He's talking about the "price to grower per pound". I guess that would be the price paid by the people at the top of the distribution chain, far lower than the retail price on the street. But I'm not sure that's what he means, because the phrase is not completely clear.
It's not uncommon for a street dealer to buy a pound and sell it by the gram.
Since the average price for a bad batch of marijuana is bordering $200/ounce according to http://www.priceofweed.com/
That means that a dealer only needs to sell 3 ounces before he turns a profit? And the other 13 in the pound are profit? Ie... a weed dealer makes $2,600 profit on a $600 investment? $3,200 total? Just by selling 16 ounces?
I live in Canada and I can tell you that's not how the math works :P
A good return on a drug investment is 2 to 3 times your money. The person you're buying it from isn't an idiot.
I wasn't claiming his numbers are correct; I have no idea. I was just explaining that he wasn't quoting street prices, but wholesale prices. And the "price to grower" might not be the price paid by the street dealer, but by the distributor who sells to the local distributor who sells to the dealer. That's what I meant by the distribution chain. Just like the vegetables in your local supermarket are not, in most cases, purchased by the store manager directly from the farmer. The markup $600/lb --> $200/oz would not surprise me at all, after the weed passes through three or four levels of distribution.
