RE:RE:RE:RE:Ontario....OCS articleJRSDIRECT wrote: Here's what I don't like. The OCS wants to sell at $7.50 per gram to shut out the illegal market. The problem is that you can't run a free-market business working price backwards; if the government wants to put a price ceiling cap on the wholesale price then they need to cap every single input of production and freeze those manufacturing costs accordingly; electricity, water, gas, property tax, labor, manufacturing materials etc for all LPs which is literally impossible.
The perfect example of this type of pricing system is - Dairy; farmers cannot produce and wholesale dairy products within the pricing limits set by the Dairy Commission so in turn the Federal government provides a subsized payment to the farmer which barely covers the cost of operation. You have farmers working 16-18hr days to put food on your table and yet they barely have enough left in their pocket to put food on their own table (even with the subsidy).
What the govermnet needs to promote is the safety, security, and quality of the product. Inform consumers that they are purchasing a regulated product to the THC level that they want (intend to purchase) and that the product does not contain any other 'cut' chemicals. Knowing your product has not be 'laced' with some other derivative should be their first and for most - branding strategy.
And the product needs to speak for itself. For example, home brewed wine and vintage wine are to completely different tasting products. I have access through my European colleagues of mine to a lifetime of home made wine and yet I have never taken any of them up on the offer. Why? Taste and alcohol concentration; the variance from batch to batch is to great, no control.
Let the product - the quality and consistentcy speak for itself. That's the key to every successful franchise resteraunt - whether you are in St.Johns, Newfounland across to Vancoucer, BC or anywhere inbetween when you walk in the resteraunt and order your Big Mac, Whopper, steak at the Keg etc - the taste, quality, consistency is the same across all locations; product control.
If they impose a price ceiling, LPs will start to cut quality to ensure their margins are met and if the LP quality become to close 'street' quality then there's going to be a serious problem in ways of compelling consumers to pay more for no reason.
Agreed but there is no way they sell for 7.50 /G when supreme and others ie WEEDMD wholesale already at 6.50/G ---((( plus how greedy the gov monopoly is ** )))don't get me wrong they will have some product at 7.50 which is double A quality--possible a milled blend for cheaper even ...but top quality flower NO WAY --- why sell wholesale to any province if namaste and blissco and others buy for 6.50 wholesale..?..plus concentrates and edibles in 2019 will fetch a pretty penny --along with beverages .....we will see pricing be all over the map depending on what product /products the consumer wants ** look on the internet right now at places offering top flower for 300-320 an OZ ..the market is there for quality personal smoke*