Making a Profit from Botanical Oil Extraction

PDF Download: 20170822-infinity-supercritical-co2-extraction-profit-review

Introduction: The market segment which is making money right now is oil extraction and concentrates. This might be cannabis oil (vape pens), hemp oil (CBDs), or in the nutraceuticals industry, phenols and metabolites. The later is mainly used in the supplement industry in tablet, capsule, and concentrate form (tincture – used to drop into tea, flavor drinks, etc.).

Oil extraction is a value-added segment of the industry, which is more profitable than cultivation, due to the limited number of extractors. Lots of cultivators and large supply, drive prices down. Limited extractors, and small supply, drive prices up.

sonic-extractor-hops-extract-20160707

Research: The best strategy is to research and study the area you want to focus on, and which industry and consumer to target. If you focus on a niche market, you will have better results, than if you do what everyone else does.

Branding: Having your own brand will identify your product with consistency. It allows the consumer to quickly chose your product, and refer your product to others. Word of mouth is sometimes the best advertising, and best of all it’s free.

Steps to Profit

 

Step 1: Identify your botanical, product, and market. What product do you want to sell, and who is going to buy it ?

Step 2: Identify attributes to your product, and benefits of the botanical. Choose a brand name.

Step 3: Establish a botanical supplier and purity. Have a certified lab test your botanical sample, and indicate pesticide free, and available oil. Negotiate your best price on the botanicals, and insist on regular sample testing, and tracking from growth, harvest, and final delivery.

Step 4: Flavinoids. Do you want your brand product to have flavor ? Botanicals are flavored by compounds called terpenes, which can be removed in the extraction process. They can even be removed, and replaced, with a different flavor (such as removing a hops taste or smell, with vanilla).

Step 5: Establish your market network. This may include direct-to-customer sales (via a website or sales agents), for non-regulated items Amazon, or through retail organizations like dispensaries.

Step 6: Source and assemble your extraction process, including the extraction equipment and any post-processing equipment needed to put the oil or concentrate into a consumer ready format (i.e. vape pens, tincture, etc.). Get competitive quotes on equipment, and go see it in operation before you buy.

Step 7: Develop a comprehensive website, which includes ordering direct, publications on the product, including any scientific research. For fast set-up, use WordPress.

Step 8: Test run your production line, and provide free samples for a limited time.

Step 9: Price your product. A brand name will command a higher price than a generic product. A niche market will also bring higher prices. Do you want a one-time sale, or offer a subscription ?

Step 10: Return on Investment feedback. Set a loop in the chain of supply and sales that allows you to capture and analyze metrics of the cost of goods versus your profit. Adjust your supplier price, and sale price accordingly.

Summary: While this is not a comprehensive list of everything that needs to be done, this will get you on the right path. These steps are merely guidelines, that can get you on the road to profit. You may need to re-number the list, according to your priority and product development. Redefining markets, customers, and profits is a dynamic strategy, since none of those factors are static. Over time, you need to constantly innovate new ways to market and develop your product for a savvy consumer.

20170428-10L-infinity-supercritical-green

Infinity Supercritical Botanical Oil Extraction Machine Which Uses CO2 as the Solvent

Cannabis Oil Production For Profit

PDF Download: 20170302-infinity-supercritical-cannabis-oil-for-profit

Cannabis sweeps the nation

As the Cannabis revolution swings across America, states going legal are raking in huge tax revenue, and citizens are finally getting access to medical and recreational benefits of Cannabis production. The momentum is slowing moving towards oil (concentrates) which provide easier access to deliver the benefits via vape pens, edibles, and concentrates for medical purposes (CBD’s). With the political aspects aside, this review will list the aspects of producing Cannabis oil for profit.

20170217-infinity-supercritical-10-liter-front
Using a Infinity Supercritical 10L CO2 Extraction System is a good starting point for a oil refining business.

 

Supply versus demand

The mystique of the Cannabis industry has lots of people jumping into the mix, without knowledge of running a business, or the nuances of running a business to make money. A few are becoming millionaires, but most are breaking even, or losing money. Just look at the number of licenses issued in Colorado, and how supply has effected pricing. Business Insider reports that the price of wholesale marijuana has dropped by half in about a year.

http://www.businessinsider.com/marijuanas-getting-cheaper-in-colorado-2016-9

Plan a startup strategy

What differentiates those making money, and those losing money ?

Those who make money set out with a plan, a budget, funding, and a team to deliver that plan. If you set out with detailed goals and a strategy, you’re already ahead of most of the groups in the industry. Failure to plan, is a plan for failure.

