• Ctipp22
    1.6k
    What do you guys think weed should cost per gram?
  • EconMan
    2.7k
    That is such an interesting and challenging question. Because you said "what" :nerd:

    I have found in the relatively wealthy suburbs retail is an easy $350 and often $450 ($12.50 & $16.00 respectively per gram) in price for people of means and rather distant from the origin. Yet, folks closer to the city itself, often find themselves farther up the food chain AND benefiting from a flatter more "elastic" demand curve. Personally, I'm shocked at what some people pay.... My last batch was $6.5g and I am no power buyer.

    $20 per gram weed needs to be something grown in heaven; no posers at that price.
  • Ctipp22
    1.6k
    I think top shelf should be 10 bucks per gram, but some are getting much higher now.. Stores pay about 1.50 to 2.50 per gram. A lot of growers went broke at those prices around here and lost the equity in there businesses.
  • Baron23
    7.9k
    Yes. Volatility in prices up the chain.EconMan

    No, not up the chain...there have been many, many articles published in the last year on the crash of the wholesale/direct from grower market, particularly in WA, OR, and CA.

    Taht's why I'm saying that unless this is area of the country specific, I can't be meaningful.

    Take care

    What do you guys think weed should cost per gram?Ctipp22

    Right now, EVERY state has a completely different regulatory environment and in some cases (maybe all) differences between intra-state med and rec programs.

    There is, to my mind, no "should cost" that applies everywhere.

    Here in MD, ALL MJ is currently med and ALL of it has to be grown indoors in order to comply with MD's very specific requirements. Does this apply to CO? No, not IMO.

    Cheers
  • GhostMV1User
    278
    @Baron23 us correct. It depends on where u are, status of your state, medical, recreational etc.

    There was an article in a local newspaper awhile back about the effects in Washington on prices. The spiked the first year, went down after that.

    Until its something like Canada, where it's legal everywhere u probably won't see pricing consistent. Even then unless its strictly controlled probably not
  • EconMan
    2.7k
    This is a HUGE development which will have a significant impact on the cannabis business...

    Perhaps business expenses will become deductible? :scream: :pray:

    CODE SECTION 280
    No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted

    https://www.forbes.com/sites/peterjreilly/2018/12/17/irs-and-marihuana-reefer-madness-tax-court-harborside-decision/#2cb69b421610
  • Baron23
    7.9k
    Is this new? I thought this is the situation as has been for five years or so since CO legalized???

    Its a battle that is being fought constantly in DC. I thought Cory Garder had an amendment to the recent criminal justice reform bill (amendment didn't make it), for example, on this subject and the issue of interstate banking???
  • TheZman
    286
    I think $8 to to $12 is reasonable. Depending on quality and strains.
  • iamcanadian
    75


    We Canadian medical users are paying $6 - $12.50 CAD for a gram of dry pharmaceutical herb.

    Canadian provincial government retailers, like Quebec's SQDC or Alberta's Gaming and Liquor and Cannabis Commission, charge between $7.25 and $14.00 CAD per gram.

    Canadian recreational retailers like Fire and Flower or Nova Cannabis, charge $10 to $18 CAD per gram.



    (see sample screenshots below)

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  • TheZman
    286
    Sounds pretty reasonable. Although I dont know what CAD translates to US dollars. Here in Pennsylvania US I'm paying between $15 and $20 a gram. Which to me is pretty pricey. I get a 15% military discount though. So most of the grams I buy come out to $13. And the 3.5 gram jars I'm paying around $50.
  • iamcanadian
    75
    , the Canadian dollar is 73 cents on the US dollar today.

    So,$6.00 -$12.50 CAD translates to $4.38 USD - $9.13 USD.

    As of right now, it is far more affordable to be a dry herb toker in Canada than in Pennsylvania.
  • TheZman
    286
    Wow. That's Awsome. I wish those were the prices here. Good for you guys. In PA there trying to Capitalize on the medical patients.
  • EconMan
    2.7k
    There will not be a socialized California weed Bank.
    Ouch! :groan: The Empire strikes back :gasp:

    https://www.pressdemocrat.com/business/9111157-181/cannabis-industrys-hope-for-california
  • EconMan
    2.7k
    The vape and medical marijuana industry has an enemy. She has a name. Sheila Polk, a district attorney from Arizona. Check her absurdities out on Twitter.

