All posts tagged: marijuana pricing

Alaska’s Legal Marijuana Reached a Pinnacle of Sales and Production

New figures from the Alaska Department of Revenue reveal Alaska’s legal marijuana industry has reached a pinnacle of sales and production.

Last March, 27 growers paid the state $220,229 in tax revenue. Alaskans purchased 225 pounds of weed or flower and 169 pounds of other plant parts commonly used as raw material for concentrates.

Every one of those numbers are the highest since the state’s first legal marijuana sales happened in the last days of October.

Tax figures trail real sales by one month; numbers for March are released at the end of April. April’s numbers will probably be released at the end of May.

$693,029 in marijuana tax revenue from cultivators has been collected by the state of Alaska. Flower is taxed at $50 per oz and other plant parts are taxed at $15 per oz.

The Alaska Department of Revenue has predicted the state will collect $2 million in the fiscal year that ends July 1. Sales would need to average $433,000 in April, May and June to reach that amount.

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Colorado Marijuana Sales Expected To Break Records

Following the November elections, eight states currently offer legal adult use of marijuana. But regardless of the growing competition, Colorado, which have the greatest number of marijuana sales this past year, will probably still bag higher marijuana sales compared to the other states in 2017.

Only four months into the year, the Centennial State is already on course to possess its highest grossing year yet in marijuana sales. During January and February, Colorado racked up $235 million in overall marijuana sales, a 30% spike when compared with the state’s recreational and medical marijuana sales during the same time in 2016, based on a report by Cannabis Benchmarks, a company that monitors marijuana sales and prices.

With Colorado’s city streets filled with marijuana stores selling medical and recreational marijuana goods and its booming cannabis tourism, marijuana sales across the state kicked off 2017 at full throttle. In January of this year, $109 million worth of marijuana was sold in Colorado in medical and recreational markets, a more than 38% increase from what the state had in January 2016, when marijuana consumers bought $88.5 million in cannabis products. Sales in February were even more remarkable, with the state generating $126 million in marijuana purchases compared to February 2016’s $92.7 million.

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Meet the “Weed Nuns” of California

Located close to the town of Merced in the Central Valley, which generates over half of the fruit, nuts and vegetables grown in the country, the Sisters of the Valley grow and reap their very own cannabis plants.

However, despite the moniker, the sisterhood stresses that its seven members don’t belong to any order of the Catholic Church.

“We are against religion, so we are not a religion. We consider ourselves Beguine revivalists, and we reach back to pre-Christian practices,” said Sister Kate, who founded the sisterhood in 2014.

The group says its Holy Trinity is the marijuana plant, specifically hemp, a form of marijuana which has really low levels of Tetrahydrocannabinol (THC), the psychoactive compound in the plant which gives a high.

The hemp is turned by members into cannabis-based balms and ointments, which they say have the ability to enhance health and well-being.

More than two dozen U.S. states have legalized some form of marijuana for medical or recreational use, but the drug remains illegal at the federal level. California legalized recreational use of marijuana in November 2016.

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Austin’s Potential to be the Capital for Marijuana Start-ups

Anybody who has stood a little too close to Willie’s tour bus or has drifted through the vibrant wonderland that is Eeyore’s Birthday Party understands that pot use is big business in Austin. The city’s enormous student population, sprawling music scene and Dazed & Confused vibe allow it to be fertile soil for herbal treatments.

Of the four principal marijuana bills filed at the statehouse this year, only one has gotten a favorable committee vote — it’s yet to receive a full House vote. That proposed law would ease the law so no one with less than an ounce of grass would face arrest or jail time. Recreational marijuana like they have in Colorado appears to be a pipe dream in Texas.

Dallas city council members, in a way, have recently passed a law that decriminalizes possession. Those caught with less than four ounces get order to appear in court and a ticket instead of being booked and arrested in jail.

Texas lawmakers have brushed aside proposals to legalize marijuana fora long time. And, it was not until 2015 that the state passed a law allowing for a very limited use of cannabis oils for individuals who have epilepsy and suffer from seizures.

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420 Celebrations Around the Country: The Biggest Day for Marijuana

It feels like Christmas for the country’s legal marijuana stores today. Not only Christmas but all other holidays rolled in to one one smoky party known as 420.

April 20 has for a long time been a day full of civil disobedience by marijuana users, who assemble in public to light up weed at 4:20 p.m. The phrase “420” is a longtime code for marijuana users, who work it into dating profiles or post it on signs to show their common interest. But while it used to be a celebration held using a particular degree of furtiveness, the swiftly growing legalization of cannabis means an increasing number of Americans no longer face critical, if any, punishment for smoking weed.

All states that have legalized medical or recreational marijuana also have prohibited public consumption, but those rules in many cases are dismissed on April 20, when crowds assemble on college campuses and central parks to light up. That means huge sales days for shops, particularly in states with operating marijuana marketplaces: Washington, Oregon and Colorado, which could see single-day 420 sales of $20 million.

One of Colorado’s largest marijuana stores, the Medicine Man, anticipated to see more than double the regular number of customers each day Tuesday, Wednesday and Thursday.

