Economy Legal weed is not going as the government hoped.

[JonesBones]

3 to 1 illicit dealers to licensed ones. CNBC has a special called "Weed Killers" about how these illegal dealers are killing the legal companies. Good. lol. Sell this bubble.

LOS ANGELES - The parking lot outside a stark-looking dispensary on a busy Los Angeles street is almost full on a weekday afternoon. Inside, jars of weed line the shelves behind a counter and colorful signs show prices. But if everything looks normal, it isn’t.

The dispensary is part of a booming black market.


“The black market is a huge problem,” said Patricia Heer, an attorney and founder of Cannabis Law Digest. “In some states, it’s between 70% and 80% of sales.”

Many saw legalization of marijuana as a huge economic opportunity, but the reality is its potential isn’t fully realized. An underground economy is cutting into the profits of legal businesses. New Frontier Data, a Denver-based company that studies cannabis trends, estimates there are $70 billion in illegal sales nationally — seven times the size of the legal market. This means the legal market is “capturing only a fraction of total demand,” the company said in a summary of U.S. cannabis demand trends released this month.

In California, early projections anticipated annual cannabis tax receipts of more than $1 billion by 2018. But those predictions were far off, with $345 million actually collected last year, according to the state’s legislative analyst’s office and tax records. The black market is widely cited as a major reason for the lower numbers.

https://www.cnbc.com/2019/07/11/las...reatens-the-growth-of-its-legal-business.html

 

[zebby23]

Only 345 million collected in the first year? Sounds like an abysmal, absolute failure.

People don't simply stop using their dealer simply because something becomes legal. It takes time. People will go to the cheapest, most convenient place to get the product is. Wait until these dispensaries are on every corner.

I edited my post because I hadn't finished reading the article...

These illegal dispensaries will be dealt with the same way any other illegal store is dealt with.

 

[JonesBones]

Only 345 million collected in the first year? Sounds like an abysmal, absolute failure.

People don't simply stop using their dealer simply because something becomes legal. It takes time. People will go to the cheapest, most convenient place to get the product is. Wait until these dispensaries are on every corner.

That's their major problem, they can't jack up their prices because people will just buy from illegal dealers. I am happy with my dealer and arrangement.

I would call 1/3 expected ROI as a massive failure. Yes.

 

[Wet Blanket]

Similar issues here in Ontario.

Few people are willing to pay $18/g when you can get similar quality stuff for as low as $7/g online delivered to your door in as couple days or from your "regular" guy ".

 

[zebby23]

That's their major problem, they can't jack up their prices because people will just buy from illegal dealers. I am happy with my dealer and arrangement.

I'm happy with mine also but if there was a legal store on the corner I would certainly go there. Out of sheer convenience.

I see myself supplementing my normal supply with stuff at these dispensaries

 

[Ornife]

Many individuals have developed excellent working relationships with preexisting businesses over the course of many years.

When you are comfortable and satisfied with the quality and pricing of the product you purchase there is little incentive to bring your business elsewhere.

 

[JonesBones]

Only 345 million collected in the first year? Sounds like an abysmal, absolute failure.

People don't simply stop using their dealer simply because something becomes legal. It takes time. People will go to the cheapest, most convenient place to get the product is. Wait until these dispensaries are on every corner.

I edited my post because I hadn't finished reading the article...

These illegal dispensaries will be dealt with the same way any other illegal store is dealt with.

I just want to reiterate on your stupid comment about its failure. If a company or state said they expect 1 billion in revenue and only deliver 300 million, that is a massive failure.

 

[Long Dark Blues]

I absolutely cannot wait for it to become legal in PA.

Variety of products and garaunteed quality, not to mention convenience, are major factors for me. Right now, it's a crapshoot on all those factors and becomes stressful more so than enjoyable.

Kinks still need to be worked out, for sure.

 

[cottagecheesefan]

I use both the dispensary and my dealer from before it was legal. The dispensaries are more expensive in general, so unless they have a sale, I use my dealer. He grows his stuff himself and I know his set up, so it is clean and good tree, and his ounces are 220, where as the dispensary, you can only get 8ths, which vary from $33-65, depending on the strand.

Both deliver to me, so that is awesome. Having the state provide delivery of 10 prerolled joints on 420 was pretty fun. I had never cared about 420 in the past, but they had a 20% off sale leading up to it.

If I did not know my dealer tho, and know his set up, I would stick with the dispensary. I hated not knowing if/what chemicals are used in growing weed. Back in the day, I remember getting buds that just taste off, knowing there is some weird chemical. A lot of people don't care/realize that tho.

 

[badascan]

so what? if dispensaries offer something the average dealer or grower can't offer then they will attract business. It's called a free market. Where weed is legal dispensaries saturate communities. Guess what... compete or die...

 

[HankScorpio]

Many individuals have developed excellent working relationships with preexisting businesses over the course of many years.

When you are comfortable and satisfied with the quality and pricing of the product you purchase there is little incentive to bring your business elsewhere.

Agreed.

Of course the black market has an edge; they've been in business longer. Over time black markets will come into contact with law enforcement driving up their cost or converting them to legal.