    My company is filing an amicus brief in the infamous "Rodney Jones" conviction, where Mr. Jones spent two years in prison for a felony conviction for possessing concentrated marijuana, a substance he purchased from a dispensary in Arizona. Prosecutors argue concentrates were excluded from AZ's medical MJ laws. Mr. Jones case is up for appeal to the state's highest court, in a decision that will impact the entire country.

    If I was an Arizonian, I would be concerned. I'm not and I'm concerned.
    (The AZ law under appeal literally defines "resin" as a "narcotic" :scream: )
  • EconMan
    2.7k


    Baron, yes I did! Thank you.

    And this new one is also BS :roll:
    Medical patients everywhere should be utterly offended.

    https://www.cannabisbusinesstimes.com/article/cbs-rejects-super-bowl-ad-medical-marijuana/
  • Dr green thumb
    4.6k


    Yet they promote drinking of beer and hard liquor. Wtf
  • Gryfin
    122
    I mean I can't blame them. Their interest is business and promoting something illegal in all of the country isn't good for business. Just because states allow for medical use doesn't mean its federally legal, nor widely accepted.
  • EconMan
    2.7k
    And California is acknowledging economic theory and behavioral psychology. :cool:


    https://www.cnbc.com/2019/01/28/calif-bill-introduced-to-slash-pot-taxes-as-legal-industry-struggles.html
  • Baron23
    7.9k
    And California is acknowledging economic theory and behavioral psychology. :cool:EconMan

    I don't care why they support it, I applaud any politician who supports legalization. But I don't make the mistake of thinking they and I share any core values on this subject.

    The politicians are JUST in for burnishing their re-election chances. Tax money to spend on programs (read buy votes from recipients) and as always, leading their electorate from behind.

    Cuomo is a great example of the latter. This shithead wouldn't have moved on MJ at all if it wasn't for the threat of Cynthia Nixon and the further left wing of his party. The man is an empty suit, but as long as he supports MJ, on this topic alone we agree.

    CA is a great example of the former....they all thought they were getting ready to jump on the Greeback Express to tax revenue and shock of shocks...their electorate is voting with its feet (its money, really) and telling them to fuck off.

    NJ is the same deal...what is the single hold up in passing this legislation...the Governor wants 25%, some politicians with a bit more smarts are advocating 10-12%. In any and all cases, its just about the money.

    So, support political hacks that support legalization of MJ, but don't make the mistake of thinking you really have common cause with these self-serving pricks.

    Oh, can you tell that I hold almost all levels of American government in contempt? haha
  • EconMan
    2.7k


    I do not disagree with your analysis. Not at all.

    Was it not Cuomo just a few years ago who claimed MJ was a "evil gateway drug" or something like that...? Even Rick Perry -- not the brightest bulb in the socket -- has come to his senses on this.

    Nevertheless, Sessions getting the boot made a lot of people feel better. Attitudes of the banks started softening a bit right after.

    Regarding your last sentence, yes, but sadly the reason is it too often it behaves contemptibly towards the very people who collectively justify its existence.
  • Baron23
    7.9k
    Was it not Cuomo just a few years ago who claimed MJ was a "evil gateway drug"EconMan

    Indeed...that and a number of other really stupid statements. I don't think this one is the sharpest Cuomo in the bunch, frankly.
  • EconMan
    2.7k
    And so it begins. The CBD "backlash" all the bankers have been worried about.

    https://www.cnn.com/2019/02/07/investing/cannabis-stocks-bubble/index.html
  • BobCat
    1.7k
    Yessum. I posted about the CBD regulation yesterday.
    https://forum.vapelife.com/discussion/comment/96862
    Reading the FDA's statement fron Dec.20 2018, it seemed a fairly certain foreshadowing of firm imminent regulation.

    The Constellation Brands aspect mentioned in your link is crucial to me. When Canopy Growth acquired Storz & Bickel, I feel the importance of Constellation Brands in the equation was overshadowed. I believe @VapeCritic and @Hazel noted this link in a livestream.

    Constellation, a Forbes Global 500 company, owns 37% of Canopy with an option to buy a controlling interest up to 50%. In Canada, you can now buy a Volcano or Mighty at Walmart CA online. Seems like the MJ industry will be big business. My reckless speculation is that Storz & Bickel were kept on mainly in titular or figurehead roles to assuage investors' concerns.

