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.

meta chart

The same holds for $15 per gram.

meta chart1

Without the taxes we have the following:

meta chart2

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.

  Grower Retailer
 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
 Nutrients/soil/etc  $0.10/g  $0
 Rent  $0.24  $0.24
 Shipping  $0.10  $0
 Federal taxes $1.20  $2.40
 Total  $3.04  $3.78

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:

meta chart3

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