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805 Kush

Projections

Planned delivery-only cannabis service for Goleta, CA: start-up budget, operating costs and revenue scenarios from the 805 Kush planning workbook, with arithmetic and labelling corrections applied.

Forward-looking estimates, not guarantees. Every figure on this page is a projection from a planning workbook. Actual results may differ materially. 805 Kush is a design concept: it is not an operating business, is not licensed, and does not sell or deliver any products. Nothing here is an offer to sell or a solicitation to buy securities. Licensing, tax and regulatory assumptions have not been professionally reviewed.

Key figures.

Start-up budget$225,000Total start-up expenses
Annual operating expenses$291,300$798 per day
Yearly net profit, Average$273,08940 deliveries/day, $564,389 net sales
Yearly net profit, range$61,443 – $595,596Low to MAX scenario

Revenue scenarios.

Yearly net profit by scenario (before income taxes and start-up costs) Sheet: Startup Details · Low / Medium / High Delivery Projections
Low$61,443
Average$273,089
High$484,734
MAX$595,596
Daily deliveries, net ticket and net profit Sheet: Startup Details · Low / Medium / High Delivery Projections
ScenarioDeliveries / dayNet ticket*Daily net sales*Less daily operating expensesDaily net profitYearly net profit
Low25$38.66$966$798$168$61,443
Average40$38.66$1,546$798$748$273,089
High55$38.66$2,126$798$1,328$484,734
MAX55$44.18$2,430$798$1,632$595,596

*Net of cost of goods and taxes, per the sheet's net-ticket formula. Low, Average and High use the average net ticket across the four ticket sizes; MAX uses the $120 ticket. Daily operating expenses = annual operating expenses ÷ 365. Net profit = net sales minus annual operating expenses, before income taxes and start-up costs.

P&L estimates by scenario Sheet: Startup Details · P&L Estimates (restated)
ScenarioYearly net sales*− Annual operating expensesYearly net profit
Low$352,743$291,300$61,443
Average$564,389$291,300$273,089
High$776,034$291,300$484,734
MAX$886,896$291,300$595,596
Avg. of High & Average$378,911

*Net of cost of goods and taxes. Net profit = net sales minus annual operating expenses, before income taxes and start-up costs.

Model inputs Sheet: Startup Details · Variable Data Input
InputBaseRange factor
Gross ticket$90$10
Deliveries / day2510
Delivery and ticket matrix Sheet: Startup Details · Delivery Ticket Averages
Row$90 ticket$100 ticket$110 ticket$120 ticketAverageYearly (× 365)
Gross ticket (before CoG & tax)$90.00$100.00$110.00$120.00$105.00—
Net ticket (after CoG & tax)$33.13$36.82$40.50$44.18$38.66—
25 deliveries: daily net sales$828.36$920.40$1,012.44$1,104.48$966.42$352,743
35 deliveries: daily net sales$1,159.70$1,288.56$1,417.41$1,546.27$1,352.99$493,840
45 deliveries: daily net sales$1,491.05$1,656.72$1,822.39$1,988.06$1,739.55$634,937
55 deliveries: daily net sales$1,822.39$2,024.88$2,227.37$2,429.85$2,126.12$776,034
Average day (40 deliveries): daily net sales$1,325.37$1,472.64$1,619.90$1,767.17$1,546.27$564,389
40 deliveries: daily gross sales (before CoG & tax)$3,600.00$4,000.00$4,400.00$4,800.00$4,200.00$1,533,000

Gross tickets step from the $90 base by the $10 range factor; deliveries step from 25 by 10. Net ticket = gross ÷ 1.05 ÷ 1.005 ÷ 1.0725 ÷ 2.28 × 0.95 (the sheet's formula). The average of the four delivery rows' yearly figures is $564,389, the same as the average-day row.

Start-up budget.

Start-up expenses Sheet: Startup Details · Start Up Expenses
State License & Application Fees$35,000
Building Lease During Permit Process$26,000
Vehicle Lease Down Payment$2,000
Architects & Engineers$10,000
Construction$20,000
Vehicle Buildout$2,000
Initial Cost of Goods$30,000
Advertising$25,000
Initial Operating / Contingency Funds$75,000
Start-up expenses Sheet: Startup Details · Start Up Expenses
DescriptionCost
State License & Application Fees$35,000
Building Lease During Permit Process$26,000
Vehicle Lease Down Payment$2,000
Architects & Engineers$10,000
Construction$20,000
Vehicle Buildout$2,000
Initial Cost of Goods$30,000
Advertising$25,000
Initial Operating / Contingency Funds$75,000
Total$225,000

Annual operating expenses.

Annual operating expenses Sheet: Startup Details · Annual Operating Expenses
License Renewals$21,000
Building Lease$26,000
Liability Ins.$9,000
Auto Ins.$1,500
Workers Comp$5,000
Bond$3,000
Payroll - Manager (1)$50,000
Payroll - Drivers (4)$62,400
Vehicle Leases$9,000
Vehicle Fuel/Oil/Repairs$9,000
Utilities/Internet$5,400
Delivery Software$12,000
WeedMaps$15,000
Advertising$25,000
+5% Inventory Adj./Mo.$18,000
Contingency$20,000
Annual operating expenses Sheet: Startup Details · Annual Operating Expenses
DescriptionCost
License Renewals$21,000
Building Lease$26,000
Liability Ins.$9,000
Auto Ins.$1,500
Workers Comp$5,000
Bond$3,000
Payroll - Manager (1)$50,000
Payroll - Drivers (4)$62,400
Vehicle Leases$9,000
Vehicle Fuel/Oil/Repairs$9,000
Utilities/Internet$5,400
Delivery Software$12,000
WeedMaps$15,000
Advertising$25,000
+5% Inventory Adj./Mo.$18,000
Contingency$20,000
Total$291,300

Drivers = 80 hours/week × $15 × 52 weeks. Inventory adjustment = 5% of the $30,000 initial cost of goods × 12 months.

