Last Friday, Marijuana Business Daily, a national business journal that tracks market trends in cannabis, published an article about the state of medical marijuana in Oklahoma. There are a lot of dispensaries, have you heard? We’re in the middle of a price war, and it’s getting bloody.
“So many medical marijuana dispensaries have opened in Oklahoma that many stores are slashing prices to stay competitive.
The downward pressure on cannabis pricing has some dispensaries fearing for their future even as they brace for yet more possible business challenges that could result if the state enacts more cannabis regulations related to testing and labeling.”
Incredibly lenient policies and inexpensive business licencing have led to an incredibly full, competitive market. To keep the doors open and MMJ patients coming back, dispensaries are clawing to outdo each other — dropping all those sweet green deals that keep your phone vibrating nonstop with alerts. Oklahoma is still the Wild West of Weed, and our marijuana is only getting better and cheaper. By a lot.
“At its height, the wholesale price of marijuana flower was about $4,000 a pound on average, which has dropped to between $1,000 and $2,800 a pound today, according to Oklahoma industry insiders.”
Now, we’re not sure who these “industry insiders” are, but given the prices I’m seeing and the precedent set in other states like Oregon, where the supply outweighs the demand, it absolutely makes sense that our cannabis prices are dropping by 50-75%. Poor Oregon. Good thing they have Idaho right next door to help prop them up.
It’s a fact: Oklahoma has the most dispensary licenses in the nation. My fellow Okies! Put your pipe, joint, or crudely constructed water bottle contraption down, and just let that sink in for a second. Us. Oklahoma. In the spirit of cannabis, whoah dude…
Marijuana Business Daily breaks it down like this:
“Under Oklahoma’s liberal licensing policy, the state has issued more than 2,000 dispensary business permits. The retailers serve nearly 240,000 patients across the state.”
Think about that! If each of us committed to a single dispensary, each shop would have only 120 customers to keep them afloat. That, my friends, is not sustainable. While not all of those licenses represent a fully functioning dispensary, it’s a good snapshot of our cannabis market as a whole.
What’s next for Oklahoma?
“It’s going to be survival of the fittest,” said Jay Czarkowski, founding partner of Canna Advisors, a Boulder, Colorado-based cannabis consulting firm.”
In the fight to survive, prices will continue to drop. Who knows how low they will go, but I can tell you this: Today, I can get four grams of quality concentrates for $100 bucks. Two years ago, that price was nearly $300. Count on The Happy Ogle to keep being right about Oklahoma cannabis trends to watch for in 2020.