    Have a great Friday.
  • EconMan
    2.7k


    So sorry! I missed it! Things can get lost in that thread quick .. lol

    Interesting theory on S&B.. I wished I knew their sales, and I could stop talking out of my ass on the subject; but merchants on here like @To the Cloud tell me their best forecast of their sales were much higher than I "premised" them to be..... My suspicion is S&B was a cash-cow, that on a NPV basis, their acquisition was at least half due to this NPV of their income stream. From an economic perspective, they have to be the envy of the market -- they have been selling high-margin products for a long time.... and they have not suffered massive development costs (including blunders) by updating their product line every year. (A friend has a five-year old volcano. Mine is less than a year. His works no differently than mine, except I paid for the digital readout).

    And something I find really interesting and have my RA researching for me now, is the international political economy of all this. The USA, with respect to Canada is the 800# gorilla, and US laws, although not really binding on Canadians nevertheless do impact them since Canada is so incredibly intertwined into the US monetary system. (something like 90% of all canadians live within 100 miles of the US border). Indeed, if you are a canadian or usa merchant and want to seamlessly sell independent of currency or border crossings, that can structured out quick and easy by a competent Merchant Banker. .... can't think of two other countries that can be easily done between?

    So, as of a few months ago, I was told by an executive of Scotia Bank that no canadian banks were, at least at that time, marijuana Merchant Banks. It was rogue US banks that have provided most of the merchant banking. US policy ABSOLUTELY impacts Canadians in this regard. The big US banks are the "correspondent bankers" for the smaller Canadian banks, and US Law impacts US Big Bank behavior, which in turn impacts Canadian Merchant bank behavior.

    Until the US Congress acts definitively (which is not at all probable soon), WEED IS STILL ILLEGAL. Yes, even in your legal state. (Friend in Cali just lost an appeal on his wife being fired from her job at Lockheed after 24 years of good service by violating their "zero tolerance" drug abuse policy -- imposed upon them by the US Feds as a price of doing business with them (Anti Drug Abuse Act of 1988 and this ALSO applies to Canadian businesses who desire to do commerce with the USA government.

    Regarding the market, it is in its infancy and there will be more failures than successes. We are no longer accepting new cannabis accounts except by referral. The risk is becoming prohibitively high. Almost all of our business is referral, except the MJ business. We've had to hire a temp just to screen the phone calls, and to be honest, the quality of the applicants are often rather poor. I you have a Felony on your record, you are NOT going to get a Cannabis merchant account. Ironically, if you have a Cannabis felony conviction, even old, it is doubtful you will get one.... banks are just too tight with them. The last one, we had to partially underwrite (accept partial responsibility) because the bank wanted someone else to bend over should they fail and/or the Feds destroy them. We did it because it is a long-time client we believe in, but if he screws the pooch, or is raided with his inventory seized, if they bank can't dig it out of him, they come to me

    So I'm out of all MJ stocks, funds, and enterprises, other than some roulette money I threw into a couple "vice" mutual funds. :naughty:

    Study any infant industry and the first to market and the best ideas are not usually the ones who prevail -- but rather the ones who can author and EXECUTE a business plan well. VERY OFTEN the person who has the idea, or even starts the company, sucks at actually doing the hard work of managing a business and making "tragic choices". I Love Pink Floyd music. Without Syd Barrett their early music would not exist today. With Syd Barrett their later music (Wish You Were Here,, Dark Side of the Moon, Animals, The Wall, etc..) would not exist.
  • BobCat
    1.7k
    So, as of a few months ago, I was told by an executive of Scotia Bank that no canadian banks were, at least at that time, marijuana Merchant Banks.EconMan

    I live in a Detroit burb, went to college in Detroit, worked there for years. Canada never seemed like a 'foreign' country to me.

    I think the Novia Scotia exec may have given you spurious info, but I have no idea of the veracity of the links below. Since weed is Federally legal in Canada, the articles seem to make sense. :victory:

    For your reading pleasure

    https://www.potnetwork.com/news/redfund-capital-opens-canada%E2%80%99s-first-medical-cannabis-merchant-bank

    https://www.cnbc.com/2018/09/25/meet-the-banks-that-are-leading-the-deal-market-for-pot-stocks.html
  • Dr green thumb
    4.6k


    great find! I do not understand why banks would have no problems with liquor and beer while still having an issue with pot. I'm talking in Canada where it's legal where I'd think the banks would be fighting to get in on the money they could be making in this billion dollar industry.
  • BobCat
    1.7k
    I agree, and the timing of these articals, August 2018, makes sense. However, I defer to @EconMan as this is his wheelhouse.
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