New floodable centrifuge that will wash and spin 480-720 pounds in 8 hours for 30k fully UL certified and ready for approval by your fire marshal. If you use the same gallon to wash twice there 240-360 gallons of ethanol to recover. Need to get 60-90 gallons per hour to recover in 8 hours. But can assemble fully certified FFE for 60-70k that will do 30 gallons an hour. So on a 16 hour day your washing and recovering 480 pounds. Can upgrade the falling film to 60 or 90 gallons an hour for 30k or 60k.
So for 100,000$ you are washing and recovering 480 pounds. Need another 30k in filtration five or take depending on how quickly you want to get it done. Another 50k for winterizsing and Decarb. And your pumping 22 kilos of finished product a day If your running 10% biomass. Selling it for 1800 a kilo is 40k a day minus cost of material and labor and 10% of ethanol lost.
Siosis labs, all accross the nation take 20-60% of the shares pending on down payment abilities and distribution network. Repo and re-sell the equipment if they default.
Cut me in 0.5%
All about market share for the next 2-4 years until major players inevitably destroy small-medium size biz.
Ok i have a few questions here on the numbers. Let me start from the Top.
-so if we have 480lbs of 10% material we are left with 21.5kg of unwinterized crude. Which is going for about $1200-1400. Let just say we stop there. At the Minimum, Its ONLY $25K and you still need to account for the labor and material .
Now if we are winterizing and dewaxing this material the number is gonna drop to about 70% so now we have 15kg of dewaxed crude which is still going under the 1800 you stated. I can buy “A SINGLE KG of dewaxed crude at $1700”. But again this number comes out to $25K with increase labor and increase power consumption.
What is good hemp flower costing right now in order to get 10% return because ive extracted some very good smokable CBD FLOWER and just barely hit 10% return.
So let just take your paying ONLY $50 a LB for hemp Cbd resulting in 10% return. Well that 480lbs just cost 24K. Where is the profit. Let just say this is a hemp farmer. How much does it cost that farmer to produce a LB of hemp that results in 10% return.
How much labor is this gonna need?? we are already at over the cost with material alone.
Add on 10% loss on ethanol and we are at a serious negative. How does this work on the profitability side?
That’s where labs are made or broken. I’m paying around 20-30$ a pound for 10% material that’s yielding 13ish % with bullshit unwanted compounds and after Dewax and and all that probably down to 8ish% so
1000 pounds yielding 8% is 36 kilos winterized crude selling for 1800 a kilo which is 64k and that’s 20-30k of material…
That’s the magic baby. All about your hemp input number
and i wasnt trying to beat you up on the numbers. I just want to understand the full profitabitlity of this. As this is probably my next phase in life and im trying to look at the real cost of everything.
What type of labor is involved with all this? I really cant wait till your set up in orlando. I can make it up that way in less than 3 hours and see it for myself if willing.
Dm me we can work some stuff out for sure. Once I get rolling towards harvest time this year I’ll happily hook you up. Don’t need to upcharge you so much either. I’m not looking to get rich off y’all. I’m looking to get rich off all these speculators that are pumping corporate money into our industry. Take them for every penny they’re worth. We gotta stick together and give each other hook ups it’s the only way we can collectively try to fight back and fuck up the corporate world
If that’s the case, franchise the shit out of it. Put together a pro forma showing 6 months of cash flow (3 months setup, 3 months operations at various capacity thresholds (breakeven per month through 3 shifts at 100%)). Let the investors decide. You take a 5% royalty on value of product sold or 10% on tolling services.
I’ll even jump in on this and roll in my disposal service to address that issue for your franchisees.
True. I just don’t know if I want that work. I’d rather generate 40% profit margins for 3 years get my company value to around 20 million and sell for 50 million with the current hemp multipliers of company evaluations. And then retire. Or then do stuff that like that where I hire someone like me where I’m at now and set that up from my house in Tahiti lol
Probably could squeeze it all into like 3000 or so square feet. Probably less. I like to have lots of working space because in the grand scheme rent isn’t s large factor. But if you wanna work ass to ass with the other techs could probably get it into 1500-2000 square feet not including material storage. Or possibly ethanol storage. But I’d have to do drawings on that to rly find out that’s just rough estimates
Problem is
1st off I don’t wanna flood the market with crude. That’s my main thing I love selling crude it makes my life easy.
2nd there’s already a massive flow of companies to the market and idk I want to increase that flow excessively. Especially since probably 60% of them entering get the wrong gear and wrong techs and make a shit product or can’t make margins and fail. So my method would almost gaurentee some level of success and hurt my main business.
3rd I’m just trying to pay my bills as my own lab builds out. Going back to point number 2 I don’t want a bunch of labs pumping out my quality shit at my price cause then my company hurts. And what sets my Company apart suddenly becomes common place. It’s more so get like 3-4 labs going over the next couple months to pay my bills till my lab gets generating revenue. Not set up a fuck load of competition that doesn’t have even half the growing pains a normal start up would because of my vetting.
So ya. That’s a cool thought but until I’m out of the production game it hurts me more then helps me
Set them up in different states and diversify and increase market share. Especially since we don’t know how far off federal legalization is, and what the framework for inter-state trade is going to look like.
Uruguay produces kilos of isolate for $400.
Crude would probably cost $200-300/kg. That’s coming for all of us. Margins will work themselves down significantly like in any new market bubble.
Might have 2 years of making these margins. Might have less. Maybe more? Depends on legislation likely. Hopefully you luck out and get bought before then.
Only valuable thing in this game and for anyone who wants to buy your company will be market share and distribution network. Your Tek isn’t unique, everyone makes crude, everyone has a centrifuge. Yours is cheap though! And has the potential for quick expansion.
Your competition will spend 3-30million on a lab and you won’t be able to compete with economies of scale. I guess your other option is to become the $3-$30 million lab.
No horse in this race for me anyhow. I’ve got a different model and method. Just my 2c which isn’t worth much since I’m broke anyhow.
Yup that’s why I establish distribution network of several thousand kilos of distillate and crude per quarter even if I have to source half of it from other labs to fill the orders. That’s where a lot of the value will come from for my company
There’s people that’ll be moving tons of oil daily
Just make sure you get a piece of that pie.
We haven’t even touched economies of scale in this industry yet.
Especially when the world opens up. All of a sudden tropical countries with year round growing seasons will start kicking the shit out of our half year cycles. Oil will be so darn cheap.
I’m pretty sure you’d make 200 new best friends overnight.
I’ve got a different model and method. Just my 2c which isn’t worth much since I’m broke anyhow.