5 Reasons Your Margins May Be Wrong, And How To Fix Them How Costing, Inventory, Equipment, And Complexity Distort Profitability

Traditional costing methods can hide what cannabis truly costs to produce, leaving operators to make pricing, production, and investment decisions using margins that may not reflect reality.

Examination of five common sources of margin distortion, including cost averaging, inventory treatment, equipment utilization, and SKU complexity, and show how actual resource consumption can provide a clearer picture of product economics.

Attendees will leave with practical ways to evaluate:

  • where capital is consumed,
  • which products and processes actually contribute to profitability, and
  • whether the margins guiding their decisions can withstand scrutiny.