I was in LA, vegas, and parts of the east coast. Seems on the traditional market people are offering 2g disposable d9 vapes in bulk wholesale for prices that make no sense.
someone tried to tell me they work with the official cake brand on pallets. That they get 2g dispos at $8.00 each i cant even begin to understand how.
In order to have a reliable 2g hardware youre paying $2.5-2.7ea, true cat 3 high potency is costing me $0.9-$1 per gram. Sweet flavor terps from abstrax is $2.55/g and at 5% cut you that about $0.18 per gram of oil to terp. and packaging/labor/overhead is about $0.40-$0.5 ea.
imo this is the cost of making a premiem product.
I get if youre the processor direct being vertically integrated but even so. There is no reliable hardware out there for $2 on 2g disposable and unless youre using conversion oil at $0.35-$0.40. There no meat on the bone.
the work is still all the same it makes no sense that the offical cake company would backdoor traditional products even via pallets at only $8ea.
I could be wrong though. Any thoughts from the community.
Sounds like they are undercutting the market and going for a volume market share play. They still make a great margin if you know anything about commodities (50% margin would be unheard of). If you think that’s low just give it 3-5 years and you’ll see that this industry is even more commoditized by then. I think every sector of the industry will settle around 20% margin and then there will be further consolidation through vertical integration.
Even with quality inputs the big guys can do these for $5 or so.
Cheap disposables, conversions etc and it’s potentially half that but the scales are massive - millions.
Been actively buying those really cheap ones when i get the chance to test, never had one test as traditional d9 should. Always an indicator that its conversion or its d8.
Most recent brand i tested their “thca blend” and the results were a lot of things.
If u dont have ur carts packaged and sold for under $8 these days no ones gonna bite.
Most high quality carts wholesale for $11ea but thats <5% of the market share.
Actually CN gov banned all online sales of any vape devices, Made in China block all CN visitors to those vape pages, I think it somehow makes those fake sales more easier
The listings are not available through the app either. The only way to get to those vape pages is to have a fully verified made in china acct and even then you can only view those listings using a web browser. The app won’t show it at all.
shoulda known hahahaha