You need to have a startup plan, growth, and exit plan. If you plan and play your cards right, you’ll end up with a successful business.

Information is paramount to profit

In the planning stages, it’s critical to become informed. Read, research, inquire, and educate yourself about what you are getting into.

Read: Study online information.

Research: Online studies, scientific research papers, pricing models and consumer demand.

Inquire: Existing successful operations, and those that are not, and why they are not.

Educate: Sometimes the key to success is a very fine line, stack the deck in your favor.

http://www.infinitysupercritical.com/publications.html

 

Determine your business path to success

Select the part of the industry, that interests you the most, and makes the most money.

While this may be easier said than done, select a industry segment that you will enjoy working in, and develop it.

If you are vertically integrated, and have lots of funding, you can run an entire operation from cultivation to retail sales. The savvy types will focus on one targeted segment and make money with that segment, then grow by acquisition.

 

Start with oil extraction

Who makes the most money in the oil industry ? When compared to the hydrocarbon oil industry, it is the refiners.

http://www.latimes.com/business/la-fi-gas-profits-20150722-story.html

In the Cannabis industry, the most value-added is extracting and refining the botanical oil.

http://blog.sfgate.com/smellthetruth/2015/01/12/is-cannabis-extraction-the-future-of-a-multi-billion-dollar-industry/

 

Why is Cannabis oil extraction potentially the most profitable and least vulnerable to industry pitfalls ?

While supply and demand will ultimately determine overall industry income, as a Cannabis oil refinery lab (including post processing), you have the flexibility to determine downstream products. With a extraction system, you can make live resin, vape pens, concentrates, shatter, etc. And like other industries, you can tailor the output according to the market demand. Cultivators and retails do not have such flexibility. The ability to morph according to customer demand is an important factor to profitability.

What is the best method of cultivation of Cannabis to make a methodical profit ?

The best profit model would be a indoor grow, with staggered starting and harvest cycles, on a weekly basis. This will not only utilize your energy, personnel, and extraction lab more efficiently, but also allows you to tailor downstream product offerings to consumer demand, while providing a fresh product at all times. While outdoor grows are great, they are only once a year. The stress at harvest season is tremendous, and all that supply drives prices down, at that time of year.

FogPonics is the best kept secret in the Cannabis industry

Developed by a LA entrepreneur, the vertical grow tower system provides a weekly harvest, optimizing energy, personnel, and production specifically targeting oil production. On a five week grow out cycle, FogPonics is designed for oil production with fast growth varieties like Cinderella.

 

Oil extraction and post production

As oil is extracted from botanicals, the end product is a substance commonly referred to as crude oil. While this material can be used for dabs, it is more likely to go into post processing for refining downstream into concentrates or other products. It is typical for a extraction system to have a complimentary post processing lab, to refine and separate the oil for consumer products.

 

Strategy for success

Determining your actual business model will depend on your goals and the market in your area, but we recommend the following:

1. Start a extraction facility with post-processing lab.

2. If supply is an issue, vertically integrate with a FogPonics vertical grow facility.

3. Tailor your output products to demand.

4. Start or acquire your own vape pen brand, or develop products with your concentrates.

ROI App: http://www.infinitysupercritical.com/roi.html

roi

Profiting from Botanical Oil Extraction

PDF Download: 20170822-infinity-supercritical-co2-extraction-profit-review

Introduction: The market segment which is making money right now is oil extraction and concentrates. This might be cannabis oil (vape pens), hemp oil (CBDs), or in the nutraceuticals industry, phenols and metabolites. The later is mainly used in the supplement industry in tablet, capsule, and concentrate form (tincture – used to drop into tea, flavor drinks, etc.).

Oil extraction is a value-added segment of the industry, which is more profitable than cultivation, due to the limited number of extractors. Lots of cultivators and large supply, drive prices down. Limited extractors, and small supply, drive prices up.

sonic-extractor-hops-extract-20160707

Research: The best strategy is to research and study the area you want to focus on, and which industry and consumer to target. If you focus on a niche market, you will have better results, than if you do what everyone else does.

Branding: Having your own brand will identify your product with consistency. It allows the consumer to quickly chose your product, and refer your product to others. Word of mouth is sometimes the best advertising, and best of all it’s free.

Steps to Profit

 

Step 1: Identify your botanical, product, and market. What product do you want to sell, and who is going to buy it ?

Step 2: Identify attributes to your product, and benefits of the botanical. Choose a brand name.

