Thanks to the increasing number of states legalizing marijuana and people (legally) taking the initiative to grow their own bud, the price of weed has seen a sizable decline in 2017. According to Fox Business, wholesale marijuana prices from late last year have experienced a drop of "roughly half the levels of 12 months earlier."
Brian Shapiro, chief executive officer of CannaSaver.com, told Forbes that his company has witnessed an even greater downturn in prices. “Wholesale marijuana prices declined in 2016 from $2,500 to $1,000 per pound, with some dispensaries offering recreational ounces as low as $65 on CannaSaver.com,” he said.
Forbes is reporting that the price of marijuana in the states of Washington and Colorado currently sits at or under $6 a gram, respectively. It's a far cry from previous marks of $25 a gram in Washington, and $8 in Colorado.
Even though prices have hit a sharp decline in some areas, Jennifer Beck, co-founder of Cannabase, is suggesting that the marijuana industry is involved in a classic case of supply and demand. "Although the consumer is growing—we still see marijuana sales breaking new records," Beck said. "Falling prices and oversupply (including massive congestion in the wholesale space) suggest that sales are not growing nearly as quickly as production."
Now, the goal of growers going forward will depend on the quality of product. Simply put, the better the weed is, the better business the dispensary will get. It sounds like a win-win situation.