RE:RE:RE:Why are MSO's more profitable that LP's ?CommonCentsforDollars wrote: Some States are very limited with licences. Those States price points could remain higher for longer. But overall yes I do agree with you. More competiveness will come in the future. Regardless of that,.. these USA price points are CRAZY in comparison. I mean on AVERAGE retail customer are paying OVER $60 CAD for 3.5 grams. That is crazy town pricing.
In Canada we are working in extremely thin margins.... USA has fat bloated PIG margins. Huge difference and that is directly related to the difference in Fins. Tonnes of room to get competitve. We need to be there.
Oldweed wrote: Keeping in mind MSO's may lower their price points as the market matures and some MJ crops (likely non medical supply for 2.0) will 1st move to the farming sector as a commodity. Alot of these MSOs have leased back their grow operations to posture for this shift where they may need to lighten up on the assets. I can definately see some partnerships/mergers for medical grade/supply deals from LPs like TLRY, ACB, and HEXO to supply MSOs with MJ to further cut costs for MSOs after legalization. This is where the market is going IMO.
For sure 100% if you are not in the USA you are not going to be an international player. TLRY MUST FIND A WAY SOUTH OF THE BORDER, in Canada LPs can't realistically market to brand anything, if you can't brand you can't sell at crazy prices....pretty sure someone found a way to charge crazy prices for bottled water.....a comodity already available for free!!! POWER OF BRANDING IS CRITICAL and the CAN LP's have been handcuffed untill the USA opens up!