Having trouble finding a reasonably priced distributor to move our product to a dispensary that already wants our stuff. Deals been worked out already just need transportation and storage services. Please let me know if you know anyone who does this for less than 20%.
Same here, in LA/SD area
Hold up…youre paying a 20% royalty just for delivery? I hope I’m interpreting that wrong.
With distribution comes the whole gambit of another business, payroll,trucks,insurance,workers comp, permit from state and counties they deliver, ect. 20% seems high, but the volume they need is limited to only licensed dispensaries right now. Unless they are operating under the collective model still. That(non-licensed/collective business) is probably going to get hit hard in July when the State starts cracking down.
When you put the math our there is makes sense for the rate. What intrigues me is the fact that you guys have to use those companies.
Up north here our requirement is Canada Post. Doesn’t even hurt the bottom line.
I find it so interesting how different the systems are from region to region as a whole. I am interested to see which system comes out on top in ten or fifteen years.
Distribution here in Cali is still in it’s infancy. Our county is making regulations that will let growers be their own distributor and transporter. I think this will happen within a year. In the mean time, I refuse to give a company 20% if I already have the deal sealed with the retail outlets and just need them as a pass through. This and the testing requirements are gonna bottle neck our industry in the next 6 months. That will make prices go up soon. Already seeing this happening. Canada has it tightly controlled and regulated. You guys are way ahead of the industry!