Coloradans are spending more money on cannabis, but the average daily consumer is buying cannabis at a lower cost than they were spending last year. Colorado’s weed is getting much cheaper, and industry specialists have come to believe the cause of this is the expansion of the marijuana industry into Pueblo and beyond. Pueblo pot is believed to be driving down the prices of cannabis all over the state, and here’s why.
In October 2015, a wholesale pound of cannabis could be purchased for somewhere in between $2,400 and $2,600. Since then, the price has been slashed and a pound of weed typically falls somewhere between $1200 and $1500, thanks to data from Tradiv, which is an internet based cannabis distribution resource.
“In less than a year, we have seen wholesale prices drop to nearly half of their previous totals,” John Manlove, director of sales at Tradiv said in an email. “We’ve never seen prices like this.”
Prices of cannabis are plummeting so rapidly due largely to the fact that the cannabis market is being flooded by new industry players, including the few new players in Pueblo county.
Pueblo recently got more involved with the recreational cannabis industry. In December, Pueblo City Council finally established the licensing process for their very own recreational pot shops. It’s been a long time coming, but the rules and regulations have finally been established and set up for dispensaries in Pueblo proper. The city has also decided to allow 8 recreational marijuana shops within the city jurisdiction, as well as how much they will pay in fees per year, and in which zones they can operate.
Colorado cannabis growers are producing tons (literally!) of cannabis, and the amount of pot hitting the shelves in stores both new and old are causing a steady decline in the price of wholesale bud regardless of the actual consumer demand.
Another thing to consider is that the most expensive and highest-margin products for recreational stores are things like joints, edibles, and drinks. If this trend continues, the prices for raw flower will continue to drop significantly.
It’s also likely that the retail market will adapt by focusing more on producing these products and getting them to consumers.
Washington and Oregon experienced a very similar phenomenon where the price of recreational cannabis dropped significantly and rapidly since the first rec stores opened their doors according to The Cannabist. If there’s a legal market, prices will decline as it expands.
Colorado growing specialists have very few limits on how cannabis is grown and are able to sell weed to an even larger market than before. The only issue is that these cultivators will see smaller profit margins for a while. The good news is that consumers will be able to purchase recreational cannabis at a deeply discounted price. Pueblo getting their licenses prepared in December has driven the prices way down as well. So if you’re a die-hard flower fan, prices are only going to get better for you. Enjoy!