Sales to dispensaries - this deal sound legit?

[RandyL]

I went into Los Angeles today and visited a new dispensary, the first one I've seen that had clone plants readily available.

But I left with a few questions in my mind.

First, I was talking to one of the employees about the clones, I think he was the manager. I asked him, if I grew some plants and had excess buds left over, could I sell them to this place? He said yes, if they were good, but (here's the part that sounds weird to me), he said that if I brought in a pound, I'd get 1/4 of the money then, and the rest a week later. Is this a common way of doing it? What if I came back the week later and they had some excuse for not paying me? That's what I'm concerned about.

Second, whenever I've looked for pictures of clone plants here and on the internet, the plants seem to have a skinny stem all the way down to the base. But the clone plants in this shop has a skinny stem for only 2-3 inches tops, then they were branched off a thicker stem, maybe 3/16" in diameter. They seemed to have good roots growing, but it was unlike anything I'd seen before.

So I'm wondering if these 2 things look and sound right. What do you think?

[Weed420]

1/4 upfront is not good unless you have built up some sort of a business relationship with someone and have grown a little trust. The dispensaries have planty of cash to pay upfront. They're just trying to make money off of your money, which is a standard business practice these days.
The clones sound like they're fine. It all depends on where you take the clones off of the mother.

[i.play.4.keep]

I'm not trying to Jack your thread, but I had a question just like this too. How do I get my overflow/extra grown medicine in dispensaries? Do I just ask if they're interested? Or are there rules I'm missing?

[RandyL]

Making money off my money? I don't understand how that applies to this situation. If the dispensary and I agree to a price of $3,000 per pound (for example), and I get it all up front, or $750 now and $2250 next week, how does the dispensary gain anything by giving me the $2250 a week later?

I don't think I'd go for that sort of a deal. I'll keep looking for other places.

I also think, however, that when the time comes to walk in with a few sample buds, maybe they'll be more reasonable to pay up front once they can actually see what I have. This was my first time there and they don't know me at all yet.

I'd like to hear a good answer to I plays question also. So far I've been just flat out asking them if I can sell my excess buds there. Some say they don't take from outside vendors, some say they'll look at what I have and deal from there.

[Propa Gator]

Personal honor is the rule; to have and perceive.
Retail businesses buy with credit when they can get good terms, then pay the debt from proceeds. 'Cash 90' is popular. Quarter down, balance in seven is not unreasonable. Develop a personal relationship first; you don't want to try and collect this debt through the courts.

[FreakNature]

Did you catch that Randy? The dispensary get's 3/4 lb that they don't have to put their cash out for, "using your money". Then they sell it for what, $15 a gram making $5040 dollars and returning $2250 to you for a $2790 profit without any cash outlay of their own. Meanwhile they make $930 profit off of the other 1/4. Pretty good deal for you ($3000) and them ($3720) minus overhead and expenses. The only people that are at the disadvantage are the sick that just pay...pay...pay.

[RandyL]

Okay, that makes more sense now. I see how that works. They aren't really gaining anything, they just aren't putting out all the $3K up front and waiting for it to come back to them in sales and then the profit part.

As long as they paid the other $2250 on time in 7 days with no BS, I'd be ok with it, but waiting those 7 days, especially the first time, will have me all hyper for that week.

[Propa Gator]

Recommend holding on to enough for self medication

[FreakNature]

^^ good idea.

Meanwhile, if the elbow cost less than $750 to grow you can't lose financially. You may run some risk legally though...I don't know.

[Weed420]

Originally Posted by FreakNature

Did you catch that Randy? The dispensary get's 3/4 lb that they don't have to put their cash out for, "using your money". Then they sell it for what, $15 a gram making $5040 dollars and returning $2250 to you for a $2790 profit without any cash outlay of their own. Meanwhile they make $930 profit off of the other 1/4. Pretty good deal for you ($3000) and them ($3720) minus overhead and expenses. The only people that are at the disadvantage are the sick that just pay...pay...pay.

Exactly. Doesn't neccesarily mean you shouldn't do it but sell a small amount first to see how they do business and if they're reliable. There are risks involved, just be aware of them.

[munki]

If they want to pay 1/4 up front, then supply the 4 ounces they paid for with the guarantee that the other 3/4 are available to them at the same price for the next 7 days.