GREY:INSHF - Post by User
Comment by
IndieInvesteron Feb 01, 2019 3:40pm
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Post# 29307610
RE:RE:RE:RE:RE:Good things to come
RE:RE:RE:RE:RE:Good things to comeGood questions from both people.
Spiritleaf sells ALL the same products that the other stores sell. But they have several LP partners which they also sell and receive support from. The best example of this is the large Gord Downie mural hung in the Spiritleaf lounges. A key painting tying Spiritleaf to the band, which is an icon of importance both to Canadian and cannabis users.
The same benefit from other LP partners is yet to be realized. But ultimately this is increased possibilities for store support, brand support etc.
One of the LPs is the key producer of Spiritleafa in-house brands which are to launch in coming years when laws are suitable.
One of the key key things to know is this is the beginning of an entirely new industry. Legislation and regulations will change. They historically always change to allow more opportunities, not less. Strategic partnerships now equal long term potential.
6% royalties. If you run a retail store you have a vast amount of costs before you get net profit. In some poor performing retails you may only get 6% at the end. In Spiritleafs case they get 6% off the top of ALL sales. Regardless of profitability. Franchising is the safest investment of this type. However there are great profits to be made. Which is why spiritleaf is pursuing more Corporate locations. In this industry and time of market,
franchising also has better market sell through traditionally because of store owners working in store and being on site growing their business. Something that is drastically underestimated in value. This is in comparison to almost all the competition, whine everyone in the store is an employee, hired by an employee, manager by a district manager employee etc. This will have an impact on long term growth in my opinion.
However, while I believe whole heartedly in this company being successful. It’s not Apple or Samsung. This is more like early days Dominos or Starbucks.