Click on the headings to see more detailed information about each step. In this example we based the information on 3.5 grams of flower packaged in a Nitro Tin.
During the initial phase we mutually explore the opportunity of packaging and marketing your Craft Cannabis. We want to know what strain(s) you have available, what your projected volume will be, how much you would like to sell your cannabis for etc etc. You set the price. We will provide you market data and advice but ultimately you decide what your product’s MSRP will be. You will want to know all about the process, the payment logistics and terms and how the supply chain works. If we agree that we would like to work together, we would submit your product notification to Health Canada (this comes with a 60 day waiting period mandated by Health Canada). Once your product is registered with HC we will then proceed with registration of your SKU(s) to product catalogues and contacting the provincial distributors to find a market for your products. At this time we will present a contract that allows us first opportunity to package, market, and sell your product. We will build a sales pipeline and invest time and effort and therefore we need to be sure that we will have the opportunity to purchase from you. That being said, you have the right to accept a better offer, so it keeps us incentivised to do our best at marketing and distributing your Craft Cannabis.
As your upcoming harvest approaches, we look for 2 weeks lead time/notice before harvest so that we can estimate when we will have your Craft Cannabis available for sale. Taking into account, trimming, drying, bulk packaging, transport (to our facility) and then processing, we can then offer a timeline to our distribution network.
With an estimated timeline and volume, we can then communicate with our network to generate interest and purchase orders. When a purchase order is submitted to us by a wholesaler, we will then contact you and begin the process of getting your Craft Cannabis packaged for sale.
We package using Nitro Tin a Health Canada compliant packaging with certified Child Resistant lids.
We chose Nitro Tins for the following reasons:
a) Nitrogen injection ensures that the craft cannabis we package reaches the end consumer in the same condition it was packaged. This is an important consideration as the legal system does not move product at the same speed the black market does!
b) Almost no oxygen is present inside a NitroTin, therefore we don’t fear oxidation. This allows for cannabis that is properly dried, but not it does not need to be “overdried” to last. Other packaging methods require very dry product so that no mold growth can occur during the extended shelf life requirements of legal cannabis.
c) By using a hard shell container, NitroTin does not put your Craft Cannabis at risk of being crushed during shipping. In addition, no outer packaging is required, meaning that materials are kept to a minimum while being recyclable.
The most important part in the equation. How do you get paid? When do you get paid? How much do you get paid?
Having determined an MSRP during the lead up phase, we will have a good idea of the gross invoice receivable for your Craft Cannabis. We will have also discussed expenses during the process that will be deducted from that amount. These expenses include:
a) Excise tax – About $1 per gram
b) Processing Fee (that’s us) – $1 per gram
c) Packaging materials, labor, labelling – About $1 per gram
d) Other (shipping, COA, etc)
Also, when we receive a purchase order, we will know the payment terms of the provincial wholesaler purchasing your product. That way, you know when you get paid. Typically, expect a 30 day net payable from wholesalers.
While we wait for payment, you will receive a transaction summary within 7 business days of shipping your Craft Cannabis. This will have the gross invoice amount and will outline all of the actual expenses incurred during the packaging.
When the payment is made by the wholesaler, you will be paid the net amount (receipts less expenses) as indicated on your transaction summary.