Are Dispensary Days Numbered?

[+EdwardGlen]

Guess our IT guru needs to put together and e mail widget for DC and Flood Pres.Obama and whom ever else that needs to be informed of the home based terrorism being used against American citizens.

 

Ed

[+Annnie]

Not what this "yes" vote was thinking. I know that for a lot of folks out there who could benefit from MM, well run storefront dispensaries are the only option. I think about my grandparents who knew nothing about marijuana. They've passed, but if they had a doctor recommend them MM, they wouldn't have any clue where to even start looking aside from a dispensary.

 

Yes, patient/caregiver system works for many, but not all.

I totally agree with you here lcg.. the system does not work for all.. I believe that kind of has to do with the whole statewide co-op thingy that we seemed to entertain for a while. ALOT of ppl have been excluded from that system. I truley believe that compassion clubs need to work alot harder to meet the needs of All the ppl who come to them for help and not just the in crowd.. AND of course the whole ccs are illegal and fear that the feds or leo will pop in at any minute with guns drawn doesnt help ccs to fulfill their potential for helping.. ALso i have witnessed with my own little eye cgs or pts who dont offer the meds to poorer pts because they can get alot more from the connosuers.. sad..

If ccs werent so under the gun they could prolly be alot more helpful at meeting the needs of all ppl..

[+EdwardGlen]

 

 

 

U.S. Attorney Melinda Haag.......

 

 

 

..... looks like she knows about taking medicine

 

 

 

 

 

I wonder if she would pass a drug test?!

[thanks2]

I couldn't get your link to work, curious enough about your resources though.

In my book you get an oz for 150 then off it for 360 is 240% interest ! Same with the 240 z goes for 574 !

 

Thinking about opening a dispensary are you ? 150 + 58% = $237 ; 240 + 58% = $379.20 Typical retail is 40 - 50 %

Not me. I am not even brave enough to do a P2P. Anyways, you have the math backwards. It goes like this.

 

150/360=.42-1=.58 or 58%. With a little algebra you come up with the generic formulas.

cost/retail=margin-1

so

cost=(margin-1)*retail

so

cost/(margin-1)=retail

so

150/(.58-1)=retail

so

150/.42=357or 150*2.38=357

 

 

Cost $ X 2.4 = 58.3% Margin (Cost $50 X 2.4 = $120 Retail)

 

Retail Markup Formulas Guide

The link

 

Retail Markup Formulas Guide-THE HALLMAN COMPANY-Retail Consultant

 

Here is the guide for what to multiply the cost on an item by, in order to arrive at a desired or target markup percentage.

 

 

 

[Multiply the Cost times the Appropriate Number Below-

 

Then, if Necessary, Round the Result Up or Down To Get To

 

A “Pretty Number” For The Selling Price]

 

 

 

 

 

Multiply Cost $ of Item To Get A Retail Price Which Will Give You The Following Margins:

 

 

 

Cost $ X 2.0 = 50% Margin (Ex.: Cost $50 X 2 = $100 Retail, Which is 50% Margin) Note: A 50% margin is also called "keystone" pricing.

 

 

 

Cost $ X 2.1 = 52.4% Margin ( Cost $50 X 2.1= $105 Retail, Which is 52.4% Margin)

 

 

 

Cost $ X 2.2 = 54.5% Margin (Cost $50 X 2.2 = $110 Retail)

 

 

 

Cost $ X 2.3 = 56.5% Margin (Cost $50 X 2.3 = $115 Retail)

 

 

 

Cost $ X 2.4 = 58.3% Margin (Cost $50 X 2.4 = $120 Retail)

 

 

 

Cost $ X 2.5 = 60% Margin (Cost $50 X 2.5 = $125 Retail)

 

 

 

Cost $ X 2.6 = 61.5% Margin (Cost $50 X 2.6 = $130 Retail)

 

 

 

