In today’s cannabis industry, extraction equipment is moving into the OFF position. Is our industry weakening? Is the demand for infused products sinking? No. The exact opposite is occurring.In previous years, companies have positioned themselves as “general athletes”. Running lean and using capital to gain market share. As cultivation and prosperity sweep the cannabis industry, more companies are turning into “specialty athletes”, by sourcing their needs from specialists.
Let’s talk cheese. Third party sourcing is essential for most businesses in order to continue long-term growth. Infused product manufacturers in the cannabis space must make critical choices when their current machines are operating at capacity.
Is it better to utilize cash reserves to amplify the quantity or volume of machines, or is it more cost effective to turn them off, sell them, and partner with a supply chain for oil? Usually, the latter! Capital reserves are best utilized to increase sales, brand recognition, and/or out-of-state expansion.
Enter the Specialty Athlete: forty liter machines, high output distillate equipment, and with cash reserves for trim acquisitions. Best of all, they are ready to get competitive pricing from the current market. The advantage of these operations is extensive. They become a non-competitive resource that helps reduce costs and people management. It’s a win-win.
If you’re a gummie company, why would you be an extraction artist too? Does manufacturing the finest THC chocolate in the country, need to incorporate extraction as one of its core competencies?
It’s time to break away from the constraints of vertical integration. Rely on the marketplace to supply your raw goods, so you can stay concentrated on what makes your operation successful!
Are you considering shutting off your extraction equipment?