I agree that disp are a rip off. Making a profit is fine, but the mark ups are unreasonable.
I dislike people using the old adage "you get what you pay for". Sometimes that is true, but not usually. If I purchase something, mark it up 500% and then resell it to you then you most certainly did not "get what you paid for", you got ripped off.
With my current set up I use about $200-$240 in electricity. Soil is relatively cheap, maybe $20-40 for a few month supply. Nutes are maybe $100 for a several month supply. I put in maybe 1-2 hours tending the garden, 1-2 times a week. I water an additional 1-2 days a week for just a short amount of time. Maybe 5 hours per week, or 20-25 hours/mo. Harvest time takes up about 25 hours per month.
Disregarding initial investments it costs me approximately $260/mo in electricity and supplies and about 50 man hours total (I get help harvesting). And from that I end up with about a pound per month.
If I say man hours are worth $10/hr (you may say your time is worth more, but this is untaxed man hours, and its nearly all busy work that could theoretically be outsourced to someone who doesn't posses the skills to earn more than $10/hr) then that's $500 labor costs total.
$260 + $500 = $760 to produce 16 ounces, or $47.50/oz. That is about $1.70/g production. Selling it at $5/g would give me $3.30 profit per gram. With 448 grams per month I could easily recover my initial investment within a short period. It would be $1478.40 profit per month after accounting for everything including labor.
Anyone who is a smoker should probably account for loss of product though. Upwards of 20% of my product simply goes up in smoke
$400/oz is absolutely disgusting though and is pure greed. Far too much middle man and greed to drive the price up that high.