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How much money does a medical marijuana club make?

The following chart shows the typical income and expenses for a small marijuana club. This assumes a club of less than 1,000 square feet, with two employees besides the owner. To maintain the level of sales shown in the example, a club would have to have an average of 128 customers per day (16 customers per hour for an 8-hour day), assuming each customer purchased one-quarter ounce of marijuana. This assumes an average sale of $130 per customer.

Our research has shown that there are at least dozens of  clubs that are currently operating at this level of sales of greater. Our research has also indicated that some clubs may have sold in excess of $50,000,000 of marijuana per year from a single location.  There are currently a number of clubs operating where the owners have claimed revenues in excess of $20 million per year.

As with any of these charts, the numbers presented are examples only to give you an idea of the income potential from marijuana clubs. Every situation will be different, and you will need to make your own judgments about potential sales, based on your own individual situation.

Monthly Expenses

Amount

Store Rent

2,000

Advertising

1,000

Utilities

1,000

Salaries (assumes two employees at $5,000 per month)

10,000

Payroll taxes and employee benefits

3,000

Miscellaneous

1,000

Total Monthly Expenses

18,000

   
Income

Amount

Total Sales Per Day (assumes two pounds per day, at $65 per eighth)

16,640

Cost of goods sold per day (assumes $5,000 per pound wholesale)

10,000

Gross Profit Per Day

6,640

Total Sales Per Month

499,200

Cost of goods sold per month (assumes $5,000 per pound wholesale)

300,000

Gross Profit Per Month

199,200

Minus Total Expenses

-18,000

Net Profit Per Month Before Taxes and Owner's Draw

181,200

Net Profit Per Year Before Taxes and Owner's Draw

$2,174,400

   
   
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