Survey Shows Drop in Colorado Cannabis Prices, Spending

Increased competition has led to a decline in marijuana prices and per-customer spending, according to a survey of Colorado cannabis businesses.

Customers are spending about $50 per visit, half of what they were a year earlier, according to a survey by Convergex, a New York-based brokerage that services institutional investors. Flower now sells for $250 to $300 an ounce, on average, down from about $300 to $400 last year.

Increased competition as more recreational shops and dispensaries open is leading to the drop in prices, the company said, adding that the decline is a “function of a maturing market as dispensaries try to find the market’s equilibrium price.”

Convergex’s survey also found that companies are increasing marketing, including the use of magazine ads, online directories and raffles for sporting-event tickets. Rallies and concerts drive business as customers stock up on marijuana, and 4/20 – as always – is a big event. Concentrates are popular among 20-somethings as they are “cleaner” than smoking flower, the survey said.

Another sign of the industry’s maturity: sales trends now mimic those of traditional retailers. Sales increase during holidays, decline after New Year’s Day, and speed up again when people receive their tax refunds, usually in April.

3 comments on “Survey Shows Drop in Colorado Cannabis Prices, Spending
  1. victoria smith on

    Sales prices are $89 – $120 for an ounce; wax can sell for as little as $15 a gram. Yesterday I bought a quarter of beautiful flower for $30 out the door (medical). This is in Denver, which has hotly competitive medical and recreational stores.

    Reply
  2. Seth Tyrssen on

    There is NO reason for outrageously high prices. Hey, I’m old enough to remember bitchin’ about the price hike from ten, to fifteen bucks per oz. I realize those days are gone forever, but anything over a hundred is TOO MUCH.

    Reply
  3. Myx on

    In Oregon an OZ averages $200 and has been pretty stable for the last year. I hear its going up because of the massive taxes the state wants to squeeze out of the growers for the recreational market and now they are trying to do the same to the Medical growers. I can get high grade for 100 oz from fellow Medicinal growers in between harvests but im also given a lot due to being a hard rock guitarists lol.

    Reply

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