1. Executive Summary
🪣 The Bucket Method: Proven Results
The Model: 24 strain slots (8 Hybrid, 8 Sativa, 8 Indica). Keep them full. Money rolls in.
Current Status: All 24 buckets FULL. Now in maintenance mode.
Tim's Quote: "Me and Sandy have never seen that in all the years we've been doing this."
KBR Processing Hub has transitioned from a cultivation facility to Red Run's central processing and distribution hub. By leveraging purchasing power across 6 retail locations, KBR buys wholesale flower, processes it into retail-ready products, and maintains consistent menu coverage for maximum revenue.
2. The Bucket Method Framework
2.1 Concept
The bucket method treats each strain slot as a "bucket" that must remain filled to maximize revenue. Empty buckets = lost sales. The goal is not to find the perfect deal, but to maintain consistent coverage across all categories.
2.2 The 24-Bucket Matrix
| Category | Target Slots | Flower Target | Pre-Roll Target |
|---|---|---|---|
| Hybrid (H) | 8 strains | Up to 3 lbs each | ~600 units each |
| Sativa (S) | 8 strains | Up to 3 lbs each | ~600 units each |
| Indica (I) | 8 strains | Up to 3 lbs each | ~600 units each |
2.3 Bucket Health Indicators
Full (2-3 lbs, 14+ days) Low (1-2 lbs, 7-14 days) Critical (<1 lb) Empty (Gap!)
3. Processing Operations
3.1 Team Structure
| Role | Person | Responsibilities |
|---|---|---|
| Facility Manager | Tim Clark | Purchasing, strategy, oversight, retail coordination |
| Lead Processor | Sandy | Processing lead, QuickBooks, fulfillment |
| Processor | Amber | Trimming, packaging, pre-roll production |
| Processor | Mikel | Trimming, packaging, pre-roll production |
3.2 Production Benchmarks
| Task | Rate | vs. Industry |
|---|---|---|
| Trimming (flower) | 1 lb per employee per 6 hours | 25% faster than standard |
| Pre-roll production | 400 units/hour (2 employees) | Matches industry |
| Eighth packaging | 100 units/hour per employee | Standard |
| 3-pack packaging | 200 packs/hour | Standard |
Monthly Capacity: 80-120 lbs depending on product mix and labor allocation.
3.3 Processing Model
- Demand-driven: Process to fill gaps, not batch production
- Bulk inventory: Material received is held until needed
- Fast movers: Immediate gaps filled within days
- Slow movers: May wait weeks until demand aligns
4. Sourcing Strategy
4.1 Dual-Source Model
Internal: Pittman Cultivation
- Cost: $2.50/gram
- Strains: Honey Banana, Garlicane, Black Lemon Glue, etc.
- Target: 40 lbs/month
- Issue: Inconsistent production
External: Vendor Purchases
- Dope Dynasty (premium)
- Worner Bros (bulk)
- LBS (select strains)
- Stoned Salmon Farms
⚠️ The Pittman Challenge
If Pittman produced reliably at 40 lbs/month, vendor purchasing would decrease significantly, improving margins. Current issues preventing this:
- HVAC problems: Room 2 temps reaching 88°F, lights reduced to 60-70%
- RO water system: Chronic flow issues, requiring deliveries
- Equipment failures: Solenoid issues, electrical problems
- Infrastructure: Roof leaks, building maintenance
Priority: Service Room 2 HVAC before 4/13/26 harvest.
4.2 Investment Analysis Criteria
When evaluating vendor purchases, score based on:
- Fills a gap? (Does this replace an empty bucket?)
- Turnover velocity (How fast will it sell?)
- Margin (Cost vs. retail price, minimum 30%)
- THC potency (Premium >28%, Mid 22-28%, Value <22%)
- Volume (Larger quantities = better pricing)
5. Financial Framework
5.1 Q1 2026 Cash Flow (KBR)
| Month | Cash In | Cash Out | Net |
|---|---|---|---|
| January | $25,437 | $26,299 | -$862 |
| February | $46,053 | $125,331 | -$79,278 |
| March | $56,783 | $95,275 | -$38,493 |
| Q1 Total | $128,273 | $246,905 | -$118,632 |
Note: Negative net reflects inventory investment (vendor purchases). Revenue recognized when processed product sells to retail.
5.2 Cash Out Breakdown (Q1)
| Category | Amount | % of Total |
|---|---|---|
| Vendor Purchases | ~$105,000 | 42% |
| Pittman Material | ~$35,000 | 14% |
| Cultivation Tax | ~$20,000 | 8% |
| Payroll | ~$28,000 | 11% |
| Rent (ACG) | ~$12,000 | 5% |
| Other/Utilities | ~$47,000 | 19% |
6. Strategic Priorities
6.1 Immediate (Now)
- Maintain 24 buckets full — Zero tolerance for empty slots
- Optimize purchasing — Use Investment Analyzer for vendor decisions
- Fix Pittman HVAC — Service before 4/13 harvest
6.2 Short-Term (Q2 2026)
- Increase Pittman reliability — Target consistent 40 lb/month
- Reduce vendor dependency — Higher Pittman % = better margins
- Build tracking systems — Dashboard for bucket monitoring
6.3 Long-Term Considerations
- License conversion? Cult → Manufacturing (lose tax advantage, gain capabilities)
- Building expansion — "More can be done" in the facility
- Capacity scaling — If demand grows, expand processing
7. Key Performance Indicators
| Metric | Target | Frequency |
|---|---|---|
| Buckets Filled | 24/24 (100%) | Daily |
| Monthly Revenue | $100,000+ | Monthly |
| Pittman Output | 40 lbs/month | Monthly |
| Pittman % of Inventory | >50% (goal) | Monthly |
| Gross Margin | >30% | Per deal |
| Turnover (fast movers) | <7 days | Per strain |
| THC Minimum | 19% | Per batch |
Appendix A: Current Inventory (4/1/26)
68 SKUs across categories: Flower, Pre-Rolls (0.5g, 1g), Pre-Pack Eighths, Trim Jars
Top THC strains: Cap Junky (32.46%), Peach Sangria (32.20%), Hippy Headband (31.72%)
Vendors represented: Dope Dynasty, RRCu, Worner Bros, LBS, Stoned Salmon Farms, Permafrost
Appendix B: Pittman Status (4/2/26)
Lead Cultivator: Wyatt Dupps
Last Harvest: 28.9 lbs (3/19/26) — below 40 lb target due to equipment issues
Next Harvest: 4/13/26 (Room 2)
Active Issues: Room 2 HVAC (critical), RO water, roof leaks
Strains in Rotation: Honey Banana, Hashburger, Kush Mintz, Orange Berry, S.Dot, Garlicane, Black Lemon Glue