Marijuana Business Factbook 2019

230 Marijuana Business Factbook 2019 Chapter 5 | Financial & Operational Data: Retailers © 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. RETAILER PERFORMANCE & OUTLOOK CHART 5.05: Retailer Overview: Typical Revenue, Expenses & Startup Cost By Business Type & Market Served Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Retailer Overview: Typical Revenue, Expenses & Startup Costs By Business Type & Market Served Vertically Integrated Retailers Medical Recreational Stand-Alone Retailers Medical Recreational $8,030,833 $6,600,000 $2,900,000 $2,518,750 $1,903,200 $4,044,375 $822,525 $866,000 $96,000 $312,500 $2,391,429 $3,325,000 Median Annual Revenue Annual Operating Costs Startup Costs (Business Launched In Past Three Years) $8,000,000 $4,000,000 $1,900,000 $2,500,000 $822,000 $2,390,000 $312,000 In both medical and recreational markets, startup costs for vertically integrated retailers are much higher than for stand-alone retailers. In addition to the investment costs of the retail storefront, vertically integrated operators must invest in cultivation space, plants and equipment, including lighting and HVAC systems for indoor and greenhouse grows. Some vertically integrated businesses also manufacture infused products such as edibles or vape cartridges, which require further investment in real estate, equipment and personnel. While the startup costs are higher, the revenue potential for vertically integrated companies is higher as well. With control over their supply chain, these retailers do not have to pay fees or markup costs to wholesale cultivators or distributors and are able to retain all the value of what they produce and sell.