There is much more in fact, as amply demonstrated in the MMJ Business Factbook 2016 that’s now available. Since California first took tentative steps to decriminalize medical marihuana in 1992, twenty-two more states have joined the campaign – and you can smoke your pot for pleasure in Alaska, Colorado, Oregon, and Washington with good money coming from it too.
U.S. Cannabis Retail Sales Estimates
As the medical marijuana industry emerges from the shadows, new entrants are learning a new lingo and methods that previously cloaked activities from the unconverted. Nowadays pretty much everyone know that ‘bud’ refers to marijuana flowers. As growers became more sophisticated, they adopted the tomato-growing habit of nipping out the tender side buds to produce one larger, more potent one. With dispensary operations becoming more prevalent the bar tenders of marijuana, or ‘bud tenders’ play an important role, particularly for the novice clients/patients.
Nowadays you are likely to encounter an intelligent bud tender across the counter in a marijuana dispensary, not a stoned punk as stereotypes might have some imagine. These are among the most favored positions in the industry. This is especially true for a young generation keen to polish their marijuana knowledge at places like the Oaksterdam University in Oakland, CA, that punts itself as America’s first and premier cannabis college.
Bud tender positions are popular because they are one of few roles where it’s possible to meet and greet medical marijuana customers directly, and exchange hot tips (of the intellectual kind) for enhancing the experience. As in the case of some fast food restaurants, the habit developed of putting out tipping jars for happy customers to fill. This also opened up the possibility in law enforcement minds that some sales could end up as ‘tips’ thereby avoiding sales tax, and they banned the practice.
HelloMD is the medical marijuana equivalent of the ‘find a handyman sites’ that used to proliferate the Internet. For a fee, it connects patients to medical marijuana service providers, while providing a host of related free information to ensure user retention. HelloMD published a survey aimed at dispelling the impression that medical cannabis patients are little more that potheads, and it thinks it proved the point.
The Core Finding of the Medical Marijuana Patient Survey
The report states under its conclusions that, “… the prevailing perception of a medical marijuana patient is a masquerading recreational user (a stoner)” is unfounded. “78% of those using cannabis for health and wellness are above the age of 25 … these people are highly educated working professionals. Many are parents. They could be your friends, your colleagues, or your neighbors.
“All of them have legitimate health issues … our research and analysis show a much larger portion be genuinely seeking an alternative to traditional medication for improved health and wellness”. Here’s a key table lifted from the report that is of intense interest to those either trading in, or thinking of entering the lucrative medical marijuana market.
Walking into the Sacramento board of equalization(BOE) tax agency on quarterly sales tax day, one might think they were selling medical marijuana themselves. If we went into the back office and saw the overflowing safe and wads of banknotes on the desks, our suspicions could increase, although we would still not be correct.
One of the stranger twists in the tale of medical marijuana in the States, is people wanting to pay their sales tax are unable to do so by direct deposit, EFT, or any other traditional banking method. This is because cannabis is still illegal in any form from a federal viewpoint, and the nation’s banks are wary of being mixed up in a Federal Reserve bust.
This leaves licensed medical marijuana dispensaries – along with growers, distributors and other marijuana-related businesses only one choice. This is to do everything by cash. However, this is not ideal for the Sacramento tax collection agency that was designed to receive checks and electronic payments.
Federal approval of medical marijuana would be on the 2016 schedule were it not for the nature of the product. With 22 states out of 50, plus Washington DC having made it legal – and Alaska, Colorado, Oregon, and Washington State approving initiatives – simple math would appear to have the day. So why is medical marijuana not on Obama’s agenda for his twilight 2016 session? The man seems personally positive about it.
The potential medical benefits could finally tip the scales, with notable success for stubborn conditions like Alzheimer’s, Epilepsy, Parkinson’s, Type 2 Diabetes, and some types of Cancer responding well in clinical trials. If medical science cannot crack these tough nuts, then why, oh why can’t millions of chronically or terminally ill people have it? Especially since a recent CBS poll found 84% of respondents in favor of medical marijuana useage.
There has been huge growth in the American cannabis industry since 2012, when it dawned on business that the government was going to legalize medicinal use sooner than later. Start-up costs began at less than $5,000 for home growers to over a $1 million for top line extraction equipment. Since then, average time to profit has been little short of phenomenal.
How the Cannabis Industry is Faring
Compared to other start-ups, marijuana is doing better than most, especially given the controversial nature of the product.
– 3% are facing ‘significant losses’
– 15% are ‘losing some money’
– 28% are at breakeven point
– 38% are ‘modestly profitable
– 16% report say they are ‘very profitable’
Where there is profit it comes fast, with 62% claiming success within 12 months, and only 6% taking more than 3 years. Compare that with dot com technology, where some of the biggest names are still bleeding money. Some day you could rue not casting your net, while the fish were running in such numbers.