Profit Reality of Extracts?

Hi everyone,

My question is regarding realistic starting materials for extraction.

Let’s assume you can get $2,000 a kilo for premium quality flower. 100 kilos would be $200,000 in revenue.

If one were to make distillate at a 10% yield by weight (is this even reasonable?) this means 10 kilos of extract. Now selling it at $10,000 a kilo (is this even reasonable?) that’s $100,000 in revenue.

So this being the case, if my numbers are reasonable, it wouldn’t make sense to you flower as the source material for extract.

Does anyone make oil with nug and turn a profit? Do most people just use trim?

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In Oregon we get recreational lbs of flower I would smoke, for $100 or less. And we have built a nice little brand, so we actually have someone to sell to.

In Washington we are paying no more than $500 for the equivalent lbs.

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In California, we can get smoke-able nugs for $50/lb. Changes the profit margin quite a bit.

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So there’s pretty much no telling how much wholesale prices will be in Oklahoma. Shoot

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Are you talking about making oil, and then making distillate from said oil? If so, that would be an huge waste of valuable starting material. Distillate itself is typically made from “crude oil” made from trim to reduce the overall cost of processing and increase revenue.

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Keep in mind that in the previously mentioned states as well as here in Colorado we have saturated markets now that are fairly mature. Things weren’t always that way but here in Colorado we have people turning in licenses because the excise taxes for growers are just too high and there is a tremendous amount of inventory just sitting around waiting to be sold. I’m currently working with one store/grow that has been sitting on outdoor grow material since last fall. We’re chipping away through hundreds of pounds and converting it to distillate to be sold on their shelves. It’s all about volume here now, the big margin days are over.

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I’m part of an extract company growing indoor flower specifically for whole plant fresh frozen extracts. Currently in California it is more profitable to just sell the flower on the regulated recreational market than it is to extract, unless that extract is a high yielder.

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It’s usually been like that way in any market regarding nug runs in my experience, but it’s more fun to make/taste/smell/see extracts than nug

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I’m more on the black market, but it’s the same way!

I still haven’t figured out how to tell if I’m on top…if I keep the A-mazing strains, most time they don’t produce as much as, the really good ones lol! I’m sure once my grow game perfected a lot can change, tons did just changing to Nectar for the God’s nutrients from Oregon… Taking a whole different approach there, but that’s for another topic!

Hard for my head to figure the math out,I do both though, make my indoor… Trim the tops and tight stuff, everything else goes!

I do some whole plant runs for myself, but I had come to the realization that with all that extract I just want to smoke it all!!! Lol nah but it’s way easier to move the flower with no extra foot work!

Ppl have set price for live resin around here… Just pisses me off they want to pay same price for live resin that’s been soaked to long, then doesn’t take that clear Crystals sugar, had more budder look but wet… Same thing just longer soak for me to make,I do no soak with clear Crystals…

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My price is my price. If you dont want it ill smoke it myself lol

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This is very true, processing high quality flowers you can net the same selling them. Especially after the cost of extraction. People want other options besides smoking herb, that’s about the only reason the market is holding up. Either the price of bud has to come down, or the price of extracts needs to come up. Some things gotta give, unfortunately I can’t tell which. :man_shrugging:

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Bingo

Damn that seems cheap! Is that your price for smalls or larfy bud? Fresh? Good quality? Just trying to get an idea of if I’m paying too much for my lbs of nug. I’m paying an average of 250 a unit for very high quality Small’s. Does that seem pricey?

Seems decent but it depends on what you’re doing with it. The buds I get are usually pretty fresh but generally from a grow that went wrong somewhere. Still look frosty, are sticky, and have a good smell but they aren’t anything above mids.

I wouldn’t pay a dollar more than $50 for anything I’m converting into distillate.

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Why waste terpy material on distillate

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Market pressure or maybe regulatory restrictions on economical equipment choices due to ignorance around solvent use?

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I always thought of oil processing as taking the scraps and purifying them, as needed, to yeild new products…similar to hot dogs or fruit snacks in the food industry.

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This is so true.

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Good point on regulatory hindering solvent use. Its a shame

Really depends on your market. It is a lot easier for me to sell distillate right now than it is to sell BHO. It’s a worthy sacrifice.

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