Marijuana Business Factbook 2019

232 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. CHART 5.06: Portion Of Profitable Retailers In 2018 By Business Type & Market Served Note: "Losing A Lot Of Money" (expenses and taxes exceed revenue by more than 25%); "Losing Some Money" (expenses and taxes exceed revenue by up to 25%); "Moderately Profitable" (up to 25% of revenue left after expenses and taxes are paid); "Very Profitable" (more than 25% of all revenue left after expenses and taxes are paid). Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Portion Of Profitable Retailers In 2018 By Business Type & Market Served Stand-Alone Retailers Vertically Integrated Retailers Medical Market Recreational Market Medical Market Recreational Market 15% 25% 23% 50% 38% 15% 25% 8% 13% 33% 25% 13% 33% 20% 25% 20% 8% 8% Percentage Of Businesses Very Profitable Moderately Profitable Break-Even Losing Some Money Losing A Lot Of Money Across all markets and business types, most retailers reported making a profit or breaking even in 2018. Overall, retailers in recreational markets fare better than those in medical markets, with a greater proportion of retailers in MMJ markets reporting losses than those in adult-use markets. The same holds true for vertically integrated retailers: A higher proportion in medical markets reported losing at least some money than vertically integrated retailers in recreational markets. Several medical marijuana states ― including Iowa, Minnesota and New York ― require vertical integration and have high barriers to entry, including significant licensing fees, but sales have not yet met expectations. In the case of Iowa, regulators recognize this disconnect and have made plans to revisit their fee structure during the 2019 legislative session.