Theory about Karl/Cortez

So I'm high and rewatching True Dromance S3E2 (new weed dealer) and the boys get access to high quality grass and now they need to pay for it having never had to pay Karl. As it turns out however, the boss of their new dealer is a slew of other dealers in rancho, including Karl. So, Karl must have access to higher quality grass, but gives the shittier weed he can't sell to the boys for free. Maybe this is obvious but it's my first time thinking about it really. Opinions?