Before getting into the financial details of selling to dispensaries, it is important to understand what this term means –
Who is Known as a Grower?
A grower is someone who grows cannabis as a professional and is legally capable of cultivating it for selling it to businesses such as dispensaries. One can either grow marijuana outdoors or indoors depending upon many other factors. Recently, many growers are opting for indoor greenhouses because it gives them increased control over the yielded crop.
The process of becoming a grower is more complicated than just buying plants and aiming at larger productions. Other than acquiring a license, one needs to have vast knowledge about cultivating cannabis.
What is a Dispensary?
Dispensary typically functions as a pharmacy. It is an outlet responsible for buying processed marijuana products from the growers. However, these dispensaries are more interested in items like marijuana herbs and edibles. There are two types of cannabis dispensaries –
These dispensaries are exclusively dedicated to treating patients. That means doctors prescribe a treatment that includes marijuana. Before receiving the medication, doctor’s orders and their registrations are what create a requirement for purchasing marijuana.
This kind of dispensaries do not require any prescriptions from doctors, it works on the stop-and-shop model. Anyone who is above the age of 21 can make a purchase of marijuana items which includes topicals, flowers, or even edibles. However, it comes with a bitter truth, not all states have made it legal yet.
Online shopping has always been amazing, with the increasing popularity even the dispensaries are launching themselves online in the states like California. One can directly sell to the clients and receive the payments accordingly.
How Much does a Grower make Selling to Dispensaries?
Now that you know enough about both the buyer and seller, let’s get down to the business. It is a bit difficult to declare the exact amount that a grower might make selling marijuana to dispensaries as there are multiple factors behind the particular calculation. The factors are –
- The state in which you are planning to cultivate the cannabis or marijuana
- The size of your cultivation or the amount at which you operate.
- The type of dispensary who are going to end up making a purchase with you.
- The most important factor is the quality of your produce. The higher the quality, the more will be the price.
The pricing generally depends upon the size of cultivation because that decides your ability to make a delivery. Growers with large-scale cultivation can deliver a higher amount of end products. Statistically speaking, the top 10% slab of producers are estimated to make sales of $20,00,000 to $200,00,000 on annual basis. So, on average, a top producer might end up selling $1,050,000. You might be thinking what about the others?
The remaining 90% of the population is estimated to make somewhere around $260,000 on annual basis. Not let the statistics put down your expectations, it is just like starting any other business. You can start on a small scale with a plan to keep growing eventually. Once you reach the top 10%, you already know what your sales are going to look like.
Even if you are a common grower there is a lot of scope in making ordinary incomes, all-in-all in the business of cannabis you end up making more than enough. This might be one of the reasons why so many people are getting involved in a similar business.
The marijuana chain is very long and cultivating is only one aspect of the grower. Post cultivation processing and harvesting to fit the requirements of the dispensaries that are going to purchase from you. Other activities that need the grower’s attention is –
- And of course, the actual delivery
After all packaging and branding is what sets apart one grower from another. That is how a grower converts from 90% slab to 10 % slab. The dispensary is also very intelligent while picking the grower so make sure that the designs are exclusive enough to attract more and more dispensaries only if you can make the actual deliveries.
Who are Master Growers?
Master grower is an informal term given to the experts of the cannabis industry. Any grower who has more than 10 years of experience in growing cannabis and has explored multiple techniques in the same. To become a master, one needs to have deep knowledge of different kinds of strains and skills to either manage or train the individuals or teams.
When in the position of the master grower, one can earn up to $50,000 to $1,45,000 on annual basis. Again, the earnings will depend on the quality, quantity, and market conditions.
What is the Connection Between Growers and Dispensaries?
You might think that the first step is to decide the kind of marijuana you will grow but that is not the case. The first step is to decide the kind of dispensary that you want to supply your products to. Make a choice whether you want to work with the medical or recreational dispensary.
The general advice is to go for medical dispensaries due to their higher quality standards. It also mandates to follow the strict production and quality guidelines to go hand-in-hand with medical marijuana.
On the other hand, the dispensaries will ask about licenses before they even consider trading with you. The rule of the same will differ from state to state. Some trade-in organic while others like to focus on specific strains only.
How to Locate Marijuana Dispensaries?
Since the cannabis industry is blooming insanely in the United States, it is very essential to have to locate services so that it stays simple for growers, recreational customers, or patients. Listed below are a few names that provide locating services –
- The MJ Directory
How to Climb on Top?
- Since there are so many strains of cannabis about which one need to study, as a grower make sure that you have a strong interest in the plant as well as plant is useful for either medical or recreational purpose.
- As the rules and regulations differ from state to state, it is very important that grower keeps one eye on the compliances that need to be fulfilled in order to keep selling the marijuana produce to dispensaries.
- If you are aiming for a master grower or you are one, a marijuana quality test is a mandate in order to detect the efficiency of production and also the potential product that can be approved for selling to dispensaries.
Selling to dispensaries is a big responsibility and being a grower too. But with the right amount of knowledge and efficient produce, one can make quite a lot by selling to dispensaries. Also, generally, dispensaries are more interested in bulk orders that help you book profits in a couple of trades.
All you have to do to get hitched with one or more dispensaries is to get a verified license and pitch the right product to the right kind of dispensary. It is also advisable to find your unique selling point to make more while selling to dispensaries.
We hope we were able to deliver what you have been looking for. Check out our other blogs to find more information on similar topics.