The cannabis companies that get this one thing right will make you the most money…

When you go to your local dispensary, you’ll find dozens of different cannabis strains ranging anywhere from $15 to $65 per eighth, give or take a few dollars based on the state you’re shopping in.

Why so many different price points for a seemingly similar product? Because all cannabis is not created equal.

And the simple fact is that you’ll make the most money from the companies that understand this.

Take Gage Growth Corp. (OTC: GAEGF), which is known as Michigan‘s premier craft cannabis grower. The company’s reputation for high-quality flower has secured it partnerships with celebrity brands like Cookies and Khalifa Kush, and sales are surging. Gage’s Q1 2021 revenue came in at $17.6 million, a 219% increase from the previous year.

Then there’s Hexo Corp. (NYSE: HEXO), a Canadian licensed producer (LP) that took quality for granted and paid a hefty price. This company notoriously reported a C$20.7 million revenue loss in the quarter ending April 30, 2021, blaming it in part on competition from craft growers and a decline in its own product quality.

What Gage understands that Hexo has struggled with is that today’s consumers have high standards for their weed.

As a business owner, NICI Advisory Board Member Charlie Delvalle knows first-hand just how much flower quality can vary.

While running Hashstoria, on any given week, he sees at least 30 different pounds from a variety of vendors and farms. And one of the most important lessons he’s learned is how to sort through the duds to find the flower that customers crave – and price it so the inventory flies off the shelves.

Because any cannabis dispensary can sell flower. But if they’re not hitting the marks that Charlie’s going to show you today, they’re not maximizing their profits – or yours…

The Four Keys to Valuing Cannabis Flower

By Charlie Delvalle
Co-Founder of Hashstoria

When it comes to cannabis flower, there are four criteria I look for in top-shelf weed:

  1. What’s the nose like? Is there a strong smell when I open the bag? Is it sweet, gassy, rotten, earthy? Some strains don’t give off much odor at all. Others smell like tangerines and grapes. This is one of the most important factors for me because customers love pungent strains. If the strain doesn’t have a nose, we won’t buy it – even if it’s perfect in every other way.
  1. What strain is it? Is this an exotic new cross? That’s not always a good thing, depending on your market. We find strains that are already popular do the best on our shelves. But this can vary to some extent from market to market. For example, in our Astoria store (which is on the north coast of Oregon) we struggle to sell any “cookie” strains on our top two shelves. In our Gladstone location (a few hours away in the Portland metro area), “cookie” strains do great no matter what shelf they’re on.
  1. How does it look? Is the flower bright green, purple, or brown? Are there trichomes or red hairs throughout the bud? What’s the structure look like? Is it airy or dense? Are there seeds? How is the trim job? Is the growing style apparent? Strains with multiple colors (purple and green with some red hairs throughout) tend to get the most “wow” factor.
  1. What are the test results? I’m looking for potency test results, along with any terpene tests that were taken. In our stores, it’s hard to sell a premium strain that tests low in THC. Likewise, I don’t like to see super-high testers on our lower shelves.

When the flower hits the mark on all these things, I’ll gladly pay a top-shelf price.

If it’s lacking a little on test results, or perhaps it’s a strain we’ve never sold, I’ll pay a little less. Why? It’s a gamble. If I lose, I have to move the strain down shelf and make lower margins.

If it’s lacking in other ways, that’s OK too! We have five flower tiers, each with different price requirements. So, at the right price, most flower will sell.

To see these criteria in action, I recorded a hands-on guide to pricing cannabis flower, which you can check out below:

From this video, I hope you can see why all cannabis isn’t created equal, which extends to the companies selling it. That’s why we’re here to help you sort the winners from the wannabes – the Gages from the Hexos.

And the NICI Membership model portfolio already has over a dozen winning stock picks that could start making you money today.

To learn how to access those recommendations, all you have to do is click here.

Until next time,

Charles Delvalle
Co-Founder, Hashstoria


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