 

[cottagecheesefan]

so what? if dispensaries offer something the average dealer or grower can't offer then they will attract business. It's called a free market. Where weed is legal dispensaries saturate communities. Guess what... compete or die...

This. Here in FL, a 600mg vape cartridge is like 85% THC and is $70. Meanwhile, my dealer gets legit cartridges from CA, that are 1000mg and is 93.5% THC for $60. So I am getting almost double, with a higher THC%, for $10 dollars cheaper.

FL got to step up their game if they want to compete. And $65 an 8th for even the best fire is ridiculous.

 

[Rational Poster]

Legal weed is priced too damn high, duh.

 

[Rational Poster]

This. Here in FL, a 600mg vape cartridge is like 85% THC and is $70. Meanwhile, my dealer gets legit cartridges from CA, that are 1000mg and is 93.5% THC for $60. So I am getting almost double, with a higher THC%, for $10 dollars cheaper.

FL got to step up their game if they want to compete. And $65 an 8th for even the best fire is ridiculous.

$65 an 1/8th.

 

[MASShole]

In Colorado, schools are being renovated, projects are getting funded and much more, even if we aren't at full realization of the game. We just hit $1billion in tax revenue total since it was legalized, and I'm 100% cool with that. We passed TABOR years ago, and just a few years ago we got asked on our ballots if we wanted to get like $5 or $8 back per person in the state because we collected TOO MUCH tax revenue, or would we like to renovate a few more schools. Well, give it to the schools, I can go without a coffee here or there and not be concerned.

It takes time. For people like me, who never really smoked weed, but want to try gummies, bars, lube, etc where those are fairly regulated in amounts, I'm good with going to a dispensary. I don't know any dealers, so the dispensaries are likely getting more adults like me.

 

[Rational Poster]

@cottagecheesefan I'm not a dealer or anything, but sometimes I sell my cousin some of mine for $25 1/8 and feel bad because I'm still making money off him.

Weed has never been this cheap/good in my life. It's going to be very difficult for the state to overcome existing dealer/buyer relationships.

 

[ElKarlo]

Only 345 million collected in the first year? Sounds like an abysmal, absolute failure.

People don't simply stop using their dealer simply because something becomes legal. It takes time. People will go to the cheapest, most convenient place to get the product is. Wait until these dispensaries are on every corner.

I edited my post because I hadn't finished reading the article...

These illegal dispensaries will be dealt with the same way any other illegal store is dealt with.

ATF them? I've never heard of anyone growing their own tobacco. Though it's harder than weed.
I'm sure any big player can get fined and or arrested, making it not worth playing the game.

 

[ElKarlo]

In Colorado, schools are being renovated, projects are getting funded and much more, even if we aren't at full realization of the game. We just hit $1billion in tax revenue total since it was legalized, and I'm 100% cool with that. We passed TABOR years ago, and just a few years ago we got asked on our ballots if we wanted to get like $5 or $8 back per person in the state because we collected TOO MUCH tax revenue, or would we like to renovate a few more schools. Well, give it to the schools, I can go without a coffee here or there and not be concerned.

It takes time. For people like me, who never really smoked weed, but want to try gummies, bars, lube, etc where those are fairly regulated in amounts, I'm good with going to a dispensary. I don't know any dealers, so the dispensaries are likely getting more adults like me.

Word man.
I've never done it. But I want to try it. When I do I'm going to eat, drink k or smoke legal weed. I don't want to mess with any dealer or whacky stuff.

 

[JonesBones]

@cottagecheesefan I'm not a dealer or anything, but sometimes I sell my cousin some of mine for $25 1/8 and feel bad because I'm still making money off him.

Weed has never been this cheap/good in my life. It's going to be very difficult for the state to overcome existing dealer/buyer relationships.

Big money is fleeing too. It was a stock bubble. Weed stocks. It has popped. The owner of Modelo, Corona, Svedka, etc a big fuckin alcohol company, invested billions in one of the biggest cannabis companies. They have already written it off as a loss. lol. I was just laughing at somebody in stock chat for owning weed stocks.

 

[cottagecheesefan]

$65 an 1/8th.

They are out of stock of the strands that are that expensive (White Buffalo and LA Confidential were the two I recall)

The have 2 here that are $53, which is still ridiculous AF. That is still $424/ounce.

https://www.trulieve.com/shop/flower

a few times a year, they give a spend $75 and get 75 free discount, or 20% off for various holidays like even July 4th.... But otherwise they get a strong no for my business.

@cottagecheesefan I'm not a dealer or anything, but sometimes I sell my cousin some of mine for $25 1/8 and feel bad because I'm still making money off him.

Weed has never been this cheap/good in my life. It's going to be very difficult for the state to overcome existing dealer/buyer relationships.

Yup. Even back when I first started smoking around 20 years ago. There was hardly any of the awesome fire that is readily available now. And when it came around and was in short supply/high demand, the most I ever paid was $60. I don't buy 8ths from my guy, but the price he gives me turns out to be $27.50/8th and it is as good of bud as you can find at any dispensary.

I sell it to my brother and our friends for $70. I mean, you got to take a least a little profit for your troubles lol.

edit: not that I deal also. Just when I hook them up a couple times a year... as they smoke a lot less than I do