I’m a couple weeks away from Certificate of Occupancy on a Type 7 Manufacturing Facility in Sacramento.
I have heard horror stories from peers operating in the licensed space. They say even though they sell out of product faster than they can make it and their businesses have no debt it’s still impossible to turn a profit with the amount of taxes levied by the state and local governments.
Is this everyone’s experience in the CA recreational market?
my impression is they are stealing the money. There is a line to get into a store and Pot stores sell it for 80 for a half gram of oil here and they claim to make no profit? The extra taxes are on the consumer in my state but it would require millions to bribe politicians to get up and running.
You can but you just have to be smart, we’re located in sac would love to chat when you have the chance
Yes. It’s not for the feint of heart. You can make money… it’s just not as easy. If you’re creative in how you do it it’s possible.
If you can’t make a good profit your doing it wrong.
… After payroll and paying back net 30s and debts many are barely surviving. Some are too big to fail and will be the ones gobbled up by bigger companies.
Much like Colorado’s Hemp Ecogen. Barely able to survive, it has now become Ecogen Biosciences and had an infusion and new ownership.
Money management for Consumables and supply chain and staff and then finally product to run is definitely a skilled juggle. A lot of hoops to jump through and the most expensive state to live in add to that difficulty.
well you mentioned the state again- taxes are going way up so keep that in mind with any business plan.
Because that’s how we end the ever growing black market 
not my experience. We turn a nice profit. IMHO manufacturers are the best set to profit. I don’t know what your local tax rate is but for me it’s only 1%. We also don’t have to collect or charge cultivation tax (all of that gets passed through to the distro) and there’s no excise tax (retail/consumer) . Run a god business, make a good product and you can do well.
edit: Also should note the tax losses from 280E are less for a manufacturer as even with it you are still able to deduct cogs. Which is a much bigger line item for manufacturers than other verticals