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.
Washington state’s recreational marijuana stores are in evolution mode. Over the past month or so there have been several new arrivals (see our home page) and those that have been around awhile are really coming along. This is particularly true of the stores in Seattle. Prices remain above black and grey market rates but one Seattle store is selling grams of flower for as low as $7. That is not the norm but many are selling grams of selected strains under $20 and prices continue downward.
Obama Said What?
You’ll be stunned by all the things President Obama said in a recent interview about marijuana legalization. To see the complete list of quotes click here……….
Sir Pot-A-Lot –
The 90s rapper, Sir Mix-A-Lot, was in Vancouver Washington this week examining the wares at The Herbery. Sir Mix-A-Lot, whose real name is Anthony Ray is based in Seattle. He says he doesn’t smoke marijuana but most of the guys in his group do. At the same time, he said he’s strongly in favor of marijuana legalization and regulation, just like alcohol. Read more…….
$1 Grams! –
In 2013 Uruguay became the first country to legalize marijuana. Now companies from Germany and Canada are bidding on the fives licenses available for marijuana growers. Winners will pay the Uruguay government $20,000 per year in fees plus 10% of sales. The government says it will require the growers to sell their crop at the rate of $1 per gram! Read More……….
100 Tribes to Grow and Sell Marijuana –
100 Native American Tribes have indicated that they’d like to grow marijuana and open marijuana stores on their reservations. Read More………
Huffington Post and Newsweek reported that a Seattle company called Soltice rolled 12,000 joints to sell over Super Bowl weekend at medical marijuana stores. According to the owner, 6,000 grams of cannabis, about 13 pounds, was used for this massive marijuana joint production project. The joints were then offered for sale, 12 to a pack in what resembled a standard cigarette pack. The joints were a combination of strains called Blueberry Cheesecake and Headband and sold for about $70. These were sold at medical marijuana dispensaries however Soltice representative said that they will “absolutely” have these 12 packs of joints available for sale at recreational marijuana stores later this year. The company is opening what it terms “the first licensed processing facility”. Read More……..
Snoop Dogg –
Meanwhile music celebrities like Bob Marley’s family and Snoop Dogg are investing in the budding pot industry. Read More………..
Growing Marijuana at home –
It’s legal for adults over 21 years of age to grow limited quantities of marijuana in states such as Colorado, Washington (medical only), Alaska, (after Feb 25th) and Oregon (after July 15th). But remember it’s a complex task so get the book Growing Elite Marijuana which gives you step-by-step guidance. Also check out My Weed Seeds for good quality seeds that will give you a successful crop.
A few days ago Bloomberg News reported that prices at recreational pot shops in Washington state have dropped by as much as 40%.
Then and now
Initial prices for recreational marijuana in Washington were quite high. This was due to multilevel taxation and supply shortages. Since then the state has licensed additional growers and processors and prices now average about $15 per gram compared to the $25 per gram rate of July 2014.
While there are still price challenges, due to what is effectively a 44% tax, this is a big step in the right direction. To complete with the black market, recreational marijuana prices need to be competitive. With black market marijuana grams being sold for $10 we are not quite there yet.
There is no intrinsic reason for pot to cost 25 times the cost of the precious metal, silver. The only thing that makes marijuana expensive is its scarcity. In the coming years, as growers compete more intensely and more and more people cultivate legally at home, we will see marijuana being sold at prices far, far below the prices we see on the black market. I envision a day, in the near future, when ounces of good quality, recreational pot will be routinely sold for $50.
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.
adminColorado: Major price reductions expected in 2015