Market Saturation Fears Heightening in Oregon

Licensed medical marijuana businesses in Oregon are worried that a surge in dispensary applications will further crowd an already-saturated market.

The state has received 411 dispensary applications since voters legalized recreational marijuana in November, according to the Associated Press. Of that total, 51 were filed since the start of July when lawmakers passed a bill that would allow dispensaries to start selling limited amounts of recreational marijuana on Oct. 1.

That bill has yet to be signed by Gov. Kate Brown.

With more than 300 dispensaries already open in Oregon, licensing more would only add to a glut that’s caused three storefronts to shut their doors, the AP reported.

Many hopeful entrepreneurs likely aren’t aware of the abundance of dispensaries in Oregon as the tide of license applications has accelerated.

The state received just 203 applications for dispensaries in the six months prior to the legalization of recreational cannabis in November.

The Oregon Liquor Control Commission is still working on rules for the state’s rec industry and how it will approach MMJ busineses.

The first recreational shops are expected to open in the second half of next year.

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10 comments on “Market Saturation Fears Heightening in Oregon
  1. Karen Samith on

    I live in Eugene, Oregon. I’ve noticed a huge surge
    some time over the winter months in the amount of people here in EUgene. All of a sudden it seemed as if
    our roads our too crowded and the lines in the stores are longer etc. I sure hope the plan on expanding our road systems here in Oregon.

  2. bongstar420 on

    The fact that they aren’t aware disqualifies them to begin with.

    Any discerning entrants should know what they are up against…either millionaires or the best of the best

  3. Dan Viets on

    The free market should determine which succeed and which fail. As in the wine and beer businesses, small, high-quality operators can compete with major corporations. It is the welfare of consumers, not businesses, which is psramount.

  4. calicorock on

    Dan Viets:

    The “Free-market” is the so-called “Black-market”. The State’s has only one regulatory mechanism for controlling a truly free-market market: Law-enforcement/ incarceration.

    As this approach hasn’t worked out someone forgot to tell the Elmer Fudd’s/Fuddette’s running Washington’s State Senate. By killing RCW69.51A Washington’s well crafted 1998 voter approved MMJ. Olympia just increased the free-market exponentially.

  5. Methford Reigns on

    Medford city council has decided to take a stand using Federal laws. They are not issuing business licenses to MMJ dispensaries anymore. One business owner (patients helping patients) was on his knees pleading/crying with them to reissue his license after the first year(Mail Tribune). They banned him and his business for LIFE(stated). They continue to ignore the statistics vs. alcohol/tobacco deaths, stating it is more dangerous and it doesn’t have a medical use according to the Feds. If anyone can help this small business owner, it would be nice. He and his family have been financially and morally destroyed over a few peoples personal views for not wanting to uphold a state law. The owners name is Phil Carvalho.

  6. Cannabis Med Patient on

    3/4 of the dispensaries in Oregon are failing because of bad business practices. Opening more will certainly not help these numbers out. Most have no clue how to run a dispensary and they hire friends and family. Not a smart idea. If you don’t have professionals behind the counter and helping people then you are not doing it right.

  7. Howard on

    In a market as competitive as Oregon, retailers who want to survive will need to study marketing and sales tactics and trends that big box retailers use to stay competitive. Self service kiosks; mobile app pre-ordering; loyalty platforms; digital marketing based on consumer habits; etc will help to keep the doors opened as the competition continues to heat up.

  8. 420mike on

    I have been to many dispensaries in the last 2 years. They are mostly unregulated, exhibit questionable business tactics, and some of them break laws everyday. Some don’t even refrigerate their edibles. Oregon did some things right, allowing home grows by everyone was the right thing to do. But the RAC (rules advisory committee) designed to implement Measure 91 is filled with career politicians. They have done really nothing but make a lot of meetings, whatslegaloregon webpage, and grab a million bucks from the government coffers (all public records are online). They don’t seem to have a clue as to what is going on in some of the dispensaries today. Now they are going to let all of the bad dispensaries continue their bad ways. And now let them sell to the public, what a mistake.

    Dispensaries fail because of bad business practices. And there is a lot of them in Oregon.

  9. Ex MMP User on

    Most of what I have read above is just plain ridiculous! Competition is good, as it promotes both a reduction in prices and an improvement in quality, just as with any other product on the market place. The best will succeed, and the others will fail, and this results in only a better product for the end consumer.

    I also look forward at not having to jump through the gauntlet, nor the delay, caused by the costly and lengthy process of getting the OMMP card. I will now be offered a greater selection from which to choose, and not be tied to a designated grower, …which will only motivate growers to produce better product in order to retain their former OMMP clients.

    After all… we all know how the ceasation of alcohol prohibition caused a decrease in the quality of liquor… from moonshine to champagne!(sarcasim intended).

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