Forbes article about Advanced

SirLancelot

SirLancelot

Active Member
I mean they would be offering the product at a lower price. First off any companies sole purpose is to make money providing customers something they 'need'. If you cannot generate revenues you cannot stay in business bottom line. No matter the company in whatever industry their in it to make a profit. Dropping prices when Lowering the price for the customers expecting to make it up in sales is just good marketing.
 
hyphae

hyphae

Member
They've got such high markup right now because they're vague about the ingredients and the actual effect each product has and because they claim it was tailor made for ganj. Any other nutrient company will work just as well and a wayyyyy fucking cheaper than AN. I would be willing to bet nearly every nutrient line is made with ganj in mind.

Another thing, because I have seen the pricing guide sheets for AN I know that their markup is literally 100%. Any other company ranging from bulbs to trays to media to nutes the standard markup is 40%. Their controlled pricing with high markups is what ropes in store owners into hocking this stuff since they're literally doubling any investment they put into a case of AN product, assuming they can actually sell the whole case.
 
SirLancelot

SirLancelot

Active Member
Touche, and I agree they are way overpriced for their shit. Epsoma is where it's at! It's all the same anyways. but their just trying to be the BMW in the market.
 
SirLancelot

SirLancelot

Active Member
I'll be honest though, When MJ is legal and companies like this go public best believe I will be there to invest in the companys, there gonna make some money
 
hyphae

hyphae

Member
I hope you're right. I don't think any of the companies are publicly traded right now however. Who knows, once the market is flooded with across the board legalization lots of the companies might eventually bankrupt once the industry declines from people eventually losing interest in cultivation.
 
crazy carl

crazy carl

Member
the statement makes sense, there are so many third parties that would love to do business with this company. I think that its easer for a established company to expand and really its as easy as firing up a bottling plant and filling orders. I would think they will start acquiring property to loan against and then expand.
 
Uncle Ben

Uncle Ben

Well-Known Member
SirLancelot said:
I'll be honest though, When MJ is legal and companies like this go public best believe I will be there to invest in the companys, there gonna make some money
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Any one with any money to invest will stay as far away from these bunch of crooks as they can.

Noobs, their target group, do not have such money to invest in the stock market.
 
SirLancelot

SirLancelot

Active Member
very true, but once mainstream people are dumb and base quality off of price and since they have somewhat of a reputation they would only grow IMO in the market but what do I know I'm no market research expert in cannabis, my market research takes place in manufacturing consumer products.

Not to mention if it becomes legal I have a feeling the "noob growers" are going to outnumber the experienced, but my opinions and guesses don't mean shit. we'll see.

Peace
 
hyphae

hyphae

Member
Sensibowl said:
Sigh. Really?

Here's a little marketing lesson for you.

When demand goes up for something, companies can afford to charge more, but what AN is saying is that when MJ is legalized, they'll charge less. The marking experts would say to do the opposite, but AN is helping out growers by doing something for the growers that are hungry for good nutrients.

Let's face it - WHEN cannabis is legalized, there's going to be A LOT of competition in the nutrient world. Everyone's going to be looking for nutes out in the open, which means that companies who are selling them need to find a way to stay competitive....by marking down prices.

This isn't saying anything about the quality of the nutrients...but nice try to be inflammatory. Always fun to see that people will do anything to rip on AN.

(And just because AN is the one quoted doesn't mean that EVERY OTHER nutrient company will do the same thing when legalization hits. Just because they weren't quoted doesn't mean they aren't thinking the same way.)

And if another company was speaking up, would you be saying the same thing? Probably not.
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And a typical quart of fertilizer from any of the other companies costs around 10-15 dollars, not 40 dollars a quart.
 
Motherhugger

Motherhugger

Well-Known Member
Dude...that article is crazy old. Dug that one out, did ya?

My reaction to the Forbes article is simple. Instead of keeping the prices where they are now, as soon as economies of scale come into play, and it costs Advanced Nutrients a lot less to make their products because of the huge increase in business when MJ is legalized, Advanced Nutrients would do the right thing and pass on their savings to the growers by lowering their prices.

Good for them!!!!!
 
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