InvestorsHub Logo

IndustryParticipant

07/14/18 4:41 PM

#263710 RE: kevindenver #263708

It is indeed not an exaggeration to state even operators themselves sometimes do not understand that which they operate within.

I/we are now servicing international clients/operations/sites (5 countries) and I actually just finished (early this morning/late last night) addressing "strategy".

It's well known by now I am an industry consultant, but what might not be is my specialty area is strategy, and I am the first to tell potential inquiries if they think they have it all down, if they "just need" a dispensary or cultivation designed, etc, then go elsewhere, as there are several dozen reputable "consultants" and firms which perform such. (Usually cookie cutter with the same for everyone, ie: "one trick pony's".)

The theme with global is now the issue of with all the players entering the game, how and what form will the competition take? Maybe "exclusive" arrangements.....maybe preferred pricing...maybe many other things.....

I have sat in front of $100MM multi state groups and asked them "what's your strategy" only to have them reply "to be the biggest/best".

Those are not "strategies", those are goals.

This morning/last night the theme was to try and accomplish several things presented which simply do not make "sense" (to me) per se. Regarding timetables, retail control, cultivation, distribution, etc.

The focus was "we want to do this".

Well, all of the above may very well not accommodate that.

I once sat with an 8 figure cultivator (facility) in which they expressed a desire to seek out and exclusively grow "landraces". (Layman can google). The question was why? Why are you willing to completely alter and enter a new arena, which could/would possibly pull valuable square footage for an unproven "desire".

I do realize I am a little verbose, as have, as above, been writing reports and calls for the last 20 hours, so, "that's where I'm at" today.....

The alcohol analogy is always the most fitting and applicable;
There are thousands of options on a liquor store's shelves. Hundreds (?) of brewers, distillers, choices. Home brewers still venture out socially and purchase alcohol. The largest do well, and the smallest thrive as well.

One can look at Diego Pellicer to be absolutely dumbfounded on how (and why) they ever grossed dollar one, yet were successful, as one could go elsewhere and procure the same goods for a fraction of the price. And yet they not only exist, but thrive in a market generally known as one of the poorest in the country with an excess supply declared "worthless" by many. ;)...(If anyone is familiar, it's basically the highest priced dispo and product in the U.S (the world?)

Point being, "mom and pop" will always exist, and possibly do quite well assuming "mom and pop" are strategists....

All of the above and previous actually being yet another specialized area moving forward. More and more we are gravitating towards "turnaround" engagements.....ie: Taking worst operation in a state and making them one of the best through any number of ways.......cultivation much easier as the reasons why usually are all the same (heavy sigh).......and again, more and more fall to the most well funded (and inexperienced) groups seeking to enter the markets to capture their "garbage truck money".....lol....

That being said (I'm flip flopping again), there is always a market for the entire range of products......some areas one has some leeway (quality), others not the case (customer service, staff).....

People don't necessarily mind paying for something, they mind paying too much. (Value)

On the note of customer service, I've noted over the past couple years as more and more "new" states turn, the phenomenon of people absolutely lining up to get job(s), then finding out it's not something they do well or want to do...ie: Everyone wants to work in a dispo cause they think it's cool, but then realize they absolutely suck in a customer service position, don't interact well, like people, and for cultivation, understand it's actually a "job", and a lot of work.....(a moment of silence for processing crews nationwide :) LOLOL.....trimming 10k lbs, even if just bucking into machines not the glamour most imagine LOL.....

I think there's "room for everyone".....(operators, people), assuming they know how to do their job, and well...but the industry is experiencing more and more people rushing in to capture the gold who don't realize, it's not quite that cut and dry....(right back to the ocean of gray.....)

Anyway.......

I could literally tell stories all day every day for weeks without taking a single breath of the absolute nonsense which exists and more and more and usually involves some of the largest and most well funded groups one could imagine...so in that sense, "mom and pop/boutique" production will always have a place, with the larger groups actually furthering/guaranteeing their ("little guys") success...

TRTC relevant?
There is no reason whatsoever they cannot have IVXX in every dispensary, in every state they operate in (assuming production capacity for starting material), but quality and consistency is key...(many have enormous cartridge failure rates due to wanting to save $, which costs one market share and clientele.....)

They seem to staff well, as the majority of reviews I have seen praise staff (extremely important)...so....

But of course, I nitpick, and could find 50 holes/gaps in "perfect", so......I'd love to take them over for a month (for free) :) lol.....

Market share isn't about most things people equate it as being...it's everything combined which creates something unique for the consumer, which can be done literally hundreds of different ways.....