For many cannabis brands—especially those without in-house extraction or manufacturing—toll processing is a lifeline that keeps products moving and inventory stocked. But tolling only works when the cost aligns with the service delivered. In a fragmented market where pricing varies widely between states, it’s easier than most operators realize to pay too much for what they’re getting. Here are the five clearest signs it’s time to reassess your toll processor’s value.
1. Your Yields Consistently Fall Below State Averages
Every biomass batch behaves differently, but reputable processors should still provide predictable extraction yields tied to potency and moisture content. If your crude, distillate, or isolate yields consistently land below state-reported averages for similar material, you may be paying the same rate for less output.
Low yields can result from:
- Under-optimized equipment
- Inefficient solvent recovery
- Excessive trim or fines loss
- Poor material prep prior to extraction
If your processor can’t show clear SOPs, batch data, or efficiency benchmarks, the cost per gram might actually be much higher than you think.
2. Your Processor Charges Extra for Standard Compliance Testing
Compliance testing—potency, pesticides, residual solvents, microbials, and heavy metals—is mandatory. Most modern toll processors bundle testing into their quoted price or at least pass through the lab cost without markup. If you’re being charged premium “administration fees,” “handling fees,” or lab rates that exceed the state’s typical pricing, that’s a red flag.
Transparent processors provide an itemized breakdown and lab receipts so you can verify actual costs.
3. You’re Paying Premium Rates for Outdated Equipment
Extraction equipment evolves fast. If your processor operates older hydrocarbon systems with low throughput or ethanol systems without full winterization and filtration automation, you’re paying for inefficiencies built into the workflow.
Today’s leading facilities typically use:
- Fully automated closed-loop hydrocarbon units
- Cryo-ethanol extraction with integrated terpene preservation
- Continuous wiped-film or short-path distillation
- GMP-aligned facility layouts
If your toll partner hasn’t upgraded since pre-COVID, you might be covering their operational drag through higher fees.
4. Turnaround Times Are Longer Than Market Norms
Delays cost money—especially in supply chains where retail partners expect predictable drops. Most established toll processors turn biomass into crude or distillate within 7–14 days. More complex work, such as edibles, vape oils, or nanoemulsion formulations, may take longer, but consistent delays signal bottlenecks that you’re indirectly paying for.
When a partner can’t hit reasonable timelines, you effectively pay higher cost per product because delays slow product releases, inventory cycles, and revenue flow.
5. Pricing Isn’t Tied to Output Quality or Deliverables
Some processors charge flat fees regardless of the outcome. But “flat fees” can mask inconsistent quality or insufficient data reporting. A value-aligned processor provides:
- COAs for every batch
- Detailed mass-balance reports
- Loss accounting
- Clear potency targets
When a partner can’t justify their price through measurable results, the premium isn’t for performance—it’s for opacity.
Bottom Line
You shouldn’t need to be a chemist to know if you’re getting a fair deal. If any of these signs feel familiar, it’s worth revisiting your tolling agreement, comparing market rates, and evaluating partners who offer transparent pricing tied directly to results. Smart brands don’t just shop processors—they audit value.
