Recently, I went into a retail store in Washington state and was astounded by the prices. $22 per gram for some, $15 per gram for others. So I did a little investigating and found out where the money goes. As you can see in this chart, the majority goes to the retailers, the second largest chunk goes to the state, and the growers get the least.
The same holds for $15 per gram.
Without the taxes we have the following:
Now we can take into account the total cost of the cannabis and see how much profit there is. For simplicity’s sake we’ll assume 1 grower, working full-time, harvesting 100 plants and each plant yields 500g. For the retailer we’ll assume 1 retailer working 1 year to sell 50,000g. Total Cannabis = 50,000g, Grower/Retailer Salary = $50,000, Insurance = $5000, License for producer/processor = $2000, rent=$12,000/yr.
|Cost of grower/retailer||$1/g||$1/g|
|Cost of insurance||$0.10/g||$0.10/g|
|Cost of license||$0.04/g||$0.04/g|
|Cost of trimming||$0.17/g||$0|
|Cost of packaging||$0.09/g||$0|
Now we can subtract the sale price from the cost to get the profit:
Grower profit = $3.50-$3.04 = $0.46
Retailer profit = $12.56-$3.78 = $8.78
And then we can graph the two: