Ever wonder who is making any money in the cannabis industry ? Here are some easy steps to follow, to lose money quickly.
1. Have a Outdoor Grow:
Produce one crop per year, susceptible to pests, theft, Mother Nature, drought, and seasonal price drops at harvest time due to over supply, this is the number one way to lose money. Currently, the market is saturated with too much supply, which drives prices even lower. Consider alternatives like a indoor grow, and with a variety that allows multiple harvests every 6 weeks. Focus on a plant strain that has a short maturity and produces good quality oil extracts. Let the outdoor cultivators sell the flower, and lose money. Buy the trim, and process into oil. Lab test to be sure it’s pesticide free.
2. Do What Everybody Else is Doing:
Run with the herd, and they’ll steer you into oblivion. The best way to lose money, in a market saturated with product which drives prices lower, is to do the same thing everybody else is. Complementary, don’t combine resources with your local producers, since you may get a comparative advantage by combining forces to get better discounts for supplies, or combining funds to purchase a extractor. Just selling the flower won’t make you money. Buy the trim, and process into oil extract for up to a 4-to-1 value added.
3. Make BHO Extractions:
BHO is dangerous to process with, since the solvent is typically butane or propane (which is very explosive). Closed loop hydrocarbons produce huge amounts of static electricity, and the resulting corona discharge will make an explosion. Some of the solvent will make it into the product, which does not have desirable medical effects for the buyer (nose burn and heart pains). Even worse, it does not have a good shelf-life. You need to sell and use the extract within a few weeks, or it goes bad. It’s cheap to produce, and is very typical of the low-end junk extract you’ll find in the market.
4. Buy an Expensive Supercritical CO2 Extraction Machine:
Like a Waters or Apeks. They run great, but you’ll spend so much time paying them off, the ROI in a saturated market will unpleasantly surprise you. Plus, since they’re automated, expect a release of CO2 anytime there’s a software issue. Great machines, at a huge price. Opt for other fantastic alternatives in the CO2 space like Infinity Supercritical. Don’t buy on promised yield, buy on the ability to extract. If you only have a 2 percent oil in your trim, how can you get a 17 percent yield ? Don’t buy claims, buy results.
5. Don’t Buy a Industrial Supercritical CO2 Extraction Machine at a Reasonable Price:
There are plenty of great machines, at a price that is affordable, with great payback, and produce a superior product. Instead of a automated machine, opt for a semi- automated machine which gives you more control over your processing extract, like Infinity Supercritical. Buy a machine with a proven lab and testing development program, and one that can process fast, using technology instead of increasing flow. Buy a machine that has a good collection efficiency, or you’ll be cleaning the pump every day.
6. Don’t Produce a Custom Extract:
The best way to lose money is to just sell crude oil from your extractor. If you want to leave the herd behind, develop your own custom extract recipe and product. Develop a brand, and provide free samples to dispensaries. Build that reputation for quality and taste. Be sure to lab certify and test all incoming botanicals, especially trim. Test for pesticides (you want pesticide free) and oil content. Base your buying price on those two factors. Low oil content = low price. Target trim around $50 a pound for 8 percent oil content.
7. Don’t Put in a FogPonics Indoor Grow System:
Other than growing outdoors, to lose the most amount of money, start a indoor grow which doesn’t use aeroponics, and uses lots of HID lights, not optimized for plant per square foot. The relatively new kid on the block is FogPonics. This highly efficient grow system is based on optimizing grow conditions for healthy roots and canopy, while minimizing worker interaction, light power, HVAC power, and nutrient costs. It has the best wattage per gram output anywhere. Using a fast growing strain like Cinderella, increases production to a 5-6 week rotation to maximize oil output.
9. Don’t Process Extract From Trim:
Just sell the raw trim, to lose the most amount of money. If you process trim for vape pen or concentrate extract with Supercritical CO2 (which has a long shelf life), you may be able to make 4 times return on the purchase of the trim per pound. In some areas, the comparative advantage is even higher than 400 percent. Again, be sure to lab test for pesticides and available oil. Base your buy price on the available oil.
10. Don’t Research, Educate, and Make Yourself More Knowledgeable:
The best way to lose more money is to be uninformed. Don’t ask questions. Don’t ask dumb questions. Don’t seek better and more efficient ways to make money, while spending less time doing it. Don’t have a plan or strategy. Don’t have a backup plan when something doesn’t work. Don’t have a methodology. Try not to innovate and try not be creative. When you’re following the herd, all you have to do is follow, it’s simple. On the flip-side, you have nothing to lose by educating yourself. And everything to gain.
11. Listen to Media and your Competitors who Provide False Information:
Listen to the media who receives misinformation from the source, and all of the other misinformation that the herd puts out there. The surest way to kill competition, is to lead them down the path of losing money. Keep in mind there is no regulation to bad data, poor sources, and false information, and lies in the industry. Be keenly aware of Social Media Trolls, which many manufacturers use to boost false-positive reviews of equipment.
The best way to lose money in the Hemp and Cannabis industry is to do what everyone else is doing. The herd isn’t making any money, why should you ?If you don’t have a niche market, find one. If you don’t have a niche product, make one. If you don’t have a niche method, create one. If not, you’re guaranteed to lose money.