Cost $ X 2.7 = 63.0% Margin (Cost $50 X 2.7 = $135 Retail)

 

 

 

Cost $ X 2.8 = 64.3% Margin (Cost $50 X 2.8 = $140 Retail)

 

 

 

Cost $ X 2.9 = 65.5% Margin (Cost $50 X 2.9 = $145 Retail)

 

 

 

Cost $ X 3.0 = 66.7% Margin (Cost $50 X 3 = $150 Retail)

 

 

 

Fashion stores, generally, should strive for an average markup of at least 56%

 

(Cost X 2.3) in clothing and shoe classes. Most Accessories and Jewelry classes should be higher-

 

From 2.5 (60%) to 3.0 (67%) or even more, if the market will bear it. Some hardlines and Sporting Goods industry stores may have trouble getting even 50% on some classes, but markdowns are not normally such a factor due to seasonality, trendiness, broken size assortments, etc.

[bobandtorey]

Blinded by greed they're willing to turn their collectives back on patients and caregivers alike with-out a second thought to either.

 

Farmers Markets are the way to go IMO. The ones I've read up on and been to are all heavily patient oriented and donations asked are no where near stand alone dispensaries and yet vendors have no complaints and return to the next ones.

 

They had all types of events and entertainment at the one we attended last fall it resemble a county fair and the atmosphere felt that way for sure. cooking demonstrations, growing techniques, had one with cannabis and other vegetables growing together, and so on, it was a great time.

 

And they take care of low income patients like dispensary never would and thats through medicinal quality cannabis specifically grown for those patients and caregiver and patient overages.

 

Ed

 

 

wasn't this the same as the waterford café was doing it sounds like it when i was their

[thanks2]

wasn't this the same as the waterford café was doing it sounds like it when i was their

You are correct bob.

[hofner67]

Dispensaries have been a convenient way for me to acquire seeds and clones. In that way they fill the gap in the law of how to get started. I, however, can't see where I would use them for meds.

[marijones]

I think dispensaries offer "variety" that a Cg may not be able to:medibles,tinctures, others...profit motive does stand out.

[grewett]

After the feds raided at least 10 medical marijuana shops across Montana yesterday, KTVQ in Billings interviewed former U.S. Attorney Bill Mercer, who said, among other things, that the raids, while invoked by federal law, probably targeted dispensaries that violated state law, too. Here's the video:

 

http://missoulanews.bigskypress.com/IndyBlog/archives/2011/03/15/former-us-attorney-bill-mercer-discusses-medical-marijuana-raids

 

 

If state law does not contain specific dispensary-enabling language, the FEDs will target the dispensaries in that state. Michigan dispensary owners take note!

 

The only MI dispensaries with a defense of operating under the shield of the law are 'Chamberlain model,' until/unless Burdic's appeal is heard by appeals court. Every keystone shop is vulnerable, and has not the thinnest guise of operating under the law, yet they flaunt Chamberlain's guide. Just because the model adds complexity and inconvenience--like seat belt and helmet laws do to motoring--in an attempt to circumvent sales and make them transfers--doesn't mean it isn't the law. We are ahead of MT--they never had a judge pass on the legitimacy of dispensaries or give 8 pages of guidance "how to legally operate a dispensary" ala Judge Chamberlain.

[+420Atheist]

 

From 2.5 (60%) to 3.0 (67%) or even more, if the market will bear it. Some hardlines and Sporting Goods industry stores may have trouble getting even 50% on some classes, but markdowns are not normally such a factor due to seasonality, trendiness, broken size assortments, etc.

I'm not sure where they got these numbers from. First off I think you are confusing hard goods (what these number represent), soft goods, and food items. Each are treated to different markups. For example I can tell you exactly what Best Buy, CDW, and others use for some computer and technology items. It is the same markup we use. 8% Yup that is how thin the margins have become in technology. They can get away with it because they sell such quantity. I have even seen CDW sell some items below their cost to get you to buy the other items. (by the way this does not apply to cables and ink. The markup on that stuff is through the roof.)