Step 3: Establish a botanical supplier and purity. Have a certified lab test your botanical sample, and indicate pesticide free, and available oil. Negotiate your best price on the botanicals, and insist on regular sample testing, and tracking from growth, harvest, and final delivery.

Step 4: Flavinoids. Do you want your brand product to have flavor ? Botanicals are flavored by compounds called terpenes, which can be removed in the extraction process. They can even be removed, and replaced, with a different flavor (such as removing a hops taste or smell, with vanilla).

Step 5: Establish your market network. This may include direct-to-customer sales (via a website or sales agents), for non-regulated items Amazon, or through retail organizations like dispensaries.

Step 6: Source and assemble your extraction process, including the extraction equipment and any post-processing equipment needed to put the oil or concentrate into a consumer ready format (i.e. vape pens, tincture, etc.). Get competitive quotes on equipment, and go see it in operation before you buy.

Step 7: Develop a comprehensive website, which includes ordering direct, publications on the product, including any scientific research. For fast set-up, use WordPress.

Step 8: Test run your production line, and provide free samples for a limited time.

Step 9: Price your product. A brand name will command a higher price than a generic product. A niche market will also bring higher prices. Do you want a one-time sale, or offer a subscription ?

Step 10: Return on Investment feedback. Set a loop in the chain of supply and sales that allows you to capture and analyze metrics of the cost of goods versus your profit. Adjust your supplier price, and sale price accordingly.

Summary: While this is not a comprehensive list of everything that needs to be done, this will get you on the right path. These steps are merely guidelines, that can get you on the road to profit. You may need to re-number the list, according to your priority and product development. Redefining markets, customers, and profits is a dynamic strategy, since none of those factors are static. Over time, you need to constantly innovate new ways to market and develop your product for a savvy consumer.

20170428-10L-infinity-supercritical-green

Infinity Supercritical Botanical Oil Extraction Machine Which Uses CO2 as the Solvent

California Cannabis Production and Start-up Cultivation vs Cash Flow Strategy

Read the PDF: 20170608-infinity-supercritical-california-cannabis

California Cannabis

We are starting to get lots of calls from California regarding cultivation and using our extraction systems for oil production and sales for January 2018. The current strategy is to put up cultivation, and then start extraction after harvest. While this may seem intuitively correct, it is the worst strategy for cash-flow.

20170217-infinity-supercritical-10-liter-front-top

 

Start-up Cultivation Means Delayed Cash-flow

If you start with cultivation, you’re looking at 9 -12 months to begin getting cash-flow (in the process from building the grow-house to mature harvest). The time might be a bit better for pure indoor grow, but still a long time regardless. This means you will need a large amount of initial capital outlay, to build facilities, and during the grow. This is valuable time that can be better utilized.

roi

Start with Extraction of Oil for Cash-flow

 

The profit-makers out in the Cannabis industry have realized that while you can make money cultivating (which everybody is doing), faster access to cash-flow is from the value-added sector, of running extraction machines to produce live resin, shatter, crumb, concentrates for edibles, and vape- pen oil.

infinity-supercritical-co2-hops-extraction-flow-bar-1

Extraction Revenue

Don’t have your own Cannabis product ? Then check with your state regulations and purchase trim or other products from producers who do not have extraction facilities, and then work the value-added space. $50 a pound trim has the potential to get you more than $200 of oil extract. That’s a minimum of four times the value of the trim, and great cash-flow. Of course you will still need to look into the extraction license and other regulations, but this gets you started faster, and with less capital outlay.

Equity Versus Cash-flow

This type strategy gets you faster cash-flow and the all-important sales. This builds equity faster, and requires less initial capital. Starting with just a licensed extraction facility can provide you with a springboard of capital which you can leverage into your own indoor grow, or expanding extraction machinery and capabilities.

img_7406

Starting a Cannabis Business | Access for Women | Startup | Business Plan

Infinity Supercritical LLC

Email: greg@infinitysupercritical.com

Cannabis Search Engine Series Starting a Cannabis Business

PDF Publications Search Engine This real-time PDF document search/retrieve search engine forms dynamic search engine lists and results using Filemaker.  Search engine displays results with both text and a image field of the .pdf page.

Search Complete. Starting a Cannabis Business search was updated in real-time via Filemaker on:

November 16, 2016

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January 1, 2018. The California Weed Gold Rush Has Begun. Are you ready ? Strategy.

Read the PDF: 20170608-infinity-supercritical-california-cannabis

California Cannabis

The California recreational sales has begun. The current strategy is to put up cultivation, and then start extraction after harvest. While this may seem intuitively correct, it is the worst strategy for cash-flow.

