Hi Craig,
In my opinion, the store was a flop as it only sold CBD products, not THC. It would be like going to a booze store that only sells non-alcoholic products.
A small store from which a delivery van or two could operate would DOUBLE the revenue per gram sold.
Of course, it the dispensary is located directly next to Have a Heart in Coalinga, it will cause issues.
I'm sure there's a location in CA that one could call a "Cannabis desert" (no stores nearby).
Additionally, customers form bonds with the retailer, not the manufacturer.
Warren Buffet bet big on Kraft. Big mistake: most people go for the cheaper house-brand. Of course - I'm generalizing here, but you get the point.
And that's the thing. Once these dispensaries start growing their own stuff, where does that leave Next Green Wave?
Here's the math:
NGW creates incredible cannabis, then sells 1g of product to a dispensary for $4.21. The dispensary then sells that same gram to a customer for $8.41.
Look at the winners in the industry so far: TRUL, GTII, CURA, CL. They are all 100% vertically integrated (that's seed to SALE, not shelf) in at least one jurisdiction (their most profitable).
And the old store was a partnership with SDC. If Next Green Wave owned and operated a store, 100% of the revenue would come back to the company.
And what are the expenses for a store? Staff, rent, electricity, insurance and the permit fee. These are tiny compared to the revenue it could generate.
My 2c.