 

In the end it is exactly what you said about markups. They will markup whatever the market will bear. I still believe commercialization through larger retailers will always attempt to push out the competition. That means the caregivers. once competition is gone then they can set the price.

 

I guess I just don't buy the "I can't find a caregiver" comments. There are many of them and many that will transfer p2p without you even needing to sign up with them. Don't like what you got then don't go back.

[thanks2]

I'm not sure where they got these numbers from. First off I think you are confusing hard goods (what these number represent), soft goods, and food items. Each are treated to different markups. For example I can tell you exactly what Best Buy, CDW, and others use for some computer and technology items. It is the same markup we use. 8% Yup that is how thin the margins have become in technology. They can get away with it because they sell such quantity. I have even seen CDW sell some items below their cost to get you to buy the other items. (by the way this does not apply to cables and ink. The markup on that stuff is through the roof.)

 

In the end it is exactly what you said about markups. They will markup whatever the market will bear. I still believe commercialization through larger retailers will always attempt to push out the competition. That means the caregivers. once competition is gone then they can set the price.

 

I guess I just don't buy the "I can't find a caregiver" comments. There are many of them and many that will transfer p2p without you even needing to sign up with them. Don't like what you got then don't go back.

Technology has one of the worst margins next to food, you are correct. Best Buys margin is 27%. The 8% was probably their net profit.

My link

Edit:Sorry, I did not understand. The 8% is your margin or the margin on some things where the 27% is the average on all items.

 

Krogers is 21.8%.

My link

 

Pfizer gross margins are 82%

My link

 

Johnson and Johnson is 70%

See above link.

[+mayorherb]

Blinded by greed they're willing to turn their collectives back on patients and caregivers alike with-out a second thought to either.

 

Farmers Markets are the way to go IMO. The ones I've read up on and been to are all heavily patient oriented and donations asked are no where near stand alone dispensaries and yet vendors have no complaints and return to the next ones.

 

They had all types of events and entertainment at the one we attended last fall it resemble a county fair and the atmosphere felt that way for sure. cooking demonstrations, growing techniques, had one with cannabis and other vegetables growing together, and so on, it was a great time.

 

And they take care of low income patients like dispensary never would and thats through medicinal quality cannabis specifically grown for those patients and caregiver and patient overages.

 

Ed I havent seen one dispense give to the community.. They sure fill there pockets and buy up other buildings and start another dispense..BUT what do they give back to there clubs? or Clubs in there area? Pretty much laugh and joke bout ALL THE MONEY THEY PUT IN THERE POCKETS..End of it.

they are for them selfs , only..

[+420Atheist]

Technology has one of the worst margins next to food, you are correct. Best Buys margin is 27%. The 8% was probably their net profit.

My link

Edit:Sorry, I did not understand. The 8% is your margin or the margin on some things where the 27% is the average on all items.

 

Krogers is 21.8%.

My link

 

Pfizer gross margins are 82%

My link

 

Johnson and Johnson is 70%

See above link.

 

 

Yes like everyone else we do have higher margins on cables and ink and the smaller items. I'm not sure what the average is but most all items over $100 is 8%. I know what Best Buy and CDW and most others are because we buy from the same wholesaler and I see those guys at the conference every year. 27% must be because they sell more cables and software than computers. We don't mark up software like they do but then we don't sell the same software either. Ours is mostly business applications and theirs is mostly games. I'm not sure what that markup is.

 

As you point out in this post markups are all over the place. I think dispensaries are new territory and what is a fair markup has yet to be determined. I stand buy the premise that dispensaries are in opposition to caregivers.

[bobandtorey]

Here's more from the present U.S. Prosecutor from the 9th District.....

 

http://www.csindy.co...r&show=comments

 

 

I hope I'm wrong but it looks like dispensaries here have a rough road ahead.