20170217-infinity-supercritical-10-liter-front-top

 

Start-up Cultivation Means Delayed Cash-flow

If you start with cultivation, you’re looking at 9 -12 months to begin getting cash-flow (in the process from building the grow-house to mature harvest). The time might be a bit better for pure indoor grow, but still a long time regardless. This means you will need a large amount of initial capital outlay, to build facilities, and during the grow. This is valuable time that can be better utilized.

infinity-supercritical-sample-roi

Start with Extraction of Oil for Cash-flow

 

The profit-makers out in the Cannabis industry have realized that while you can make money cultivating (which everybody is doing), faster access to cash-flow is from the value-added sector, of running extraction machines to produce live resin, shatter, crumb, concentrates for edibles, and vape- pen oil.

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Extraction Revenue

Don’t have your own Cannabis product ? Then check with your state regulations and purchase trim or other products from producers who do not have extraction facilities, and then work the value-added space. $50 a pound trim has the potential to get you more than $200 of oil extract. That’s a minimum of four times the value of the trim, and great cash-flow. Of course you will still need to look into the extraction license and other regulations, but this gets you started faster, and with less capital outlay.

Equity Versus Cash-flow

This type strategy gets you faster cash-flow and the all-important sales. This builds equity faster, and requires less initial capital. Starting with just a licensed extraction facility can provide you with a springboard of capital which you can leverage into your own indoor grow, or expanding extraction machinery and capabilities.

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Profiting from Botanical Oil Extraction

PDF Download: 20170822-infinity-supercritical-co2-extraction-profit-review

Introduction: The market segment which is making money right now is oil extraction and concentrates. This might be cannabis oil (vape pens), hemp oil (CBDs), or in the nutraceuticals industry, phenols and metabolites. The later is mainly used in the supplement industry in tablet, capsule, and concentrate form (tincture – used to drop into tea, flavor drinks, etc.).

Oil extraction is a value-added segment of the industry, which is more profitable than cultivation, due to the limited number of extractors. Lots of cultivators and large supply, drive prices down. Limited extractors, and small supply, drive prices up.

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Research: The best strategy is to research and study the area you want to focus on, and which industry and consumer to target. If you focus on a niche market, you will have better results, than if you do what everyone else does.

Branding: Having your own brand will identify your product with consistency. It allows the consumer to quickly chose your product, and refer your product to others. Word of mouth is sometimes the best advertising, and best of all it’s free.

Steps to Profit

 

Step 1: Identify your botanical, product, and market. What product do you want to sell, and who is going to buy it ?

Step 2: Identify attributes to your product, and benefits of the botanical. Choose a brand name.

Step 3: Establish a botanical supplier and purity. Have a certified lab test your botanical sample, and indicate pesticide free, and available oil. Negotiate your best price on the botanicals, and insist on regular sample testing, and tracking from growth, harvest, and final delivery.

Step 4: Flavinoids. Do you want your brand product to have flavor ? Botanicals are flavored by compounds called terpenes, which can be removed in the extraction process. They can even be removed, and replaced, with a different flavor (such as removing a hops taste or smell, with vanilla).

Step 5: Establish your market network. This may include direct-to-customer sales (via a website or sales agents), for non-regulated items Amazon, or through retail organizations like dispensaries.

Step 6: Source and assemble your extraction process, including the extraction equipment and any post-processing equipment needed to put the oil or concentrate into a consumer ready format (i.e. vape pens, tincture, etc.). Get competitive quotes on equipment, and go see it in operation before you buy.

Step 7: Develop a comprehensive website, which includes ordering direct, publications on the product, including any scientific research. For fast set-up, use WordPress.

Step 8: Test run your production line, and provide free samples for a limited time.

Step 9: Price your product. A brand name will command a higher price than a generic product. A niche market will also bring higher prices. Do you want a one-time sale, or offer a subscription ?

Step 10: Return on Investment feedback. Set a loop in the chain of supply and sales that allows you to capture and analyze metrics of the cost of goods versus your profit. Adjust your supplier price, and sale price accordingly.

Summary: While this is not a comprehensive list of everything that needs to be done, this will get you on the right path. These steps are merely guidelines, that can get you on the road to profit. You may need to re-number the list, according to your priority and product development. Redefining markets, customers, and profits is a dynamic strategy, since none of those factors are static. Over time, you need to constantly innovate new ways to market and develop your product for a savvy consumer.

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Infinity Supercritical Botanical Oil Extraction Machine Which Uses CO2 as the Solvent