GREY:ALEAF - Post by User
Post by
Fullnelson237on Aug 01, 2019 11:00am
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Post# 29984033
Large Cannabis Order
Large Cannabis Order Retail margins are between 32 and 35 percent.
Agreed that the number of $1M is not spectacular. However the margins made by the retail stores are much smaller.
They by cannabis for x price and then they sell it for 1.05x.
Whereas an LP grows it for y cost and then sells it for closer to 2y or likely greater.
The lower the cost of producing it (say with outdoor grow), the better those LP to retail margins will be. That will become especially important later on as more and more supply comes online and more and more LPs are growing outdoor summer crops.
The numbers would be different for any supply that is purchased from a third party supplier such as Aleafia purchasing from Aphria, though still likely better margins than retail stores will make.