Marijuana Business Factbook 2019

221 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM CHART 4.15: Most Expensive Monthly Operating Costs For Cannabis Product Manufacturers: Breakdown By Business Type Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Most Expensive Monthly Operatings Costs For Cannabis Product Manufacturers: Breakdown By Business Type Cannabis Producers/Processors Staffing/Wages Cost of Goods Sold (Inventory) Rent/Mortgage Other Loan/Debt Servicing Utilities Cannabis Processors Staffing/Wages Cost of Goods Sold (Inventory) Rent/Mortgage Other 55% 18% 15% 8% 3% 3% 34% 48% 14% 3% Percent Of Businesses Staffing and wages and cost of goods sold were identified as the most expensive operating costs by both producers/processors and processors. For producers/processors, extraction is a precise and potentially dangerous job that requires an employee with a certain skill set and aptitude. On top of that, these businesses must support a cultivation staff. Depending on the job market, master extractors and master cultivators can earn six-figure salaries in some regions. Processors without production capabilities must budget for the ongoing expense of inventory, or cost of goods sold. These businesses purchase raw cannabis or cannabis oil from third parties for use in their products. A small portion of producers/processors identified loan and debt servicing and utilities as their most expensive startup costs. Producers/processors may require larger loans to start their business than processors only, given the high costs associated with developing both a manufacturing facility and a grow operation. Most of these businesses will be producing year-round and, as such, are likely using indoor growing techniques known for their high utility requirements.