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(Marijuana Business Daily)   How to lose money dealing legal weed   (mjbizdaily.com) divider line
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1124 clicks; posted to Business » on 26 Jan 2022 at 9:50 AM (16 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



31 Comments     (+0 »)
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2022-01-26 6:43:46 AM  
Making it legal makes it harder to make money.  No taxes when it was illegal.
 
2022-01-26 6:45:32 AM  
Top executives envisioned

Well, there's your problem.
 
2022-01-26 7:36:03 AM  

PaulRB: Making it legal makes it harder to make money.  No taxes when it was illegal.


Nor age based discrimination prohibition.
 
2022-01-26 9:54:36 AM  
Read the headline and immediately thought "California." Was not disappointed.

Of all the places to screw up legal pot, I never would have guessed California.
 
2022-01-26 9:57:13 AM  
And that is probably how it was designed to work too, make it very hard to turn a profit so it would go under and fail. It isn't like the illegal sale of it, they don't have regulations or pay taxes.
 
2022-01-26 10:03:43 AM  
Saddling the legal markets with too much burden and expense will keep the black market alive and well. Who knew?
 
2022-01-26 10:03:59 AM  
The only thing that makes marijuana "profitable" is it being illegal.

And it was never really a profitable drug business to be in unless you were the grower or moving tons of weight.
 
2022-01-26 10:11:49 AM  
Not sure about Washington, but they and Colorado were the first.  And Colorado set a template for those states that followed, on how to do it correctly.  But no, you knew better.
 
2022-01-26 10:26:58 AM  
Legalization?  Be careful what you ask for.  Oops, too late!
 
2022-01-26 10:36:03 AM  
I bet they had real fun blowing through other people's $200 million before it all crashed.
 
2022-01-26 10:38:49 AM  
"Small batch", "big cannabis", "craft cannabis"...

Yeah I get the sense they weren't in the pot business - they were in the, "shaking down investors" business.
 
2022-01-26 10:57:43 AM  
New industries must still be paired with a decent business plan and a focus on profits. Next, at 11...
 
2022-01-26 11:35:55 AM  
I remember the good old days when Fark believed that the gusher of taxes from legal pot would fund utopia.
 
2022-01-26 11:38:06 AM  
Ahh another, we're not really going to do anything or be anything on our own, we're aimed at a middle man position.

here was the one real business goal of what all they said:

"the world's largest cannabis supply chain"


you know, they wanted to be the Diamond Comics of weed. Produce nothing, but control everything.

Where they don't really have to create a dam thing personally, they woudl just "help" the farmers do the work while the farmer takes the risks on their growing turning into a worthwhile payday or not.
And then they would be part of "helping" the farmer get their product form field to market, again as a paid up front middle man service, not as part of the risk taking venture WITH the farmers.
 
2022-01-26 12:02:45 PM  
I wonder if part of the problem for lots of these businesses they based their plans on quickly going national, and the country hasn't kept up.
 
2022-01-26 12:12:12 PM  
I love the strong business decisions

- Bought historic vineyard = overpaid for real-estate
- Went small, not scale = niche, boutiquey for people but no big marketing/endorsement to draw attention
- tourist center??? Strain testing farm/lab?  It couldn't decide what it wanted
- Business determined by ownership, not by market
- flooded market

This was someone's dream that didn't match reality.  They built it, no one came.
 
2022-01-26 1:21:31 PM  
FTFA:  "Due to the current state of the cannabis market in California, we have decided to implement a reduction in force."

Translation:  We tried to charge too much for the merchandise we were selling, and the market wouldn't bear it.
 
2022-01-26 1:23:40 PM  
Further accelerating Flow Cannabis Co.'s fall was the fact its high-stakes wager was predicated on the federal government legalizing marijuana.

Wake me up when weed is truly legal, subby.
 
2022-01-26 1:51:16 PM  
Don't get high on your own supply.
 
2022-01-26 6:10:13 PM  
Don't open a place in California?
 
2022-01-26 6:38:11 PM  

kindms: The only thing that makes marijuana "profitable" is it being illegal.

And it was never really a profitable drug business to be in unless you were the grower or moving tons of weight.


I don't really buy that idea. If that was true, there would only be 3 beers avaiable in the whole U.S.. People want to get effed up.

I can buy over saturation. I can still buy farmers market produce despite Monsanto existing. I think the big folly was the pot goldrush. Lots of risk, lots of reward. But a lot of risk.

I'd grow an acre of weed, sell it in the summer to fund my getting high hobby for a year. If I had an acre.
 
2022-01-26 6:49:03 PM  

common sense is an oxymoron: Further accelerating Flow Cannabis Co.'s fall was the fact its high-stakes wager was predicated on the federal government legalizing marijuana.

Wake me up when weed is truly legal, subby.


Sounds to me as if Mr. Steinmetz and his friends should have waited until federal legalization before they expanded their operations.  Oops.

The federal government isn't responsible for Mr. Steinmetz's bad business decisions, you should know.  And it's certainly not responsible for the fact that the prices he wanted for his merchandise were too high for the market he was competing in.

