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re: How does one get into the local LEGAL marijuana business?
Posted on 1/23/25 at 11:23 am to Donkus
Posted on 1/23/25 at 11:23 am to Donkus
quote:
Good Day Farms just opened two new locations in S'port/Bossier, one being a completely new building.
This is the problem. Everyone is Louisiana has to buy from guess…Good Day Farms (or another LA approved vendor, which there is only 2 more).
The mark up is insane they have to issue. It’s $80 for 10 5mg gummies on the northshore. That’s $20 when I was in Montana.
2
Posted on 1/23/25 at 11:23 am to Donkus
quote:Personal business experience. We deal with a lot of vendors/suppliers in that industry.
Source?
Here's a Forbes article about it if interested:
LINK
quote:
Only 27% Of U.S. Cannabis Businesses Are Profitable
High taxes are partially to blame for the low rate of profitability. According to the announcement, some cannabis businesses in the country are paying an effective tax rate of 52.5%. The proposal to reclassify cannabis would result in a lower tax burden and increase cash flows, the firm predicts.
Tax write-offs—perhaps transforming if cannabis is rescheduled—could change everything for cannabis businesses. Currently, tax code section 280E restrictions on cannabis businesses make it difficult to stay afloat.
"Unfortunately, many cannabis businesses continue to struggle financially as a result of the punitive tax measure known as IRC Section 280E as well as limited access to financial services,” says Michelle Rutter Friberg, director of government relations at the National Cannabis Industry Association (NCIA).
Posted on 1/23/25 at 11:40 am to Napoleon
Good luck trying to break through the good day farms monopoly
Posted on 1/23/25 at 11:46 am to Napoleon
You dont. There are very very few licenses in the State, owned by just a few folks. Those folks have the ability to expand to adjacent parishes in their protected areas. You woulda needed to get into it long ago, and the awarding of the licenses were very, very competitive.
Posted on 1/23/25 at 11:48 am to Voldemortnose
quote:
The mark up is insane they have to issue. It’s $80 for 10 5mg gummies on the northshore.
Not sure if you're incorrect or prices vary alot, but at Crescent on the Southshore 10 20mg go for $40.
Posted on 1/23/25 at 11:50 am to Napoleon
quote:
Dammit 14 years later and I'm still salty i didn't listen to Wikitiger and put it all on bit coin.
quote:
How does one get into the local LEGAL marijuana business?by Napoleon
Always 14 years behind the profit.
Do better.
Posted on 1/23/25 at 11:53 am to KamaCausey_LSU
quote:
You don't. Unless you're politically connected
Your entire post is spot on, especially the first sentence. It's a club that they'll let you know very quickly that you are not part of. Even getting into the industrial hemp side of things takes years just to get a foot in the door.
quote:
Must be nice to hold exclusive rights and control supply, distribution, and sales for an entire industry
Right? Way to create a monopoly, state legislature.
Posted on 1/23/25 at 12:15 pm to Napoleon
Bribery
Posted on 1/23/25 at 12:16 pm to Napoleon
Seriously, though, I have a friend who transitioned from IT to this route (the legal medical side, that is) in recent years. He told me his long, meandering story about how things came about. Said he's had to delegate day-to-day operations due to having to spend so much of his time lobbying at the capital. Sounded like it's become a big headache for him. Like all things government has a hand in, if government hasn't already picked its winners before the start, it will eventually.
Posted on 1/23/25 at 12:17 pm to udtiger
quote:]
Bribery
Facts.
Posted on 1/23/25 at 12:19 pm to Napoleon
quote:
All the weed is grown by lsu or southern.
Its "supposed" to be grown by LSU or Southern. I would be stunned if 50% of retail inventory came from those places. Its cheaper to buy from an off the books grower and in most cases a more potent product.
Posted on 1/23/25 at 12:29 pm to The Mick
I highly doubt this.
GDF has taken over the state with legal weed.
GDF has taken over the state with legal weed.
Posted on 1/23/25 at 12:30 pm to Voldemortnose
Gdf is pretty high. I guess $30 an 8th isn't that bad but it's not Colorado prices either.
Only good thing is $30 is $30. There isn't that 25% tax Colorado has.
Only good thing is $30 is $30. There isn't that 25% tax Colorado has.
This post was edited on 1/23/25 at 12:31 pm
Posted on 1/23/25 at 1:08 pm to Napoleon
quote:You highly doubt what?
I highly doubt this.
GDF has taken over the state with legal weed.
Posted on 1/23/25 at 2:47 pm to Donkus
quote:Because they have a monopoly and can control pricing. Dispensaries in recreationally legal states are having having a hard time making profits due to all the taxes and regulationsz There is a recent Freakonomics podcast episode series about it.
Source? Good Day Farms just opened two new locations in S'port/Bossier, one being a completely new building.
Posted on 1/23/25 at 2:57 pm to Napoleon
I worked in a firm that represented 40+ clients hoping to open a dispensary. We helped guide them through the process and represent them before government and zoning boards. When a potential new client came in, the first question asked of them was “do you have a piece of land to open on?” If the answer was no, they were told to go get that and then come back to us. Most didn’t come back.
You’re going to need a piece of land or a lease that is properly zoned for it, which isn’t easy to come by. And you’ll need a lot, and I mean a lot, of liquidity to be able to sit on that land for at least a year while you go through the licensure process. Because anyone who owns land that’s properly zoned knows they can charge the hell out of people desperate to open.
Each state is different, but most give a county (or parish in this case) a limited number of licenses, and the local boards determine who gets them. Whoever can bring the most money to the community often gets the licenses, which is usually large out of state companies with deep pockets.
Even if you pass both of those hurdles and manage to open a store, you’ll have about a 3-4 year window where you’re making large enough profits to make the juice worth the squeeze before the market is saturated and the novelty wears off.
In other words, you’re not going to get into the marijuana industry. Your winning lottery ticket is to own a piece of land properly zoned for it and lease it to someone with deep pockets at a premium.
You’re going to need a piece of land or a lease that is properly zoned for it, which isn’t easy to come by. And you’ll need a lot, and I mean a lot, of liquidity to be able to sit on that land for at least a year while you go through the licensure process. Because anyone who owns land that’s properly zoned knows they can charge the hell out of people desperate to open.
Each state is different, but most give a county (or parish in this case) a limited number of licenses, and the local boards determine who gets them. Whoever can bring the most money to the community often gets the licenses, which is usually large out of state companies with deep pockets.
Even if you pass both of those hurdles and manage to open a store, you’ll have about a 3-4 year window where you’re making large enough profits to make the juice worth the squeeze before the market is saturated and the novelty wears off.
In other words, you’re not going to get into the marijuana industry. Your winning lottery ticket is to own a piece of land properly zoned for it and lease it to someone with deep pockets at a premium.
This post was edited on 1/23/25 at 3:01 pm
Posted on 1/23/25 at 5:04 pm to KamaCausey_LSU
quote:
Good Day Farms
Has a distribution center off E. Petroleum Drive by Ruffino's and they wear a shirt that says "Plants>Pills " and I want one!
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