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Two Questions


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Question one:

 

What is the cut off price point where home growers will be willing to give up growing in favor of using a dispensary?

 

My price point is $50-75 per ounce. I might go $100 if it is really nice stuff.

 

 

Question two:

 

How soon after Federal Legalization will we be able to order a quarter pound of imported cannabis and have it delivered to our door? Or, more realistically, see imported cannabis at a dispensary?

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1)  I don't have a price point myself.  I simply grow better marijuana than anyone I know,.... ever.

 

2)  Probably years and years.  I suspect , as shown by current state laws, serious protectionist policy will rule the day. Cross state trafficking will be discouraged,... BUT, a few states will allow it.  Transporting through ye ol post office may not be allowed though.

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I would doubt that you are going to see an "out the door" price below $100/z anytime soon from a dispensary.

 

If you look at the various components of the price, $100 would represent a wholesale price of $640/lb.   First there is "tax".  At the moment there are an assortment of taxing schemes, some based on weight, some based on retail price, some called an excise tax, license fee, and others called an enforcement fee.  No matter the name, they are all schemes for government agencies to extract a tax.  I can not conceive of the combined sin tax and sales tax dropping below $20/z.   Second the dispensary can be viewed as a retail business just like any other storefront business.   Most retail businesses operate with a standard 100% markup.  While you will indeed see sales on less than desirable inventory, strains that are in demand will go for the traditional 100% markup.   Backing into the wholesale price, the retailer will have paid $40/z or $640/lb for the consumer to have a $100/z "out the door" price.  

 

The idea of a wholesale price of $640/lb sort of backs into the second part of your question federal legalization.   If cannabis is legalized federally and if commercial outdoor growing is permitted in major agricultural states it becomes reasonable to think the bottom will fall out the wholesale market.   At this point in time I think the number of variables on this issue are equal to or greater than those relating to how soon we will put a man on Mars.   By the time there is enough national support for full legalization, there will be billions invested in indoor and greenhouse grow operations.   The cannabis industry could become the biggest impediment to any changes that would reduce their profits.   The various government agencies that will have come to rely on the tax dollars generated will want to protect their revenue stream.   

 

Anyway, just some thoughts.

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1)  I would have to say when it became cheaper than I can grow it myself. Maybe $25 - $30 an ounce.

Assuming the quality is the same.

 

 

2)  If you're talking about imported from overseas then I would say not in your lifetime. If you mean imported from other states then it's being sold in dispensaries right now.

 

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