 

 

In a related story, Montana advocates rally in support of dispensaries.....

 

http://the420times.c...d-for-saturday/

 

 

thanks but now the game has changed

[+EdwardGlen]

It is time that the dispensary owners stop talking to the state. Nothing can be gained by their attempt to trade our rights for theirs. Dispensaries need to try to repair ties to the community or their days are numbered. The recent articles describe in detail what is coming down the pike. The problem they face is they have destroyed their credibility with the community and even as of today, are trying to cut a deal for themselves in Lansing. No deal can save you.

 

I've been busy conveying our sentiments to these folks for the last couple of days. I have been honest and fair. My assessment to them of the treatment of this community and patients is bleak. So I guess the question needs to be, are they worth saving? If so, how do we keep history from repeating itself. What do they owe to the community for past deeds and what should be the governance that should be placed over them to prevent a recurrence. I wait to hear from you folks! Thanks, Joe

 

If the state allows them (which I really doubt) a few conditions I'd like to see in place for all that do stick around.

 

1) They stock 85% Michigan grown Cannabis - Supplied by QP and or CG overages and from specified growers

 

2) Benevolent Programs - That help low income patients with highly reduced prices and free medication to those who qualify

 

3) Strain information on containers - THC% and so on ('Mind-Warp' doesn't tell me squat about the medicine)

 

4) Standardized Quality Control - Backed by inspections of premises and medication on hand and coming in

 

Ed

[hofner67]

It is time that the dispensary owners stop talking to the state. Nothing can be gained by their attempt to trade our rights for theirs. Dispensaries need to try to repair ties to the community or their days are numbered. The recent articles describe in detail what is coming down the pike. The problem they face is they have destroyed their credibility with the community and even as of today, are trying to cut a deal for themselves in Lansing. No deal can save you.

 

I've been busy conveying our sentiments to these folks for the last couple of days. I have been honest and fair. My assessment to them of the treatment of this community and patients is bleak. So I guess the question needs to be, are they worth saving? If so, how do we keep history from repeating itself. What do they owe to the community for past deeds and what should be the governance that should be placed over them to prevent a recurrence. I wait to hear from you folks! Thanks, Joe

 

I think we shouldn't allow the Act to be amended to get rid of them.

 

And EdwardGlen has some good ideas for them to show how much they support the patients and local growing.

 

In this context, the dispensaries should see that working with patients(3ma) is their best protection.

 

I think there has got to be a beneficial coalition in there somewhere.

[Guest OxXGarfieldXxO]

I think the only thing I disagree with Edward on is this:

1) They stock 85% Michigan grown Cannabis - Supplied by QP and or CG overages and from specified growers

 

IMO it should 100%. Since Ohio, Indiana, and Wisconsin are not MMJ states(yet), there's no legal transport of meds to our state. MMJ in a land vehicle breaks whatever laws the state they travel though has, and by air everything would be illegal since anything to do with planes is federal. Meds crossing the Us/Canada boarder would again be dis-allowed because of being under federal jurisdiction.

 

Sure I'd love it to be legal everywhere, but I'm not willing to push the envelope to get 15% of out-of-Mich meds.....Worry about this state first, then we can address other methods.

[bobandtorey]

I think we shouldn't allow the Act to be amended to get rid of them.

 

And EdwardGlen has some good ideas for them to show how much they support the patients and local growing.

 

In this context, the dispensaries should see that working with patients(3ma) is their best protection.

 

I think there has got to be a beneficial coalition in there somewhere.

 

I think we shouldn't allow the Act to be amended to get rid of them. but it's not inn the act and if we open up the Law we are done IMO

IT wont be good for us

but Ed does have some good points

[Brad]

Colorado just released a draft proposal of the rules they expect dispensaries to operate under. Some good reading for dispensary owners and those who would like to open one. This is eventually where Michigan will go if lawmakers allow dispensaries to operate here.