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Marijuana Home Delivery Service To Start In Massachusetts

The proprietor of the second dispensary to open in the legal marijuana market in Massachusetts will be the first to offer home delivery services throughout the whole state.

In Good Health, a medical marijuana dispensary which started in 2015, will begin offering marijuana home delivery in an attempt to expand accessibility to the elderly and those suffering from disabilities. David Noble, president of In Good Health, also wants to make medical marijuana more accessible to patients who don’t live in close proximity to any of the 10 dispensaries running in the state, reports The Boston Globe.

The service, which will start deliveries on Monday, was sanctioned by regulators from the Massachusetts Department of Public Health. Regulators formerly approved weed delivery for medical marijuana dispensary Patriot Care, but the company only runs in some of the towns.

“There’s a big population of patients who are disabled or don’t have access to a dispensary, whether they live too far away or can’t wait in a line for too long,” Noble told The Boston Globe. “There’s a real void for all these patients to get safe and reliable access to medical marijuana in a legal way.”

In Good Health expanded its growing space early this year and is intending to start two additional shop locations. The dispensary will offer next-day delivery for absolutely any registered medical marijuana patient. Noble said the company will use two uniformed drivers in unmarked vehicles with security cameras to prevent theft of the products. They’ll additionally use tamper-resistant packaging for the many marijuana products available for delivery.

 

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New Medical Marijuana Fees Expected To Surpass Program Costs

State regulators in Ohio recognize that proposed licensing fees for medical marijuana businesses could initially surpass the state’s costs of running the program.

The program is requested approximately $2.5 million a year for operational costs in each of the next two years. That doesn’t comprise several unknown costs, including preparing the program’s licensing, product tracking and payment systems and creating a necessary toll-free hotline.

In the event the state issues all of the licenses it’s making accessible — 24 to cultivators, 40 to product processors and 60 to dispensaries — fees as proposed would create $10.8 million. The state has also made application fees for the licenses non-refundable.

Several advisers pushed back against the notion that fees may be overly high.

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Washington State Marijuana: Did You Know?

Washington state marijuana: Did You Know? (As of December 2014)

* Recreational marijuana has been legal in Washington state for two years (21 years of age older).

* So far more than $48 million worth of marijuana sales have occurred between growers, processors, retailers and customers.

* Out of the 334 marijuana store licenses allowed by the state government only 89 recreational marijuana store licenses have been issued.

* Two hundred fifty-seven licenses have been issued to marijuana processors.

*Two hundred ninety-eight licenses have been issued to marijuana growers.

 

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Washington State: Lower Prices on the Way?

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Washington state’s poorly designed marijuana laws have resulted in slow retail growth and high prices. One of the biggest failures of current legislation is disallowing existing medical marijuana dispensaries from selling recreational marijuana. For example in Seattle there are almost 200 medical marijuana suppliers but only a half dozen shops that sell recreational marijuana.  Another problem is pricing.  With a 25% tax added to the cannabis product at every stage (production, processing and retail sales) recreational pot costs twice as much as medical marijuana. This price descrepancy is allowing the perpetuation of the black market and hindering tax revenues for the state.  When Oregon pot shops open in 2016 the pot shops on Washington’s border will become obsolete and will likely be forced out of business.

This situation could be remedied if new proposed legislation is passed.  Sen. Jeanne Kohl-Welles (D-Seattle) has proposed a bill that would:

1) Raise the limit on  the number of state-licenses (currently 21 for Seattle and 334 statewide) and allow medical dispensaries to apply to sell recreational pot.

2) Reduce marijuana taxes by consolidating the three step tax into a single levy collected at the recreational pot shops.

3) Reduce restrictions on store locations

4) Share tax revenues only with those cities and counties that allow industry to function in their area.

 

 

 

 

 

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Colorado: Major price reductions expected in 2015

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October 30, 2014 – Despite legalization the black market for marijuana still exists in Colorado. According to websites like Price Of Weed, black market marijuana can be obtained (illegally) for about 30% less than in recreational marijuana stores in Colorado. This is because marijuana stores have the added burden of a rent, employees, taxes, licensing and regulations, packaging etc. Visitors coming to Colorado from other states seem eager to pay the premium prices being charged at marijuana shops anyway but locals who may have contacts within the black market from before cannabis was legalized are complaining. For this reason, at least one recreational marijuana store in Denver (3D Cannabis Center) has begun offering lower prices to local residents versus higher prices for out of state visitors.

This is one solution, but those in the retail marijuana business see a change on the horizon. As the processes for the legalized sale of pot become more fully developed over time, they say, prices will go down. Supply is the main consideration when it comes to pricing and initially recreational marijuana stores were selling cannabis that had been grown for medical marijuana stores. So there were more recreational marijuana stores than before but the supply levels remained the same. This created shortages and sky high pricing for consumers.

However, since then additional harvests have eased the shortage, some retailers predict that prices will be radically lower in 2015 as growers (old and new) catch up with the increased demand from recreational marijuana stores. Another factor that should lower pricing is:  starting October 1st dispensaries are no longer required to grow 70 percent of their inventory.  This means companies solely dedicated to cultivation and growing are now being licensed and developed. One Denver retailer is predicting, that by early 2015, prices for eighths will be as low as $10 to $15 and ounces as will sell as low as $50.

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