OrganiGram posts strain list, prices between $6-9 with shipping

CalyxCrusher

CalyxCrusher

Well-Known Member
j0yr1d3 said:
Does anybody have any real solid numbers for how many patients are enrolled in the MMPR? And out of those patients what are their scripts like? Now I wonder what the average yearly income is for an MMPR patient (info we'll never have but makes you wonder)? I've said it numerous times the MMPR isn't for anybody but the wealthy. It costs millions of dollars to even enter the market to sell over priced product only people that make $100,000+ a year can afford. When recreational gets legalized it won't be any better, prices will stay pretty much the same, just they will have millions more in the market that may only smoke on weekends or once in a while. This is in no way a "medical program", if it was there wouldn't be any qualifying for "compassionate pricing", it would be compassionately priced to fucking begin with.
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This is the latest info i could find:

The market that’s out there, the current marketplace, let’s talk about those 38,000 people. There are 38,000 people involved in it, but there are about 4,000 or 5,000 of them who are designated growers. So you take those out. Let’s say there are about 32,000 patients in Canada, okay? Once, 6,000 of those patients were buying from the federal government. They’ve already moved over to all the private industry MMPRs. So they’re gone.

So you take those 6,000 and that leaves you with roughly about 25,000 to 26,000 people who grow at home for their own benefit. Of those 26,000 people, 75% of them are on pensions and disability pensions. The average disability pension is about $880 a month. Now, you’re putting people who don’t have a lot of money in with a position of turning them into activists because they can’t afford six dollars a gram, frankly, they can’t afford 2.50 a gram. Those are the patients that will always grow at home and the government should just back off and let them grow at home. Those aren’t our customers and they never will be.

URL: http://www.midasletter.com/2014/05/canadian-medical-marijuana-industry-risks-opportunities/

It's a good read. Longer than most articles on the new program. From what I gather definetly less than 10k to split between all the LP's. That's excluding any completely new patients to the program.
 
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rpanon

Active Member
1 dollar a gram including taxes is possible and probable needed to undercut black market. Dana Larsen wrote a great article on it here: http://www.huffingtonpost.ca/dana-larsen/medical-marijuana-canada-prices_b_5051351.html

Wholesale marijuana for 10 cents a gram

I believe that a retail price of about $1 a gram would be low enough to eliminate most of the black market while still leaving plenty of room for tax revenue. This could mean a wholesale rate of about 10 cents a gram, with 40 cents in taxes and a 50 cent retail markup.

That of course would just be a base retail price. Just like a glass of wine in a fancy restaurant costs much more than the same amount of wine bought in a liquor store, so too would an after-dinner vaporizer session cost more than the same buds or hash bought at the cannabis store.
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oddish

oddish

Well-Known Member
The government wants these companies to be profitable so they get tax money on things besides just the sale of a gram.

I would be very surprised if an LP can create quality product for $1 a gram.
 
Devil Lettuce

Devil Lettuce

Well-Known Member
oddish said:
The government wants these companies to be profitable so they get tax money on things besides just the sale of a gram.

I would be very surprised if an LP can create quality product for $1 a gram.
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Only in a greenhouse IMO. With all of the overhead associated with the mandatory security, QA, reporting, insurance, etc. it would not be possible to produce within the MMPR framework indoors and only sell for $1 gram. The only way to do achieve this price would be in greenhouses, under a NFP framework such as the McLachlan Farm guys. This reporter has no idea about the overhead involved in this type of operation, and knows nothing about business in general.
 
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oddish

oddish

Well-Known Member
Devil Lettuce said:
Only in a greenhouse.
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True. I forgot about that and the fact that some LPs are going down that road.
There's still overhead from starting the business, paying salaries (QA people aren't cheap ;-)) and other things.
$1 might be possible, but less than a dollar (meaning they would make money on $1) seems completely unreasonable. Plus, you would have to take into consideration market saturation and the fact that producing enough marijuana for prices to go that low would require massive amounts of greenhouses.

Maybe one day, I just don't see it happening.
I also don't think the regulators would want it to.
 
R

rnr

Well-Known Member
lucky dreaming is free! it will not happen for 1$
and I don't think these guys will get in.....McLachlan Farm guys.
 
oddish

oddish

Well-Known Member
rnr said:
lucky dreaming is free! it will not happen for 1$
and I don't think these guys will get in.....McLachlan Farm guys.
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hard to say. I can't imagine Health Canada wanting that business model yet.. but they might string them along for a bit and approve them later.
 
qwizoking

qwizoking

Well-Known Member
All yearly costs, my bud is 37¢ per gram..on landrace sativas
I do dollar grams, its all about scale
I will say until its legal where I am, if I don't know you I do 100$ o's

Peoples prices are crazy
 
nsbudca

nsbudca

Well-Known Member
prices are still on the lower side which is good. with a 25% discount to people who qualify thats way cheaper than other lp's...i wonder what income you need to have to qualify though..delta-9 is offering a 30% discount if you make under 30,000 a year
 
oddish

oddish

Well-Known Member
If they're anything like Tweed they just expect to see welfare/government aid papers I imagine.
 
