Sugarmade Inc (OTCMKTS:SGMD) posted record sales from its BudCars in May 2020. The company reported a sequential growth of 10% compared to the sales in April 2020. Its investments, resources, and time into BudCars in February 2020 are helping the company to reap huge benefits.
Expects to achieve sales of $10 million
Sugarmade is posting a weekly sales growth of 10% and expects to surpass revenues of $10 million by August 2020. CEO of Sugarmade, Jimmy Chan, said the company posted better than expected growth and will maintain the same pace going forward. The company realizes margins by building up inventory at very low prices in the market and deriving higher profits on each unit’s sale. Its team is working at a fast pace to inaugurate a location in Los Angeles soon. The market for legal cannabis in Los Angeles is huge, and Sugarmade expects to generate sales of $20 million annually from this first center in Los Angeles.
BudCars and Sugarmade targets demand delivery
Indigo Dye Group is conducting business as BudCars. According to an interview during Stock Podcast, Sugarmade and its partner – BudCars target Californian market because it holds huge potential for cannabis in the US. Therefore, both the companies target the on-demand delivery service in CA. Operating expenses are lower and improve the profits of BudCars.
After entering a pact a few months ago, the teams at both Sugarmade and BudCars are working together to implement a software system for point of sale. They are also rapidly expanding their fleets to satisfy the demand and grab new opportunities going forward. Both the firms ramped up annual sales to $3.5 million as of today from $0.5 million earlier. Jimmy said the company expects to clock sales of over $10 million by the year-end from Sacramento location.
BudCars provides compliant vehicles to its employees to ensure the safe delivery of the products in time. The company expects to inaugurate three more locations this year. It also plans to increase the locations to ten in the next 24 months. BudCars is capable of providing delivery services to over 60% of the market in California.