Cannabis is a smoking hot topic right now…

With the possibility of a new market in Canada, and a growing market in the United States, there has never been a better time for investors and entrepreneurs to become familiar with the cannabis industry. From 2012 to now, marijuana revenues have increased by 64% and continue to show growth on a year-to-year basis.[i]

Looking at states like Oregon and Colorado, it is apparent that cannabis has huge potential as a consumer product. In a recent publication by the Business Insider, it was reported that the number of dispensaries in Oregon outnumbered the number of both Starbucks and McDonald’s outlets[ii]; with this one statistic, the report made it glaringly obvious that cannabis is a burgeoning commodity with a great potential for profit. So what do new entrepreneurs and companies need to consider when sourcing for, and launching their businesses?

For cannabis businesses in the United States, it is required that dispensaries grow at least 70% of their products and may only outsource the remaining 30% of on-hand inventory,[iii] meaning… the marijuana market is currently flooded with small, boutique suppliers that typically grow onsite. However, many of these small to mid-sized producers may have trouble competing with commercial grow-ops, which already have experience producing large quantities for the medical industry.

And when it comes to marijuana packaging, Plexpack has observed several pain points unique to the industry, such as: 

  • Marijuana consumers tend to purchase goods in small quantities that are usually consumed in 1-2 sittings. While these bags are small, they are expensive to purchase and costs add up quickly.
  • Economy-priced bag sealers break down frequently, requiring repairs and new machine parts, which can, additionally, be difficult to source.
  • Poor packaging quality can make cannabis unfit for legal sales.
  • When small machines cannot keep up with minimum production speeds, requiring the investment in a second machine or machine replacement.
  • In the states where cannabis has been legalized, such as California, labour can be very expensive.

    So how can small to mid-sized companies maximize their Net Revenue?

    The manufacturing process must be as cost-effective as possible, ensuring product quality and integrity in order to get a better ROI and more profit overall.

    How can we help? Plexpack looks forward to growing new businesses’ profit and helping them meet their margins.

    At Plexpack, you can expect honest quotes with unbeatable ROI. Some of our customers have had their machines last up to 20 years without ever needing repairs. We also specialize in bag sealing machines that are designed with product freshness and quality in mind.

    We’ll be honest; we won’t be selling you a machine for $200. Because that wouldn’t be in the best interest of your business.

    Many companies will offer you cheap machines… but that’s the problem: They are cheap. We’ve heard it countless times: “I invested in a bargain machine and the thing only lasted 1 to 2 years before we had to buy another, and another, and another. It was a waste.” Plexpack offers you quality that you can depend on.

    With over 30 years of packaging experience, we can offer you dependable solutions with a wide range of products like…

    • Vacuum-gas flushing machines;

      • excellent for keeping products fresh and extending shelf life
      • uses a nitrogen flushing system to halt product aging

    • Table-top bag sealing machines;

      • excellent for small-businesses, affordable and perfect for sealing small bags

    • Shrink wrappers and bulls-eye bundlers;

      • excellent for bundling large quantities of products, whether it be weed tins, vaporizers, bottles, machine parts, bongs or boxes of brownies

    All of our machines are customizable, made-to-order and come with PLC HMI systems to optimize your production process and reduce labor costs.

    See the What Our Customers Had To Say…

    We have received numerous testimonials over the years praising our machines for their superior quality, modularity, ease of use and durability. To read more about our customers’ satisfaction, please navigate to our testimonials page.

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    [i] Marijuana Business Factbook, 2016

    [ii] http://www.businessinsider.com/there-are-more-marijuana-shops-in-oregon-than-starbucks-and-mcdonalds-2015-6

    [iii] https://www.colorado.gov/pacific/enforcement/business-license-applicant-criteria-medical-marijuana