Mike Khemmoro, the chief operating officer of Mango Cannabis, a small multistate operator with retail permits in four states, was looking forward to a smooth opening at the company’s New Buffalo location in Michigan.
But then the state imposed a new 24% wholesale tax to take effect on New Year’s Day.
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In a market with established big players and well-known price compression, Mango couldn’t afford opening a new store understocked – and couldn’t afford falling behind on pricing or margin.
So he had to figure out an inventory solution.
“We adjusted by essentially tripling what we would normally have purchased for initial inventory,” Khemmoro told MJBizDaily. “Without planning for that, we would have opened even more behind the eight ball
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