P

PeaceTrees

Active Member
nsbudca said:
prices are still on the lower side which is good. with a 25% discount to people who qualify thats way cheaper than other lp's...i wonder what income you need to have to qualify though..delta-9 is offering a 30% discount if you make under 30,000 a year
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I think delta just offers that discount on the first 30 grams ordered though right? I know some conditions apply for sure

All yearly costs, my bud is 37¢ per gram..on landrace sativas
I do dollar grams, its all about scale
I will say until its legal where I am, if I don't know you I do 100$ o's

Peoples prices are crazy
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That's great for you, but keep in mind you did not have to pay thousands and thousands of dollars as well as time invested to get the infrastructure in place to BEGIN production, and furthermore you don't need to spend money getting your product lab tested and complying with HC rules. These costs need to be taken into account when coming up with numbers for production cost/gram, I wonder how LP's will try and release this data.

With heavy sunk costs as far as I know no LP can say they're producing medicine for $1/gram or something because while it may cost them that AFTER they have their production infrastructure in place, can you assume all of it was just from a fairy waving her wand and nobody paying any money?
 
qwizoking

qwizoking

Well-Known Member
thousands and thousands of dollars as well as time invested to get the infrastructure in place to BEGIN production


I disagree.. but I already had a 6 figure salary (not trying to say I'm anywhere near wealthy, just that have plenty money saved)

When you scale up everything is super cheap. If I could throw an extra harvest at 4 a year my price would be cut to 28¢ per gram. The more you pump out the less the initial costs and fees matter, the ratio skews. Its simple economics and allows price drops. Lack of production means $20 grams lmao
 
T

tiger mt.

Well-Known Member
qwizoking said:
All yearly costs, my bud is 37¢ per gram..on landrace sativas
I do dollar grams, its all about scale
I will say until its legal where I am, if I don't know you I do 100$ o's

Peoples prices are crazy
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Your cost of production is 165 a pound for landrace sativas (long cycles/tough to trim)? Regrettably, I'm going to have to call BS on this one, does not even begin to add up. Maybe if you had acres to grow outdoor and used conventional open field farming methods, but here we would see B quality product at best with no guarantee to be free of bugs, pm, mold, etc. Trimming for this cost would not be an option either, you would need to do mechanical harvesting, milling the leaf and flower together.
 
qwizoking

qwizoking

Well-Known Member
Indoor...
Elec is about .10 per kWh
Pulling ~.75 grams per watt off a main flowering room..every 4 months.
I buy a new bulbs every year ~$60. ~$1120 a year in elec per 600 watt ballast and cooling along with the corresponding veg area.(1300 watts 24 hrs a day)
.75 x 600 = 450grams. X 6 harvests=2700 (I run flowering lights 24/7 and rotate to a dark room. So that's 2700 grams a year off the one 600.

So it costs me 1200(with nutes added in) to produce 2700grams with my current elec costs That's 44¢ per gram.
That's calculated off my current costs not average which is 37 and the "current" drops in winter also without the need for ac
 
R

rnr

Well-Known Member
I agree 100% you can NOT grow for that cheap in a large scale! paying staff, power, and hundreds of thousands more on yearly running costs.
I just love how a small grower can say what we should charge cause they THINK they know. lmfao
 
qwizoking

qwizoking

Well-Known Member
I had 167 per lb in my notes
Lol.. bro I've already got this modeled and its already running. When its legal here come talk your shit to me and see..
And yes I also run outdoor, for hash though. I pull a QP a week in flower off that. Again its already modeled paying for trimming etc . Dollar grams when its legal bro. Just because everyone else is a greedy asshole doesn't mean anything. Imagine if other crops could charge these prices, definitely wouldn't be such an obese nation


BTW I do have multiple lights and setups not just a 600
 
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oddish

oddish

Well-Known Member
qwizoking said:
Pulling ~.75 grams per watt off a main flowering room..every 4 months.
...
.75 x 600 = 450grams. X 6 harvests=2700 (I run flowering lights 24/7 and rotate to a dark room. So that's 2700 grams a year off the one 600.
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Just out of curiosity, are these consistent numbers or estimates based on the watts. It seems like a strange way to calculate, but maybe that's the norm. Are your harvests actually 450grams of usable product?
 
R

rnr

Well-Known Member
you don't put in your time, your losses from mold or bugs, if you have a power outage it throws off your plants causing nanners. you run a few 600hps compared to 5+ rooms running 60-100+ thousand watts, and 10 tonnes of A-C, 4 dehumidifiers per room, vegging rooms, drying rooms, baggies, labels, testing, storage tempature costs to keep bud correct humidity, shipping to help save patient $ and 20-50 staff that make 40k a yr and a Q.A that wants 100k a year. there is NO way we can compare the same states. it is nothing alike.
but if you and hippy get together you can talk all the shit you want to, lol
 
oddish

oddish

Well-Known Member
rnr said:
but if you and hippy get together you can talk all the shit you want to, lol
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I may not agree with everything you say, but this part is spot on :)

There are massive costs associated with LP status, including but not limited to the fact that they have to pay a mortgage on a building, pay back all startup costs from the application process, pay employees on an ongoing basis, build an expensive ass safe, run a lab, etc.

Growing in your basement didn't take any of that into account, especially not your own time as rnr pointed out.
If time was free there are plenty of things I could do for 44 cents too.
 
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