Wholesale pricing model.

Bulk factor pricing (per unit) Sheet: 805 Wholesale Model · Bulk Factor Pricing
Unit wholesale+ Excise tax805 retailNormal retail805 price savings
$20.00$25.40$46.85$57.49$10.64
$18.00$22.86$42.17$51.74$9.57
$15.00$19.05$35.14$43.12$7.98
$13.00$16.51$30.46$37.37$6.92
$11.00$13.97$25.77$31.62$5.85
$10.00$12.70$23.43$28.75$5.32
$9.00$11.43$21.08$25.87$4.79
$7.00$8.89$16.40$20.12$3.72
$5.00$6.35$11.71$14.37$2.66

805 retail = (wholesale × 80% markup + wholesale with excise) × sales and city taxes. Normal retail = wholesale × 2 × excise × sales and city taxes. Savings = normal retail − 805 retail (what the customer saves).

Wholesale model variables Sheet: 805 Wholesale Model · Variables
Wholesale markupGross ticket minimumDeliveries / day
80%$18021.5
Projection with wholesale model Sheet: 805 Wholesale Model · Projections with Wholesale Model
Net ticketDaily net salesDaily operating expensesDaily net profitYearly net profit
$50.09$1,077.00$798.08$278.92$101,803.98

Net profit = net sales minus annual operating expenses, before income taxes and start-up costs.

Tax assumptions Sheet: 805 Wholesale Model · Tax Table
TaxRateMultiplier used
Excise tax (15% × 1.8 markup, on wholesale)27%× 1.27
State sales tax7.25%× 1.073
County sales tax0.5%× 1.005
City cannabis tax5%× 1.05
Total (simple sum, as in the sheet)39.75%

The formulas apply these as multipliers in sequence, so all four together compound to × 1.4373 (43.73%).

Mobile inventory.

Mobile inventory mix (retail post-tax value) Sheet: Mobile Inventory Breakdown · Pie Chart Data
  • Flower $4,624.35 41.4%
  • Vapes $3,005.83 26.9%
  • Extracts $1,387.31 12.4%
  • Edibles $1,541.45 13.8%
  • Preroll $616.58 5.5%
  • Total $11,175.52
Mobile inventory: $10K carry limit Sheet: Mobile Inventory Breakdown · $10K Carry Limit
ItemUnit weight (g)CostStrains / optionsUnitsGram countUnits totalCost totalRetail pre-taxRetail post-tax
Sativa Jars (1/4’s)3.5$15.0022014040$600.00$1,362.00$1,541.45
Hybrid Jars (1/4’s)3.5$15.0022014040$600.00$1,362.00$1,541.45
Indica Jars (1/4’s)3.5$15.0022014040$600.00$1,362.00$1,541.45
Sativa Vapes1.0$13.003103030$390.00$885.30$1,001.94
Hybrid Vapes1.0$13.003103030$390.00$885.30$1,001.94
Indica Vapes1.0$13.003103030$390.00$885.30$1,001.94
Sativa Extracts1.0$12.00351515$180.00$408.60$462.44
Hybrid Extracts1.0$12.00351515$180.00$408.60$462.44
Indica Extracts1.0$12.00351515$180.00$408.60$462.44
Sativa Gummy’s$10.002510$100.00$227.00$256.91
Hybrid Gummy’s$10.002510$100.00$227.00$256.91
Indica Gummy’s$10.002510$100.00$227.00$256.91
Milk Chocolate$10.002510$100.00$227.00$256.91
Dark Chocolate$10.002510$100.00$227.00$256.91
Other Chocolate$10.002510$100.00$227.00$256.91
Preroll1.0$4.002306060$240.00$544.80$616.58
Totals165615375$4,350.00$9,874.50$11,175.52

Retail pre-tax = cost × 2.27; post-tax adds state, county and city taxes (excise not included). Against the $10K limit: cost total $4,350, retail pre-tax $9,874.50, retail post-tax $11,175.52. The post-tax total is above $10,000. Which value counts toward the limit is still to be confirmed.

Delivery operations.

Driver schedule: 10:30am – 8:30pm, 7 days a week (70 business hours) Sheet: Driver Schedule
DriverSundayMondayTuesdayWednesdayThursdayFridaySaturdayHours
1 [AM]10:30am - 3:30pm10:30am - 3:30pm10:30am - 3:30pm10:30am - 3:30pm20
2 [PM]3:30pm - 8:30pm3:30pm - 8:30pm3:30pm - 8:30pm3:30pm - 8:30pm20
3 [AM/PM]10:30am - 3:30pm10:30am - 3:30pm3:30pm - 8:30pm3:30pm - 8:30pm20
4 [AM/PM]3:30pm - 8:30pm3:30pm - 8:30pm10:30am - 3:30pm3:30pm - 8:30pm20
Total80
Deliveries per hour Sheet: Driver Schedule · Deliveries Per Hour
Daily delivery averageActive business hoursDeliveries per hour
4010 hours4

10:30am to 8:30pm is 10 hours a day.

Driver pay calculator Sheet: Driver Schedule · Pay Calculator
Hours / weekPay / hourPay / weekYear
80$15$1,200$62,400

Assumptions & period.

Contact.

Investor inquiries: maadco42+805kush [at] mail [dot] grokbot [dot] com

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