Are You Riding the Highs …and Lows of Wholesale Cannabis?

2017-11-06T12:49:20+00:00November 6th, 2017|

Mud season… Ugh. The seasonal slowness in our mountain towns can truly ruffle some feathers. Many wholesale cannabis suppliers are sitting on a surplus, which makes the price drop, and causes a bit of a stir in the market place.

​Hang on tight – this is a cycle that always untangles itself!

How does one pull through in a slow wholesale setting? We’ve learned by now, that cannabis has its own cycles much like any other commodity-based product. Downturns lead to innovations, upturns lead to dry supply chains, and every now and again we strike a healthy balance.

Here are some good ideas for this most recent downturn in the wholesale cannabis space. It depends on your business model and needs, but there are plenty of ways to thrive:

1. Sit on the product if cash flow allows
2. Keep that marijuana in-house and sell it through your dispensary
3. Call your wholesaler and see what else the product can be sold as, or for
4. Sell it at a discount to keep cash flowing

The most significant part of deciding what to do with a surplus is to analyze historical data. Did the wholesale cannabis space look like this last year? Most likely, yes. Now, check what it did 60 days after that. Feel better? You should! Historically, over a 12-month period, the market always seems to level out. The wholesale cannabis industry is a crazy roller coaster ride, but remember that your seat belt is strapped.

So let’s have some fun!