Keeping costs down can make extraction firms more profitable - here's how

Designing an extraction facility with efficiency in mind can save money in the long run. (Photo by Matt Staver)

(This is an abridged version of a story that appears in the February issue ofMarijuana Business Magazine.)

To become successful in the growing and, thus, highly competitive extraction space, it’s important for companies to keep their production expenses low.

Cost-cutting can be achieved in many areas, especiallyby implementing automation, negotiating discounts with vendors for buying in bulk, streamlining packaging expenses by using the same type of packaging for products, spending the money up front for quality equipment and designing a facility for maximum efficiency and output.

According toAC Braddock, CEO of Eden Labs, an extraction firm in Seattle,The biggest problem we see in costs is in downtime and bottlenecks in the extraction process.”

But such “downtime and bottlenecks” can be avoided.

Braddock and other industry stakeholders who spoke with Marijuana Business Magazine offered the following tips for extraction companies seeking to cut costs:

• Weigh automation versus labor.
• Bigger orders can mean bigger discounts.
• Choose packaging that permits flexibility.
• Don’t skimp on equipment.
• Design an efficient, safe facility.

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Originally posted on Keeping costs down can make extraction firms more profitable - here's how via Cannabis Industry News