martybegan
Diamond Member
- Apr 5, 2010
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It looks like the market is working itself out, that and the State realizes it has to drop taxes a bit to cut out the bottom end black market that is created when something legal is over-taxed (as opposed to the top end black market that is created by making something illegal)
Colorado s Recreational Marijuana Prices are Falling
Colorado s Recreational Marijuana Prices are Falling
After about 18 months of legal recreational marijuana sales in Colorado, the market keeps getting bigger. And now a new survey shows that pot prices in Colorado are actually declining, even as the number of customers increases.
One reason the cost of getting high is getting lower is because of increased competition from new dispensaries and the expansion of growing facilities. The limited number of dispensaries allowed to sell recreational marijuana during much of the first year of legal sales were able to keep prices relatively high, but prices have come down as more and more entrepreneurs get dispensary licenses and enter the market. At the same time, the report by Nicholas Colas, Convergex’s chief market strategist, notes that “it is also a natural result for any maturing industry as dispensaries try to find the market’s equilibrium price.”
Meanwhile, the state’s sales totals could receive a sizable boost on Sept. 16, when Colorado Governor John Hickenlooper will institute a one-day repeal of the 10% sales tax for recreational pot sales. After that one-day tax holiday, the sales tax will be permanently downsized to 8% in a move meant to further squeeze out the state’s black market for the drug, which is still illegal on the federal level.