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Ohio Dispensary

I was hoping someone with knowledge of Dispensaries in other states could help me with a couple of questions I had. I've been combing through the Ohio HB523 as I prepare to submit my application for licenscing to open a dispensary, but some things aren't that clear. I'm assuming that, although different, it will have many similarities to other states.
The main question I have is: will it be profitable? I have to pay an 8,000 application fee, then an 80,000 license fee every two years. I started trying to find information online in comparison to other states, and that seemed high. Is it?
The good news is that the state will only be issuing 40-60 licenses in the first year, meaning if I were lucky enough to be selected, I would have many more customers than what would be typical for a dispensary. An article from the Columbus Dispatch suggested that there would be 4,700 patients per Dispensary in at least the first year.
Which brings me to to more questions. How much marijuana can I run through my store? Is there a limit, or is it just based upon how many patients you have?
In Ohio it looks like it will go from cultivator - processor - dispensary. So, in plain english, how much does marijuana cost in this legal traffic? When I went to Colorado, I found that dispensary prices were more or less the same as on the black market. So how much does a cultivator charge? Then how much to a processor, and so forth? How much can I charge and make off of an ounce or a pound?
I read that the IRS Code 280E can tax you on not just your net profits, but your entire expenses. If thats true, that alone could take away almost everything you made in a year.
And finally, I saw that there will be employee license fees, and they will range from $50-500. Any information on how much they are in other states would be appreciated.
If you think this post should go in another forum, I'd be happy to move it.
Thanks for your time

Ernest
 

Drewsif

Member
If there's only 50 permits, you get endless grow rights. Is there mafia in Ohio yet? Cuz that's whos getting em everywhere else.

It's illegal to grow once a dispensary opens, right. Sure you wanna be that guy? 2 differ worlds of Cannabis in other states. Caretakers with 12 plant limits and dispensaries who won the lotto 4 times do not get along.
 

dreaded

Active member
I don't have experience from another state, but from my research (in cultivating, in ohio), like paper thorn said....millionaire easily.
I know about the high fees, but you'll get yours.
 

GanjaGrin

Member
If you had 36 lights you could get 45 to 60 pounds and possibly more. Lets just shoot low and say 45 pounds every 3 months thats 135 pounds a year at maybe $1500 a pound. Thats $202,500 a year. And thats the low end. Say you upgrade and double that amount of lights after the first year......Big money in no time. It will be a lot of work to get it up and running smoothly but after that you got it made! ��
 

FunkBomb

Power Armor rules
Veteran
Hopefully Ohio doesn't screw it up as bad as NY did. The only way to describe the "medical marijuana" system in NY state is crony capitalism.
I've seen video clips from news specials checking out where the plants are grown. The plants look awful - long scraggly shit plants and the buds are almost all larf.

-Funk
 

Easy7

Active member
Veteran
Ohio is shady as well. An excuse for a medical program. No home growing and limited growers/stores. Like usual, it depends who knows who.
 

dreaded

Active member
:laughing: ohio isn't shady, THE PEOPLE VOTED NO to home grows & feared a monopoly.
All they got in return was the monopoly that they feard. (With the high fees you need some type of backing , the average dread anyway)
 

Easy7

Active member
Veteran
You are incorrect dreaded. The voting public did not pass nor write the current Ohio medical law. It was 100% government law with zero measures from the public. They wrote the law so a voters law would not be written or passed. This so called medical bill is totally about govt control and undercutting public will. They did not want home growing or a rec law to go thru under voters initiative.
 

dreaded

Active member
I don't think I am incorrect, the key word you said was current. I was talking about the first bill that didn't pass.
 

mean mr.mustard

I Pass Satellites
Veteran
Some voted against a shit bill with no real freedom to grow their own.

I know i didn't vote no because I hate growing my own.

I don't want people to stay sick or uncomfortable or in jail.

I don't want people to profit ridiculously without giving us real freedoms and/or our POWs back in return.
 
I really do appreciate all the attention this thread has gotten. I must admit, I didn't know I would get any response at all with the amount of questions I asked.
The first Ohio medical bill was voted on in fall of 2015. Nick Lache from the boyband 98 degrees was one of the spokespeople for the bill. I'm not joking.
It said that 6 companies would have a legal monopoly for cultivation of medical marijuana in the state of Ohio. It was turned down overwhelmingly.
A couple months later, our Governor signed a medical marijuana bill that didn't need a vote and turned to the state senate. It's been in deliberation ever since, but it has to be enacted by September 2018.
Whether fair or not, whether for the people or not, my situation is what the state senate has decided so far:
5,000 application fee
80,000 biennial (every two years) license fee
50-500 per employee certification fee
The IRS code that applies to all "federally illegal" medicinal and recreational shops
Average startup costs, operational costs, etc.

However...
The potential to be one of the only 60 licensed dispensaries in the state of Ohio, of which is said to have an estimated 1,470 customers per dispensary.

I read that Colorado dispensaries aim for 32% profit of their product sold after the price from the cultivator/processor.

I just wanna know...DOES THE PROS OUTWEIGH THE CONS??? I have to prove I have 250,000 in liquid assets, which I do not have, but potential investors that I have on stand by do. The bill is still under deliberation and does not articulate what the profit margins can be.

If nobody knows specifics, I would honestly pay a consulting fee to a person who owns a dispensary to get some hardcore answers.

I really truly do appreciate all feedback and responses, as I am hoping that something I love can be the path that I am to go down for the rest of my life.

Thanks guys

Ernest
 

Betterhaff

Active member
Veteran
No flower may be sold, only concentrates and edibles. This may have an effect on the pricing structure which I imagine will be somewhat controlled by the processors. And then there’s the tax structure. Haven’t looked into that but it may be taxed on all levels; production, processing, and retail. The market may determine the final retail price but that may be somewhat skewed or also controlled. For instance, in Ohio, there is a minimum retail price level that alcohol can be sold at, controlled by the state liquor board (maintains a level playing field and guarantees a tax base).

May be a good idea to look to a consultant and for sure a lawyer, there’s a lot of money involved.
 

Easy7

Active member
Veteran
Ask yourself if losing 110% of everything you have and a federal prison term is worth it?

Ohio has limited grows and shops. Making a federal sweep real damn easy, to wipe out the whole state.

I am friends with someone on facebook that did fed time in prison for a shop in the southwest.

And is a system that bars felons from working in an industry that is in fact a felony ok?
 

SamsonsRiddle

Active member
One thing you may also want to consider is the security fees you will pay. You will be moving large amounts of cash and product and it will cost a lot of money to protect those two things.

You may want to contact, like you said, people form other states who own dispensaries in order to get the most accurate cost of all the things you need.
 

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