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Legal American weed is ruining the Cartels' business model

Posted on 12/1/14 at 9:16 pm
Posted by Jim Rockford
Member since May 2011
98137 posts
Posted on 12/1/14 at 9:16 pm
LINK

quote:

"Two or three years ago, a kilogram [2.2 pounds] of marijuana was worth $60 to $90," says Nabor, a 24-year-old pot grower in the northwestern Mexican state of Sinaloa. "But now they're paying us $30 to $40 a kilo. It's a big difference. If the U.S. continues to legalize pot, they'll run us into the ground."
Posted by meauxses
Member since Nov 2012
2693 posts
Posted on 12/1/14 at 9:18 pm to
$60-$90???
Posted by dodgeviper
Bunkie
Member since Nov 2014
629 posts
Posted on 12/1/14 at 9:18 pm to
Heroin and cocaine are still making a killing. Whatevs.
Posted by StickyFingaz
Austin
Member since May 2013
13483 posts
Posted on 12/1/14 at 9:19 pm to
quote:

a kilogram [2.2 pounds] of marijuana was worth $60 to $90


That must be the shittiest weed known to man
Posted by HempHead
Big Sky Country
Member since Mar 2011
55438 posts
Posted on 12/1/14 at 9:19 pm to
quote:

Two or three years ago, a kilogram [2.2 pounds] of marijuana was worth $60 to $90


Holy shite, that must be some dirt.

3k for a lb of high quality is a decent price on the East Coast.

ETA: At, let's say, 75 for 2.2 lbs....That is slightly over 61 ounces. You could sell an ounce for $10 bucks a pop and make a killing. That does not make sense.
This post was edited on 12/1/14 at 9:22 pm
Posted by CaptainPanic
18.44311,-64.764021
Member since Sep 2011
25582 posts
Posted on 12/1/14 at 9:20 pm to
Grass is for brainless hippies. Jerry's Dead. Phish Sucks. Get A Job.
Posted by Jim Rockford
Member since May 2011
98137 posts
Posted on 12/1/14 at 9:21 pm to
quote:

That must be the shittiest weed known to man


That's what they're paying the farmers to grow it.
Posted by tigerinthebueche
Member since Oct 2010
36791 posts
Posted on 12/1/14 at 9:22 pm to
Posted by BRgetthenet
Member since Oct 2011
117678 posts
Posted on 12/1/14 at 9:22 pm to
Not so fast my friend.
Posted by eScott
Member since Oct 2008
11376 posts
Posted on 12/1/14 at 9:22 pm to
Must be home grown to the bone.
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73142 posts
Posted on 12/1/14 at 9:23 pm to
quote:

3k for a lb of high quality is a decent price on the East Coast
3k for a pound is not a decent price around here
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7871 posts
Posted on 12/1/14 at 9:24 pm to
Farmers are low man on the supply chain and there are plenty to go around. The money is in distribution. It's probably $100/oz shwag on the streets.
This post was edited on 12/1/14 at 9:27 pm
Posted by HempHead
Big Sky Country
Member since Mar 2011
55438 posts
Posted on 12/1/14 at 9:26 pm to
quote:

3k for a pound is not a decent price around here



I'm not going to divulge much, but outside of certain areas of the South, that is a price that most mid-level bulk distributors would be okay with. If they sell at $300 an ounce, they can make $5,400. Even at $250, they're making $4,000.
Posted by GreatLakesTiger24
COINTELPRO Fan
Member since May 2012
55554 posts
Posted on 12/1/14 at 9:29 pm to
just coped some northern lights : orko :
Posted by eScott
Member since Oct 2008
11376 posts
Posted on 12/1/14 at 9:30 pm to
$300 an ounce
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73142 posts
Posted on 12/1/14 at 9:31 pm to
yea im sorry, your numbers are just way off
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 12/1/14 at 9:31 pm to
Those ares bulk prices, stoners.

If I buy a Ford F-150 one off, I'm going to throw down some change. But if I want to buy a dozen of them, then I'll get volume discounts that reduce the price per truck. You're also paying retail in one off or "end consumer" transactions.

Distributors utilize volume discounts when moving more product. They value higher volume buyers-cartels in this example-as they move more product more quickly and in exchange for faster liquidation they offer a sliding scale of discounted prices. They take their profit in volume and reduced time for theirs inventory to sit around, increasing risk and security costs in the process.

Retail salespersons-Snoop, D-Money and your other connections-mark up at the end point transaction to the consumer to increase their profit margin.

I'm shocked pot aficionados have a difficult grasp of basic business principles.
























































Not.
Posted by HempHead
Big Sky Country
Member since Mar 2011
55438 posts
Posted on 12/1/14 at 9:33 pm to
quote:

yea im sorry, your numbers are just way off



I don't know what the market is in Louisiana, I'm just going off of what I know in Alabama. The market in NC, particularly around Asheville, is favored towards consumers.

You can sell bud at $25 a gram to fratstars in Tuscaloosa, no problem.
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73142 posts
Posted on 12/1/14 at 9:34 pm to
quote:

I don't know what the market is in Louisiana
i dont either, I dont live in louisiana
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7871 posts
Posted on 12/1/14 at 9:34 pm to
Are you saying $300/oz is too low or too high?
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