Assignment 9a

After conducting 5 interviews regarding my interest in investing in the marijuana industry. I actually have a cousin who has worked within the industry in Colorado, and he was my most valuable interview. As opposed to two college students blindly in support of the pursuit, my cousin offered far more assistance. He explained (in summary) that although he was a farmer, he would never grow his own marijuana for profit. He noted wholesale buying from farmers and selling to stores is where the highest margins are, which I found especially helpful in defining the boundaries of my opportunity. He was also sure to mention that growing medical grade marijuana was more expensive, with more regulations and less margins than recreational.

Throughout all of my interviews, I realized the need for marijuana is different from other substances. Nobody was dependent on marijuana, and everyone smoked recreationally. When interviewing smokers of both cigarettes and marijuana, they stated that they were dependent on cigarettes, but smoked marijuana by choice. This shows me that customer’s need for marijuana is purely recreational, and not something customers will be likely to become addicted to.

In terms of why, my cousin proved to me that in order to generate the most profit, I need to focus on wholesaling nonmedical marijuana in pursuit of this opportunity. As opposed to those outside the boundary (medical users and nonsmokers), recreational smokers of marijuana are more plentiful as well as easier and more profitable customers to cater to, why is why I intend to target them.