For years, flower was king. As long as there was an established pipeline for flower distribution, it was almost impossible for investors to lose money in the early stages of this industry’s growth. While this might remain true in some markets, flower profits are becoming leaner. There has been a significant decrease in flower price in the most mature markets due to the expansion of outdoor growing techniques that produce high-quality flower in large quantities, as well as market saturation driving prices down.
Let’s create a fiscal example as a starting point. First, let’s assume, for this example, that the price of high-quality outdoor flower is wholesaling at $700 per pound. The second assumption is that two potential outcomes of yield exist from the extraction and refinement process (i.e., 10 percent and 15 percent of dried flower weight). The final assumption is the potential wholesale prices for high-quality refined oils, which we will estimate at two potential levels of $20 and $25 per gram.
