out stole. Some others (Greenway) seem to go beyond the promised payout date with no communication, but eventually pay. I think having a 2-3 week payout period is okay IMHO. What do you guys think? Sorry if this is off topic. Please remove if that is the case.
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I vended at a club for 6 months when it was the first club in Portland....I NEVER WORKED ON A FRONT..I always payed when delivered. But i had LOTS of growers that would just want to leave the meds with me..Those where meds i really didnt want any ways..The true TOP SHELF grower will never have to leave on a front. Out of 100 people that would bring in meds..only a couple where true TOP SHELF and i would want that person to keep coming back to me. I have noticed that the meds in Portland clubs have gone way down hill in the clubs that work on a front..I think that growers have just about had it with the front. Thanks Don for starting this thread, it makes me feel better knowing this is going on every place. And i am not the only grower that thinks it SUCKS!
 
grannypurps said:
So I get this sentiment, but I also work at a dispensary. I can't speak for all of them, but I do have some insight. I am not sure what they are supposed to do to make everyone happy and keep bills paid. I thought having a pay out date would be fine, much like invoicing is done in the rest of the business world. I guess with running a dispensary there is overhead like rent and payroll. Those things also can't be used as tax deductions. Sometimes it is not possible to pay all up front, but I would not consider that evil or anything. I think it is very important to pay people when you say you are, and pay in full. I also have done some vending and Herbal Cruz is the only place that flat out stole. Some others (Greenway) seem to go beyond the promised payout date with no communication, but eventually pay. I think having a 2-3 week payout period is okay IMHO. What do you guys think? Sorry if this is off topic. Please remove if that is the case.
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First off, in the real business world new accounts (the dispensary) don't get credit automatically. Usually there's the initial order, paid at time of receipt, then over time credit is established. Also if one becomes delinquent the account reverts to C.O.D. that no one wants but is necessary to preserve the vendor (grower) from totally loosing out.
 
Milovan said:
I heard some pot shop owners like to get smoke
on consignment just in case they either get robbed by thugs
or shut down by the authorities they won't have
to pay the vendor.
They put your money at risk and not theirs.
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I'd like to toss my 2 cents in here regarding "consignment". The true nature of this beast is the lack of overhead associated with an inventory. Consider the risk a store owner takes when he orders a case of XXXX or whatever. He owns it and has to wait to sell it to make his profit. His profit actually comes from the back end, the last few he sells. If things are slow and it takes him a long time to sell everything, his profit has dropped considerably because of all the other expenses (overhead) he's endured. Home Depot and Wall Mart operate this way. HD will buy several boxcar loads of, let's use Kohler toilets, all the same model & color. They'll get terms like 120 days to pay the bill. They then run a sale on this item and sell it out way before the due date and make their profit without ever outlaying a single dollar for the stuff. They also force a buy-back clause so that whatever doesn't sell, the manufacturer has to take back, no questions, no re-stocking dollar per dollar what was charged originally.
Consignment is purely for the protection of the dispensary and leaves the grower totally at their mercy. I personally do not consign never have, never will. A bird in the hand so-to-speak. It is most likely due to me being the owner of a retail business for many years, got me pretty savvy on this concept. I invest way too much in time money stress and a myriad of additional things involved with growing MMJ and like I wrote before I'd rather keep my hard work and have no money than to consign it out and have nothing of both. Remember the immortal words of the Fabulous Furry Freak Brothers: "Dope will get you through times of no money better than money will get you through times of no dope. For the younger generation on here, we used to call MJ 'Dope" and not weed, pot or anything like these terms.
 
sfttailpaul said:
I'd like to toss my 2 cents in here regarding "consignment". The true nature of this beast is the lack of overhead associated with an inventory. Consider the risk a store owner takes when he orders a case of XXXX or whatever. He owns it and has to wait to sell it to make his profit. His profit actually comes from the back end, the last few he sells. If things are slow and it takes him a long time to sell everything, his profit has dropped considerably because of all the other expenses (overhead) he's endured. Home Depot and Wall Mart operate this way. HD will buy several boxcar loads of, let's use Kohler toilets, all the same model & color. They'll get terms like 120 days to pay the bill. They then run a sale on this item and sell it out way before the due date and make their profit without ever outlaying a single dollar for the stuff. They also force a buy-back clause so that whatever doesn't sell, the manufacturer has to take back, no questions, no re-stocking dollar per dollar what was charged originally.
Consignment is purely for the protection of the dispensary and leaves the grower totally at their mercy. I personally do not consign never have, never will. A bird in the hand so-to-speak. It is most likely due to me being the owner of a retail business for many years, got me pretty savvy on this concept. I invest way too much in time money stress and a myriad of additional things involved with growing MMJ and like I wrote before I'd rather keep my hard work and have no money than to consign it out and have nothing of both. Remember the immortal words of the Fabulous Furry Freak Brothers: "Dope will get you through times of no money better than money will get you through times of no dope. For the younger generation on here, we used to call MJ 'Dope" and not weed, pot or anything like these terms.
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Amen brother...say no to consignment! If we want our prices back, we ALL have to follow and cash only.

