Wholesaling cannabis can be tricky, but it does give you a fair amount of options for what to do with that extra product. For one, you can control the amount you sell depending on market prices. You can use it to create products of your own or white-label it with some other company. You can even use it for bartering to help out a struggling friend in the business. These are just some of the possibilities that Tony Frischknecht sees as he makes the case for wholesale as a feasible, if not lucrative business model. Listen in for more.
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Is Wholesale The Answer? – The Perks Of Having A Big Stash
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Wholesale, I know you guys out there are like, “Wholesale, that’s what I want to do.” There are some of you who are like, “I just want to grow enough for my store because that’s all I have money for.” Wholesale is tricky. What I wanted to bring to you are a few great items. I’ve got three things I want to talk about now. With wholesale, you can potentially create yourself a nice little savings account. What I mean by that is if you‘re growing a good product, you’re able to store it for when the markets are at the right price and you’re able to capitalize on higher rates at the time. Everybody is in a different market. I want to make sure that I make everybody well–aware. Everybody is different. What might be high right now for you may be low for you in six months. You have to remember.
The industry is commoditizing flower and cannabis. Some of you are already feeling this. People who are not, I want you to be aware that it is a possibility. Understanding your wholesale and the future of what that’s going to do for your company is a major part of this. When I say major, creating that little savings account in there for you is something that is legitimately a savings account. It can save you if you have to make payroll. If you have lots of bills you’ve paid, you’re like, “I need to liquidate.” Sometimes it’s unfortunate, but you have to sell it for less than what you grow for. It’s a terrible thing. For those of you out there who have done it, I know the feeling. I’ve done it as well.
If you’re smart about it, you can be strategic when you’re releasing your wholesale, when the market is at its highest. Back to the old saying, “You always want to sell high. If you can get in there at the lower cost and sell it high, that’s good.“ If you have the cash to buy what you think is a good product to save it for later because you don’t have the growing capacity yet in your grow or facility that’s feeding your inventory to your store, that’s a great way to do it too, but this goes back to judging your quality. Also, preserving it in the storage. You’ve got to make sure it’s sealed up nicely. There’s a ton of different ways to do it. I don’t know one way is better than another. There are better ways to do it. Do your research on that. I’m not going to go into that now with you, guys.The amount of options that are created with large amounts of product is incredible. See for yourself if cannabis wholesale works for you! Click To Tweet
Number two, this biomass, this excess flower that you may have either in storage, you can take and turn it into products that you can create, brand it for yourself. Some of you might be like, “I don’t have the capacity to make it.” Fortunately, there’s a lot of people who are working in the industry that you can partner with to develop these products for you. You don’t have to have all the infrastructure to say, “I want to create an edible.” We used to talk to extraction companies. They would make us tinctures and they would make us our edibles. We have branded stuff.
You can do it in two ways. You can create your own brand or white–label your stuff. Branding gets your name out there more. If you have a consistent product, it might turn into a much bigger part of your revenue than you think, especially if you get your name out there and everybody starts becoming aware of this amazing edible that you’ve created. That’s a great way to spread your brand out. Also, take advantage that you produced this product or you bought this product at a very cheap price, this biomass, and now you’re converting in something that’s sellable. Your product is not deteriorating on the shelf.
The next big thing is that if you have 20, 50, 100, 200, 500 pounds of this product and you have in storage, you can make some big moves. What I mean by that is you can sell 100 pounds or several hundred pounds at once at a good rate to get quick cashflow and revenue on your P&L sheet for the year, which your investors want to see that’s good or just owners of the business want to take advantage of. You can also use it as bartering. There are going to be people who are around you who are suffering or hurting. They might be friends of yours. They may be competitors. Who knows? However, if you’re going to be working in the industry, you’re going to come across this. If you have that extra product that’s sitting there waiting for something, you can start creating something with somebody else potentially, so having that in the bank.
The amount of options that are created with an excess product and large amounts of wholesale is incredible. It’s one of the reasons that I was able to navigate through a big part of the industry. We would create partnerships through it. We would also start new businesses with it. It allowed us a lot more opportunity than had we not had it at all. I know some of you out there are structuring your business around retail and that’s great and all. Being able to have this extra product on hand, you don’t need to sell and you want to create something bigger. It’s like being able to have a gold coin sitting there and being like, “When I need this, I’m going to be able to use this. I have the right time to use it.” Having that there is not a bad thing. It makes you extremely nimble if you want to make deals happen. I’ve seen people buy into companies with a large amount of wholesale.
It does a ton for you. I can go through so many other things with you guys now. This is a quick one for you. What I suggest is keeping an eye on your industry and what the wholesale market looks like, always keeping your finger on it. You’ll be able to tell because a lot of you who are out there are buying and trading with other stores, which that’s a great way to do it, too. You got to be careful on taxes in your local environment on how that works. Always check your regulations. I don’t want you guys to follow me blindly. Again, most of you know, they’re different in every state, so we want to be careful about that. Using it as your extra chips under the table that you’re not showing anybody and you’re able to come out and say, “I’ve got some product here that I think we could put something together with.” You’ll be extremely surprised what people start talking about when they’re like, “We have this all at our fingertips. Now, what can we do with it?”
It’s amazing the way the human mind works and the way you start solving problems when you have a few things in your arsenal to be able to use and trade with. I traded with it a lot back when we were first starting. Those created relationships. It expanded my business and network and grew it into a multimillion–dollar business. That’s what I’m trying to give you guys is that opportunity to be a multimillionaire and get into those areas where you’re going to win and hit some huge successes. Guys, thank you so much for joining me again. Please hit the subscribe button. Check out all my episodes at PlantProblem.com. I’ll be here next episode. Thank you so much for joining me.