Replies to post #33567 on Sunset Island Group Inc (SIGO)

[penknee]

Wrong? You just pointed out an additional tax I missed, thanks.

Your numbers are way off for prices though, the average doesn’t matter, its all about quality. High quality weed has dropped to $1800 per pound, it was over $2,000 6 months ago, and $2500 last year. There is a massive amount of supply right now. Retail prices have gone from $20 per gram 2 years ago, down to $8. We know they don’t have the highest quality based on their growing style and the fact that they made more money going to extract. “So many inaccuracies” now that’s some bullshit nonsense, the numbers come straight from THEIR filings.

[BeerIsGood]

That article is a nice read - thanks!

How low will it go? Is California going to hit the $500-an-average-pound wholesale mark?

“Absolutely, but I don’t think any time soon,” Nevedal said, adding she’s certain that wholesalers will be selling lower-quality flower and cannabis for extraction for $500 a pound or less.

Caston said he’s already heard of cultivators having trouble offloading this year’s crop at $400-$500 a pound wholesale.

Cost of doing business

It’s not just wholesale price that should concern cultivators. They also must consider their input costs.

Input costs include license fees, the staff time required to develop a licensing application and the cost of track-and-trace compliance.

For example, in the Metrc traceability system, each plant is required to be tagged with an ID tag that costs 80 cents.

The California Department of Food and Agriculture – which licenses cultivators – released an economic impact analysis in January 2017 on the effects of the cultivation regulations.

“Their estimation is that the cost of compliance will be around $560 a pound,” Caston said.