What is your cost to grow a pound? What do you think the lowest cost can be in an ideal setup?
Outdoor? Indoor? Greenhouse? Cost per square foot, total cost per pound? What is your distribution and sales network like? Is this a once off or will you be doing this on a regular basis.
It’s a lot harder to build a business than it is to grow some weed…
Whatever you have data on!
What is your cost per gram indoor? Outdoor? I am talking Ready for retail price. Reoccurring commercial harvests is what I am curious about.
I have seen indoor facilities that estimate they spend $1400 on a pound to grow (which is really high I think) and I have seen outdoor growers in WA rocking $250 a lb easy. Indoor seems to be like $1.50-2 per gram costs in a big facility in my experience, give or take.
Here is a good summary article on smaller home grows, but the pricing per gram and explanations can give you some insight. It’s becoming clearer in the market that Indoor is not the most profitable vs Greenhouses with assisted lighting in a legalized atmosphere.
Of course this is from no scientific backing, just anecdotal but for me I’ve always had these ranges in my head from my experiences over the last 8 years in the industry:
Indoor: $1,250 to $600
Greenhouse: $750 to $350
Outdoor: $600 to $200
In some instances a well run indoor can out-economics a poorly put together greenhouse. Same applies for greenhouse to outdoor. That said, I still think greenhouse is the way to go because the risk associated with growing outdoors should be factored into the price, and it’s not. If you lose half of your crop one year due to inclement weather, how does that cost get factored in?
When we were looking into costs associated to greenhouse operations, specifically hydroponics - the range that kept coming up for paying people to operate a grow - was 40%-70% of total operational costs.
Automation can of course hugely reduce the number of hrs spent doing manual operations - I suppose the question is - do you still pay that person the same #hrs after you automate a lot of tasks - but ask them to now focus on different tasks (perhaps those more tied to generating revenue / focussing on the business) - and if so, does that in fact cost you less (as there is more revenue generated further down the line)
I guess I asked more questions than helped answer - - but worth thinking about if trying to calculate operational costs.
Your questions are actually a big questions that are arising throughout most of the Western world right now. Automation is on the verge of taking over a large number of jobs, making people unemployed through no fault of their own. How we choose to help them is a big question that no politician seems to be keen on answering.
Bumping this topic for the newer members.