Increased Revenue at Commercial Scale

This case study on commercial grow lights was conducted carefully to not only ascertain whether a room was more profitable with LED grow lights but also to set a benchmark that could be used to assess future project costs and provide accurate revenue forecasts.

Any growing operation with the goal of making profit selling harvests can be considered a commercial grow, this case study was based on a relatively small room with only 12 lights, but when scaled to larger operations the true profitability of PhytoMAX LEDs becomes apparent. When scaled to 100 lights of roughly 1000W each over a 4’ x 4’ footprint, the benefits of PhytoMAX LEDs become staggering.

Taking what we have calculated on the Yields, Profits, and ROI pages we can simply extrapolate the data into a 100-light operation. As those previous calculations demonstrated the PhytoMAX 1000 as the the most intelligent choice when trying to maximize yields, income, and ultimately profits, we will focus this part of the analysis on that light. If you are interested in the same analysis for the PhytoMAX 800 please contact us to provide any custom lighting analysis you may need.

100 PhytoMAX Increased Revenue over 100 SE Ducted 1000 Watt HPS
Commercial volume cost of PhytoMAX 1000$2,100
100 PhytoMAX 1000 cost$2,100 cost/fixture X 100 fixtures$210,000
Commercial volume cost of single-ended ducted 1000 Watt HPS$350
100 SE HPS cost$350 cost/fixture X 100 fixtures$35,000
Difference in initial capital cost$210,000 cost of PhytoMAX – $35,000 cost of SE HPS$175,000
Value of increased yield for single PhytoMAX 1000 over SE HPS per run$14,414 increased revenue from 12 lights / 12 lights$1,201 per light
Annual increased revenue for 1 PhytoMAX 1000$1,201 per light X 5.2 flower cycles per year at 10 weeks per cycle$6,245 per light per year
Annual Increased revenue for 100 PhytoMAX 1000 per Year$6,245 per light X 100 lights$624,500
First year additional revenue for 100 PhytoMAX 1000 after paying for lights$624,500 additional annual revenue – $175,00 initial incremental cost of lights$449,500 for the first year
Additional profit after 5 Years for 100 PhytoMAX 1000$449,500 for first year + 4 years X $624,500 per year$2,947,500

In the room our test was conducted in, it was only possible to run 10 DE HPS due to the additional cooling requirements they created. It would be possible to run 12 PhytoMAX 1000 lights in this room because it could be run 10 degrees warmer with the Phyto-Genesis Spectrum®. However, for this calculation we will compare a simple one-for-one replacement of the lights.

On the Maximizing Profit page we calculated the following:

PhytoMAX 1000 yield per light1.62 lb.
DE HPS yield per light1.34 lb.
Value of Cannabis per pound$2,002 $/lb.
100 PhytoMAX 1000 Increased Revenue over 100 DE HPS
Commercial volume cost of PhytoMAX 1000$2,100
100 PhytoMAX 1000 cost$2,100 cost/fixture X 100 fixtures$210,000
Commercial volume cost of DE HPS$425
100 DE HPS cost$425 cost/fixture X 100 fixtures$42,500
Difference in Initial Capital Cost$210,000 cost of 120 PhytoMAX 1000 – $42,500 cost of 100 DE HPS$167,500
Difference in yield per light from PhytoMAX 1000 to DE HPS1.62 lb./PhytoMAX 1000 – 1.34 lb./DE HPS0.28 lb.
Difference in yield per 100 lights per run0.28 lb./light X 100 lights28 lb.
Value of increased yield for 100 PhytoMAX 1000 over 100 DE HPS per run28 lb. X $2,002 $/lb.$56,056
Annual increased revenue for 100 PhytoMAX 1000 over 100 DE HPS$56,056 per run X 5.2 flower cycles per year at 10 weeks per cycle$291,491 per year
First year additional revenue for 100 PhytoMAX 1000 vs. 100 DE HPS after paying for lights$291,491 additional revenue – $167,500 initial incremental cost of lights$123,991 for the first year
Additional profit after 5 years for 100 PhytoMAX 1000 vs. 100 DE HPS$123,991 for first year + 4 years X $291,491 per year$1,289,955
Loading graph…
This graph shows the 5-year increased revenue with 100 PhytoMAX 1000 above 100 single-ended and 100 double-ended HPS lights.

Commercial Financing for LED Grow Lights

There is no question that LED grow lights are more costly to purchase initially. Even though they are proven to make this money back many times over, you still need the initial capital to purchase the lights.

Black Dog LED has teamed up with multiple leasing companies who can provide options that make sense for any qualified buyer. These leasing companies have been working directly with Cannabis operations to secure reasonable terms that will allow you to upgrade or expand your current lighting with PhytoMAX LED grow lights while keeping an eye on cash flow.

These deals can allow you to finance an entire commercial LED grow light installation with as little as 15-20% down. Based on the calculations on this site you would never sacrifice an additional dollar since the added revenue from LEDs would pay for the entire lease including financing costs and still allow you to send additional revenue to your bottom line.

To have any questions answered, get a customized quote, or explore financing options please contact us at Black Dog LED.