 

http://www.coloradoan.com/article/20110319/NEWS01/103190376

 

Colorado Department of Revenue website where a copy of draft rules can be downloade:

http://www.colorado.gov/cs/Satellite/Rev-Enforcement/RE/1251575119584

 

 

Personally, I think dispensaries are needed to ensure supply and choice. I have also told every dispensary owner I've talked to about the need for security and that they need to operate their dispensaries like a Walgreens or Rite Aid. Those businesses have an array of security measures, and their employee undergo a screening process and training programs.

 

Unless and until the U.S. Congress removes cannabis from Schedule I status, it must be handled like any other prescription narcotic so politicians and law enforcement will understand that cannabis is once again a part of the U.S. pharmacopeia, and stop harassing patients and caregivers.

 

Be careful about insisting that all dispensary cannabis be grown in Michigan. As bad as we need the jobs and income, the greedheads and lawmakers will probably use a change like that to monopolize the cultivation business and try to stop patienst and caregivers from growing their own. This is a complex issue but I would suspect protecting grow rights is a top priority on this site, so be careful about what you wish for!

[DayTripper]

Dispensary people should work for a New dispensary law; but like some have said be careful what you wish for.

 

I answered NO on the survey because I had no other choice besides YES.

 

Dispensaries are great if you can afford them and the suppliers are the caregivers and patients of Michigan.

If more meds are needed to supply them ask in the law for Dispensary grower cards that can't have more than 60 plants.

Let's say ou can't be both a caregiver and a grower; that way you aren't doubling the size of current legal grows and pissing off the public. But write in that P2P is protected as a source as well. In other words - don't exclude, or outgun, Caregivers/Patients who want to supply; but also set up a similar small grow system to insure the dispensaries can recruit growers if they need them.

 

Maybe if the money wanted to treat the Caregiver/Patients as valuable as they really are to the Dispensaries success, and stop throwing them under the bus, maybe then an agreement could be reached where all can support each other without bitterness and mistrust.

[+wolfgang]

Many legal observers agree that Colorado has the best chance of fighting the feds in court because it is the only state whose medical marijuana law is actually in the state Constitution.

Too bad Mich wasnt.

are they smokin crack in DC because Im pretty sure this administration said they werent going to wasnt recourses on these types of raids. Piece's of bunny muffin.

[GreenFunk]

Personally, I think dispensaries are needed to ensure supply and choice.

 

Thank you Brad. Everyone's situation is different. It's hard to read others comments saying that patients should be able to deal with a CG or club, no matter what.

 

There's times where I feel so crappy that I can't deal with waiting for a CG to be free to come visit me. Or to go to a club & find something there. Sick people don't always feel up to socializing, just because they need medicine. Sometimes, when you feel really bad, you just want to find your medicine quickly. Get in, get out & go home & rest with your medicine.

[bobandtorey]

Thank you Brad. Everyone's situation is different. It's hard to read others comments saying that patients should be able to deal with a CG or club, no matter what.

 

There's times where I feel so crappy that I can't deal with waiting for a CG to be free to come visit me. Or to go to a club & find something there. Sick people don't always feel up to socializing, just because they need medicine. Sometimes, when you feel really bad, you just want to find your medicine quickly. Get in, get out & go home & rest with your medicine.

 

i wish it was that easy we have not been able to sleep we are worried that are door will be comimg down because of Leo wants are cash and Meds

[GreenFunk]

i wish it was that easy we have not been able to sleep we are worried that are door will be comimg down because of Leo wants are cash and Meds

 

Oh I definitely don't think anything about this topic is easy, don't get me wrong. There's many details to work out.

I just know there's patients who definitely benefit from dispensaries, like me. That's all I meant.

[bobandtorey]

Oh I definitely don't think anything about this topic is easy, don't get me wrong. There's many details to work out.

I just know there's patients who definitely benefit from dispensaries, like me. That's all I meant.

 

 

oh i understand no worry's