3 ms·
Several reasons prices stay high: The dispensaries are limited regionally by law, so it's not truly a free market. There are often taxes on the weed as well.
by kriskrunch 5y ago
Several reasons prices stay high:
The dispensaries are limited regionally by law, so it's not truly a free market.
There are often taxes on the weed as well. Gray and black market prices are significantly cheaper.
A lot of the excess stuff is sold to regions where it's still illegal, although those hold outs are dwindling.
Production cost per pound is expensive, and going up across the board: labor, electricity, water, commercial leases, equipment, fertilizers, and grow media.
Top shelf is mostly grown indoors under artificial lights instead of in greenhouses.
Further, the farmer's and dispensary's regulations are complex and daunting.
Grow your own if you want it cheap. You'll quickly learn how challenging it is to produce top shelf.
I'm in the States, but much of this applies to Canada as well.
- tenfourwookie 5y agoCan you explain to me then why there is such a surplus? All of above sound rational to me, and yet, massive and growing surplus while retail prices are increasing. There is bullshit somewhere. Is this what you mean by not quite a free market, that these surpluses are a function of market barriers? They have no one to sell it too? That might explain why concentrates are dropping in price. If you can't sell it, make something with it you can sell. Conjecture, that.
- kriskrunch 5y agoGood question. I wish I had a good answer. You updated your post while I was writing my reply haha Indeed, I believe you nailed it on the update A friend had a situation where he grew a few thousand pounds too much in Oregon before his dispensaries had opened. However, the regulators knew he had produced it all and forced him to sit on the inventory... He decided to send excess trim (waste leaf trimming) from his operations in California up and bring the quality flower back to Cali to sell on the black market here. This was illegal, obviously! Later, he happily destroyed the "excess" in Oregon! Same guy, a year later had facilium wilt and powdery mildew infect his 1000 light operation in LA. He had to destroy thousands of pounds there.. but he really moved it to the black market. I feel sorry for the people that smoked those flowers. It's a shady industry! There is bullshit and fraud everywhere.