In case you haven’t heard CNN launched a new show in its 2015 lineup, High Profits. High Profits follows two marijuana moguls, Brian Rogers and Caitlin McGuire, the owners of a legal marijuana dispensary in Colorado. That’s right loves, there is a real live Weeds happening! Move over Nancy Botwin. I asked Rogers if he was interested in franchising and opening more stores and he responded by saying, “Franchise stores are a big headache. We are not sure if we want to go any deeper in the retail industry.”
Of course if you’ve ever watched the show, even just one episode, you can understand why. The show takes place in the beautiful town of Breckenridge, Colorado, where from the beginning you can tell it’s full of old money and even older values. Rogers and McGuire, two game changers, seized their real estate five years ago, knowing their real-life version of Monopoly’s Park Avenue, Main Street, would be valuable someday, and they were right. As soon as marijuana became legal in Colorado, the Breckenridge Cannabis Club (now Back Country Cannabis) earned a whopping $427,000 in one day. With an average of a million dollars made per month during the busy season of the holidays, BCC made 50 percent more than the competition down at Airport Road.
Virgo Girl Media spoke with Rogers to pick his brain on being a marijuana mogul and here is what he had to say.
How is life for you now that the show has aired?
The same really, a few more people recognize me in public.
Is Caitlin still stressed and wanting to get out of the business?
{chuckles} Yes, Caitlyn is still stressed and with the company. The business demands so much attention it is hard for her to walk away right now.
As marijuana becomes legal, do you think corporations will do with marijuana what it did with tobacco?
In terms of taxes, yes, they will do the same thing; although marijuana will have a more positive impact on society than tobacco.
Do you feel marijuana will need to be legal in all fifty states to make the same impact as the tobacco and alcohol industry?
Yes, I do feel it will have to be legal to make the same financial impact. However, marijuana is much less dangerous than alcohol. And it will have more responsible advertising tactics that what was used for tobacco.
From watching the show it is clear nothing was handed to you and that you are facing challenges just like other business owners, albeit maybe a bit more complex. The question is: Are you still taking risks?
Yes, we are still taking risks. We are constantly putting money back into the company for expansion. Every year it is a bigger company. If the federal government woke up and decided to change its mood on regulations, or competitors double down then we could lose everything if we don’t win the next bet. Every day is scary.
Since the show aired, have the feelings of people in town changed for the worst?
The townspeople have finally stopped talking about us. The negativity has gone away, the conversation has gone away.
Briefly share what the production side of business is like.
Production is a whole new type of dynamics with a much higher risk factor and investment costs. You are taking huge risks financially for a grow room. Most of our money from the retail stores has been reinvested in the grow room. We’ve spent $1.5 million on real estate and improvements for the garden. A business model calculates profits and what the profits could be used for and what they are supposed to do, but we are putting money back into the company by making the garden bigger, adding another retail store, doubling down. We are getting to the point where we will be changing gears and going into eatables. Then we will have covered most of the cannabis industry and will decide where to go next.
The show does a great job of summing up why someone should think twice (three times, even) about going into the marijuana industry; from dealing with federal regulations, stress, the opinions of the townspeople, but tell us why you think someone should not go into this business?
It takes a huge toll on your health and your mind. You constantly need to pay attention to the business all the time. Even on vacation you have to be available because you can lose everything in the blink of an eye; big capital investments, tons of money. The days of mom-and-pop shops are over. The industry has become big enough to consolidate and it is hard to compete. The big players will have all the chips and take all the risks needed to succeed. Leaving the not-so-rich guys behind.
Has the show been renewed for a second season?
Not yet! We have to wait to see how this one plays out.
Even with the show’s successful first season it seems that as fast as you make the money it just as quickly disappears. What are some of the biggest expenses for this industry?
Taxes, building a garden, the stores, and labor—paying your workers.
Let’s talk about the hiring process. People are curious, as am I, to know what the qualifications are to be hired. How do you pick people? Do they have to smoke?
Ha-ha. We personally do not care if you don’t smoke, as long as you have an interest in learning and respect those who do smoke.
Do you see yourself as a game changer who is creating a lane for other people or just a mogul building his empire?
People who do stuff first are eventually seen as pioneers. We are people who can show legal weed works.
Do you feel you have one of the coolest jobs?
Outside of the stress level this job is very rewarding. We provide jobs, most of our employees are very happy. Talking to the plants and having a good time watching something grow is great. However, it is one of the most stressful jobs out there dealing with the competition, regulations, policies, and fear of the federal government.
Are you planning to franchise into other cities?
We are not sure if we want to get any deeper into the retail industry.
What is next for BCC?
BCC is a chain of stores; we may start other ventures—eatables and concentrates, but it will be under a different name. That’s our store brand. Completely separate business for wholesale.
Where are they now?
BCC is currently on Airport Road with the competition, with an advantage of course—Brian being Brian, they kept the Main Street store as a souvenir shop and they literally sell everything but weed there. Although customers have to take a two-mile hike to Airport Road to get their pleasure, they do receive a ten percent coupon for heading to BCC. Hmm . . . if I have to go down there for some fun, why not go where I can get a discount? So while everyone media-related has covered the Colorado weed story and probably grown tired of hearing and talking about it, I am hopeful they will get a second season for their show. Being an entrepreneur myself, it is important to learn about the highs and lows experienced by other entrepreneurs and highlight the encouragement and motivation they can share.
Will legalizing marijuana get rid of drug dealers and illegal dealing? Highly doubtful considering the large amount of cash you need to establish yourself, plus the headache and stress of the regulations. But the green rush will continue.
Keep up with #BackCountryCannabis on Instagram @backcountrycannabis, Facebook, or their website www.BackcountryCannabis.com.