From a youngster, thats the greatest quote ever said.
 
sfttailpaul said:
Remember the immortal words of the Fabulous Furry Freak Brothers: "Dope will get you through times of no money better than money will get you through times of no dope. For the younger generation on here, we used to call MJ 'Dope" and not weed, pot or anything like these terms.
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That's just awesome.
 
sfttailpaul said:
I'd like to toss my 2 cents in here regarding "consignment". The true nature of this beast is the lack of overhead associated with an inventory. Consider the risk a store owner takes when he orders a case of XXXX or whatever. He owns it and has to wait to sell it to make his profit. His profit actually comes from the back end, the last few he sells. If things are slow and it takes him a long time to sell everything, his profit has dropped considerably because of all the other expenses (overhead) he's endured. Home Depot and Wall Mart operate this way. HD will buy several boxcar loads of, let's use Kohler toilets, all the same model & color. They'll get terms like 120 days to pay the bill. They then run a sale on this item and sell it out way before the due date and make their profit without ever outlaying a single dollar for the stuff. They also force a buy-back clause so that whatever doesn't sell, the manufacturer has to take back, no questions, no re-stocking dollar per dollar what was charged originally.
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I get that, and it's true. The problem here is that we aren't talking about toilets. We are talking about buds. More comparable to a grocery store buying fruit. They don't get to take it back if they can't sell it.

The real problem here is there are quite a few people who have no business buying buds running dispensaries. They are bad at their job, so they put the risk on the growers to cover up their own incompetence. If a dispensaries buyer can't sell a pound of buds, he shouldn't buy them. It's pretty easy to figure out if a pound will move or not just by looking at it. If more buyers were also successful growers, they'd be able to more accurately asses a pound. But most of them aren't. Most are just random middle men who only know "buy for a dollar, sell for two". They know profit margins, not quality. If a pound of bud is a good price, they buy it. What they should do instead is pay cash up front, but buy less of it if it's bud they can't move quickly.

The dispensaries that pay cash up front or have a very quick turn around on payments (1-2 weeks) almost always have better bud and more customers compared to dispensaries with long consignment periods. These things are directly related. Just like dispensaries who are willing to pay a little more for a pound almost always have better bud and more customers than a dispensary that just hunts for the highest profit margins.

It's funny, but retail prices are almost irrelevant to dispensary success. It doesn't matter if they are charging $45 an eighth or $65. The clubs with the best bud are more successful, it's that simple. The way a dispensary gets better bud is buy paying up front and/or paying a little more. Sure, they make a lower profit margin in a lot of cases, but they get significantly more sales volume. It doesn't matter if you make less money per pound if you're selling twice as many of them.

If dispensaries buy fire bud, it's going to sell. It's that simple. They don't need to worry about it sitting on the shelf too long. There is very little risk involved when buying a pound of premium bud. If dispensaries try to low ball or offer long consignment periods to people with premium buds, that's just a sign that they do not belong at their jobs.
 
can we include clubs on here THAT DONT SEE VENDORS and claim to take care of everything in-house but still have ridiculously high prices
 
biglungs said:
can we include clubs on here THAT DONT SEE VENDORS and claim to take care of everything in-house but still have ridiculously high prices
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Sorry man. This thread is about protecting vendors, not just clubs we don't like. It'd be awesome to have a thread where we talk shit about shady clubs though.
 
Dan Kone said:
Sorry man. This thread is about protecting vendors, not just clubs we don't like. It'd be awesome to have a thread where we talk shit about shady clubs though.
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not really that i dont like i them i just feel that if they are cutting out the middle man and still charging the same price as people who dont they are clearly making larger profits
 
biglungs said:
not really that i dont like i them i just feel that if they are cutting out the middle man and still charging the same price as people who dont they are clearly making larger profits
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I agree. But that doesn't really present a danger of theft to vendors. That's what this thread is about.
 
Hopefully anybody wanting to get into the true business of Dispensing will read this and learn what to and not to do. Good read.
 
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