5 Cannabis Distribution Methods (Without the Government) – Cannabis | weed | marijuana
With shortages in British Columbia and Ontario, Canadian cannabis connoisseurs are beginning to question the need for government-controlled wholesale cannabis distribution.
Distributing cannabis without the government shouldn’t be a controversial issue. We have set a good example for the food industry. An actual market that we can use as a comparison.
And it’s not an either/or situation. All five of these examples can (and do) work in parallel with each other.
FIVE – Redistributors
Redistributors do not sell directly to your local grocery store. You are a step in between. The “Middleman”. They usually get a lot of hate from the economically illiterate and there is no reason for it.
The redistributor buys food directly from the source. Do you know how much that is? We’re talking about massive bulks – big purchases with lots of volume.
Smaller retailers don’t have the capacity to handle all of these foods. You have to rely on these bigger guys to break it up. Smaller retailers focus on delivering to your grocery store.
Is cannabis big enough in Canada to have similar supply chain requirements? People will find out through the consensual actions of the free market.
FOUR – Specialty Distribution
Specialty distribution is what it sounds like. These traders deal in different categories of food. Very specialized. Very niche.
Have you ever wondered where your favorite local Lebanese Hushwee comes from? You obtain them from specialist dealers.
In the food sector, these retailers work together with restaurants and caterers. Neither party wants cross-contamination. It’s a mutual interest. And it manifests itself through profit.
If you don’t make money, consumers won’t be happy. you are doing something wrong
Bureaucratic servants cannot see this essential signal. We can’t stop giving money to the government. This is the only way to make this signal visible. You have to put private capital at risk.
THREE – Broad Cannabis Distribution
Broadline dealers are the folks your local grocery store uses. They move significant volumes across thousands of product categories. This means they can offer discounts for bulk buyers.
What about the smaller boys? They form a group purchasing organization that allows them to take advantage of discounts by becoming bulk buyers.
This happens every day at the grocery store. There’s no reason the cannabis industry can’t emulate it.
And it doesn’t need a planning or government committee.
Just let the market do it.
Let cannabis users, entrepreneurs and workers find the most valuable ways to serve one another.
TWO – Cash and Carry Merchant
Cash and carry merchants do not move products. They maintain the camps for the benefit of the operators. In the food industry, this warehouse is where restaurants, caterers, and other operators buy their wholesale products.
In the cannabis industry? Who knows what distribution models we’ll end up with. Assuming the government gets out of the way.
Cannabis is not as big as food. Perhaps all that is required is a multitude of private traders scattered throughout the provinces. Placement by market demand, not by government decree.
These private traders will have the capacity and purchasing power to buy directly from farmers. They will deliver to the retail stores and keep this cash and carry model for other operators.
Of course, a cash-and-carry distributor would be handy now. As distribution centers in BC and Ontario sell short retailers, they could tap into these industry-specific stocks in the near term.
ONE – You and the farmer
The number one best cannabis distribution model is between you and your grower.
Does more need to be said on the subject?
No sane person would want Health Canada to be in charge of the country’s numerous farmers’ markets. Yet the federal government controls cannabis in this way.
Canadian authorities have a lesson to learn. If you can’t beat them, join them.
You can’t stop Canadians from visiting their local farmers.
And visiting your local cannabis retailer is a time-honored tradition. And “dealer” has such a negative connotation. What about traders in the cannabis legacy market?
A lesson in cannabis distribution
Ask yourself – how does Canada’s cannabis industry look to you? What should cannabis distribution look like?
Rational degrees of freedom and freedom for adults? Or the backward-looking monopoly, the economic relic of the 20th century?
Some BC and Ontario cannabis stores look like empty grocery stores from the former Soviet Union. A place that has relied too much on the political machinery to allocate resources.
Is this cannabis in Canada?
Or does Canada’s cannabis industry look more like our food industry? Private, competitive, with multiple supply chain processes?
What makes more sense to you? Treat cannabis like nuclear waste? Strictly controlled and monitored by a political bureaucracy?
Or do we treat cannabis like farming? That’s it. A flower. A weed. No harm to anyone.
Cannabis is a staple. of nutrition and energy. agriculture and industry. medicine and recreation.
Hemp is life. And sales is his network.
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