Replies to post #227043 on Blum Holdings Inc (BLMH)

[Magnum7419]

Ok lets forget the current status and look ahead at the bright future .

2018 the margins will improve by What % to achieve profit mode?

I hate to sound negative but the company has no cultivation site in Nevada and they need 8 million......how will they over come this by 2018 ? there is less than 6 months left and the lot is still full of dirt .....

[IndustryParticipant]

"Economy of scale". There's absolutely no reason expenses should increase proportionately with revenue and sales. 95% of expenses will remain fixed.

If I have an operation (rent, licensing, payroll, etc) the increases should be minimal if I go from $1MM to $10MM.

(Accounting and legal may increase, an extra employee here and there, supplies of course, extra packaging (cultivation), etc, but it will not be a dollar for dollar, 10 fold increase in expenses.

That's just stupidity, pure and simple.

We just had an operation do a 500% increase in sales. Additional expenses were a couple full time, couple part timers, that's about it. (Instead of overstaffing, the entire staff now merely stays busy (swamped) the entire shift, which they prefer. Other operations have double or triple the staff/payroll for same volume. We typically staff about 1/2 or less of similar operations. (I'd rather have fewer employee's making more, staying busy (and happy) than overstaffing, everyone making less, etc....)

An interesting TRTC note (from what I have seen), compensation (average employee) is a little high, and their marketing expenses are probably unusually high, as their efforts appear to be fairly inefficient.

I'd agree though, their entire operation has changed (literally overnight), so while yes, financials are always important, in this specific case, yesterday's data is truly no longer relevant/outdated. Q3 and moving forward will actually be a more accurate representation of operations.

[thehumanchessmachine]

.12 on the way... just seat back