60% Plunge in Washington Recreational MJ Prices

Washington State cultivators must be hurting.

The average price of a gram of retail cannabis has plummeted since recreational shops opened last July, from an average of $30 to $12 a gram now, according to The Seattle Times. That’s an eye-popping 60% decrease.

Prices have been on the downswing for months, as an over-abundance of product has led directly to the dramatic drop. While inventory was scare when sales first started, shops can now pick and choose which growers they want to purchase from. Some cultivators could go out of business if they can’t find legal buyers for their crops or the price point is too low.

Regardless, the Washington Liquor Control Board, which oversees the rec industry, is pleased with the current prices.

“The agency was charged with creating a recreational system competitive with the gray and illicit markets,” Brian Smith, communications director for the LCB, told the Times. “We thought if we could get it to $12 a gram, we would be competitive, and we got there in a matter of months.”

7 comments on “60% Plunge in Washington Recreational MJ Prices
  1. Muraco on

    Not according to the actual data – see tretratrak.com – seems like the Seattle Times was an LCB mouthpiece. Furthermore call up the Seattle I502 stores and ask them the average price…

    Reply
  2. Bruce Ryan on

    Average price on the streets runs about $10 a gram. Production prices are $1 or less per gram. Prices must follow the standard dictates of business: Price Quality Service (choose 2 out of 3)

    Reply
  3. David Shaw on

    Try growing indoors at $1.00 per gram. What a joke. Electricity costs more than that. How much is your labor worth? How about water, soil, nutrients,pest control, processing, packaging, traceability time, travel, taxes etc. Minimum to exist is at least $3.00 per gram for growers. Cut down the retail profit so the growers can grow it or it will only be mega-farms left. Which is really the state’s plan. I am out to the tune of many many thousands of dollars and I did not move here to do this. I have been a resident for 40 years. Liars, liars, and more liars.

    Reply
  4. calicorock on

    David Shaw: As a disabled medical marijuana patient I too feel betrayed. Under this law, only MD’s are allowed to provide medical authorizations. However, every clinic and hospital has by-laws and medical practice insurance regulation which expressly prohibit this. That’s why Naturopathic Doctor’s were necessary. The Governor vetoed the 5052 provision that would have legally protected MD’s. It does indeed appear that the true intention of 5052 supporters was to collapse the marijuana market, both recreational and medical.

    Reply
  5. Tom Hawkins on

    Figure it out… using four 600 watt HPS lights covering 14 plants grown in organic soil pots, an indoor cannabis grower can easily end up with 2.5 pounds of very good quality smoke after 100 days, with the ability to replicate this 3.5 times per year. Adding up the costs for a single harvest, not including the initial purchase of lighting equipment, which would include electricity used (14 hours per day average at 15 cents per kilowatt hour), water used, cost of pots (reusable), potting mix, and fertilizer… average total cost for 2.5 pounds; $654.00… $261.60 per pound… $16.35 per ounce, production cost.

    If growers were to sell at a wholesale of $4400.00 per pound, their gross is $11,000.00. If growers were to sell retail at $400.00 per ounce, their gross is $16,000.00. Minus $654.00 equals a nice net either way. The initial purchase price for the lighting equipment is between $1200 and $1500.00 and this equipment can be used for 10 to 15 years with only bulbs to replace every 2 years on average.

    Many of us are not novice growers, but don’t consider ourselves “professional” by any stretch of the imagination. So, at a middle of the road cost of $16.35 per ounce to produce, the complaints of many Medical Cannabis Patients and Recreational Cannabis Consumers, as well, seems to be justified, especially with Medical Cannabis when viewed in the true sense of “compassion”.

    Reply

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