GREY:MMNFQ - Post by User
Post by
Whatshisfaceon Jul 09, 2018 11:55am
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Post# 28287947
US RETAIL MARGINS ARE MILES BETTER THAN CANADA...
US RETAIL MARGINS ARE MILES BETTER THAN CANADA...For example...
In the US, MedMen is paying $1000 per pound to produce their own top-self Cannabis.
1lb = 448 grams x $15 = $6720 or 572% Mark Up
Medmen is selling @ $15 a gram (all day long)
They don't grow ALL of their own product. So let's assume they pay a high price of $3000 a pound.
$3720 profit / $3000 cost = 124% Mark Up on product they buy from other growers.
In Canada...
Weed is produced for $1.5 a gram (all-in costs) and sold to the OCS for $3? $4?
The markeup on vertical integration models in the US is FAR more attractive than Cultivation in Canada, IMO