How Much Does Cannabis Black Market Dealer ‘Frank’ Make Per Month?
We recently came across an intriguing article that reported on the earnings of a black-market weed dealer the article referred to only as Frank. Using the numbers provided in the article, we decided to calculate just how much Frank could realistically make from selling cannabis on the black market.
The Scenario
According to the Herb.co article, Frank buys a quarter-pound (QP) of cannabis for about $1,000, which seems quite expensive, but we’ll roll with it.
In Frank’s region, weed is typically sold at the following prices:
$50 for an eighth (3.5 grams)
$100 for a quarter (7 grams)
$350 for an ounce (28 grams)
If Frank sells his product by the ounce, he’ll make $400 in profit per QP, netting $100 per ounce. However, if he breaks the quarter-pound into smaller eighths, he’ll make a more lucrative $600 in profit per QP, gaining $150 per ounce.
An impressive 40% return on investment (ROI) for the first scenario, an astonishing 60% for the second.
How We Calculated Frank’s Earnings
To estimate Frank’s potential monthly income, we first assumed that he sells one QP of cannabis per week. With this assumption, we calculated his total monthly profits based on both selling strategies: selling by the ounce and by the eighth.
Scenario 1: Selling by the Ounce
Cost of a quarter-pound: $1,000
Selling price of an ounce: $350
Profit per ounce: $100
Total profit per QP: 4 ounces × $100 = $400 per QP
Monthly …