Comments by a reader of my blog informed me that wholesale prices of state-legal-federally-illegal recreational marijuana have dropped dramatically. That got me to wondering what has happened to the pricing.
I’m am otherwise totally clueless of the pricing in this market. What I know I learn by reading the ‘net.
Just so everyone knows, I am following this story because it is a natural experiment to see the impact of crushing regulation imposed on a newly emerging industry.
The commenter shared a recent report on CNBC quoting a producer saying the wholesale prices had dropped from $1,700 to $2,200 per ounce down to $700 per ounce.
The range in price is due to different qualities. That would give wholesale prices in the range of $60 to $77 per gram in the recent past to around $25/gram currently.
That gives these data points:
- $1,700 to $2,200 per ounce sometime prior to the CNBC article
- $700 per ounce at the time of the CNBC article (date unknown)
So using the ‘net, which is the most incredible educational tool ever invented, I search for about 10 minutes and found a lot of great info. Spent another 10 minutes reading promising articles and found the following: