Marijuana Business Magazine October 2019

“They’re going to drive price,” he said. “They’re going to drive terms.” Matelich recommends not allowing any one customer to account for more than 5% of business, which works out to at least 20 client relationships. “It allows you to drive price, because there’s all this diverse demand through your products,” Matelich added. Haupt’s advice lines up with all of that. He likes to work with smaller, independently owned businesses rather than the Walmarts and Costcos of the marijuana industry. “You’ll notice that the big guys will beat you up on price because they’re going to grab so much of it,” he said. If Haupt has 100 pounds, he’d rather sell 10 pounds at a time to 10 stores because he’ll get more for it. “It helps with the bargaining power,” he added. Another piece of advice for dealing with buyers: Take care of your custom- ers. In July, when the supply is low and demand is up, retailers will be looking around for product. If you don’t gouge them, they’re more likely to give you a fair price in November, when the market is flooded with product. Turn to Futures Contracts Looking ahead to a season of oversupply—typically the late fall in markets with outdoor-grown cannabis— Peters recommends setting up a futures contract with a manufacturer. A smart play is to get a buyer to prepurchase your product. The buyer might get the product for a slight discount because he or she is paying up front. But Peters recommends not going out beyond 90-120 days. “Don’t make a futures contract for a year,” he said. “By the end of that year, somebody’s price is wrong.” But make sure you’re contracting with the right buyer. “One warning,” Peters said. “If you don’t trust the people you get into a futures contract with, just don’t do it.” Mantis Growth Investments CEO Jesse Peters Courtesy Photo f ooda r om . com • i n f o@f ooda r om. com • T 801 975 - 2604 M O N T R É A L • S A N D I E G O • S A L T L A K E C I T Y • B R E M E N • M I L A N O