/subby
 
2022-01-26 7:07:40 PM  

PaulRB: Making it legal makes it harder to make money.  No taxes when it was illegal.


That's not really true I bet with all the bribes and paying people to run the drugs. It probably is just less cool because its legal.
 
2022-01-26 7:25:33 PM  

tirob: common sense is an oxymoron: Further accelerating Flow Cannabis Co.'s fall was the fact its high-stakes wager was predicated on the federal government legalizing marijuana.

Wake me up when weed is truly legal, subby.

Sounds to me as if Mr. Steinmetz and his friends should have waited until federal legalization before they expanded their operations.  Oops.

The federal government isn't responsible for Mr. Steinmetz's bad business decisions, you should know.  And it's certainly not responsible for the fact that the prices he wanted for his merchandise were too high for the market he was competing in.

/subby


Poor business decisions happen, and none of Flow's business decisions change the fact that cannabis is not fully legal in the US in spite of your misleading headline. In fact, it seems to me that regardless of how unsuccessful their business decisions may have been in the short term, companies like Flow are playing a key role in the ongoing drive for federal legalization, one which even you have acknowledged will ultimately be successful. I can think of better things to do than yell in futility at clouds of pot smoke, but you do you.
 
2022-01-26 7:56:57 PM  
I've got a half-dozen stores within a five minute drive. It's amazing what customer service will get you. One place has a burly dude who grunts and says "I'll get it from the back" then disappears for ten minutes. Another store has a bunch of friendly staff that will show you and explain about every bit of product they sell. But when the crappy places fail they'll blame wages, or the black market, or anything other than their own simple business failures.
 
2022-01-26 8:39:20 PM  

common sense is an oxymoron: none of Flow's business decisions change the fact that cannabis is not fully legal in the US in spite of your misleading headline.


The minmods changed my headline slightly.  When I submitted it, it read "How to lose money dealing weed."  No, weed isn't fully legal here yet.

common sense is an oxymoron: , it seems to me that regardless of how unsuccessful their business decisions may have been in the short term, companies like Flow are playing a key role in the ongoing drive for federal legalization,


If we're talking about businesspeople who are advocating for legalization, I'd say that people like Charles Koch and Jeff Bezos have much more clout than Michael Steinmetz.

https://www.forbes.com/sites/willyakowicz/2022/01/25/republican-congresswoman-nancy-mace-is-on-a-mission-to-legalize-cannabis-and-amazon-just-got-behindher/

common sense is an oxymoron: . I can think of better things to do than yell in futility at clouds of pot smoke, but you do you.


Conversely, I can think of better things to do than argue in favor of adding weed to the list of unhealthful substances that we charge the police with protecting the trade in.  And I think I have that belief in common with Justice Sotomayor:

http://marijuanapolitics.com/supreme-court-justice-sonia-sotomayor-dismisses-marijuana-legalization/
 
2022-01-26 10:33:55 PM  

tirob: And I think I have that belief in common with Justice Sotomayor:

http://marijuanapolitics.com/supreme-court-justice-sonia-sotomayor-dismisses-marijuana-legalization/


Doubtful. Justice Sotomayor goes on to say, "Even that has people who have been passionate and have accomplished something," which hardly sounds like the sort of mindless condemnation you display.
 
2022-01-27 3:37:14 AM  

kindms: The only thing that makes marijuana "profitable" is it being illegal.

And it was never really a profitable drug business to be in unless you were the grower or moving tons of weight.


It's really the easiest thing I've ever knowingly and willingly grown.  I threw 4 plants in the ground last spring and using only a watering timer and organic bug repellent (so stinky) managed to pull about a pound off them in the fall.
This year I'll trim and fertilize properly.
It really is a weed, growing it is simple and cheap, and anyone can do it if you have a sunny spot. Hell with the auto flowering strains you don't even need a light shift for them to flower. You can grow those on your counter top.

It may not be top shelf weed but it very much gets the job done and I feel kinda neat knowing I grew it.  Total investment was around $100 for the plants (two clones and two seeds) and with actual attention given to them my yields would have been much better.

Here in Oregon weed went from being illegal to annoyingly corporate in about five years. It's nice to do it myself.

Next up is growing mushrooms.
 
2022-01-27 5:30:14 AM  

common sense is an oxymoron: tirob: And I think I have that belief in common with Justice Sotomayor:

http://marijuanapolitics.com/supreme-court-justice-sonia-sotomayor-dismisses-marijuana-legalization/

Doubtful. Justice Sotomayor goes on to say, "Even that has people who have been passionate and have accomplished something,"


Not an endorsement of the cause any way you slice it.
 
2022-01-27 10:36:37 AM  
I don't understand how people can profitably grow corn which yields about $5/plant and these guys can get over $1000/plant and lose money.
 
2022-01-27 1:55:28 PM  

SoundOfOneHandWanking: I don't understand how people can profitably grow corn which yields about $5/plant and these guys can get over $1000/plant and lose money.


What the hell kind of corn are you growing?
 
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