Photo courtesy of David Downs/Leafly.
If you’ve been to your local dispensary lately, you may have noticed your favorite bud is cheaper than usual. Sure, the total balance on your receipts may still be high, but that’s usually thanks to high state and local taxes, not the flower. However, while you may be enjoying the cheaper prices, someone else is feeling the heat: farmers.
Supply and demand economics appears to be favoring consumers in California’s cannabis market. That’s because an increasing number of growers have been producing more weed than stores know what to do with.
Leafly Senior Editor David Downs talks to KCRW about it.
KCRW: This summer appears to be a lot different than last year when it comes to pricing. What’s changed?
David Downs: “There’s a lot of affordable, tested cannabis flower to smoke at lower prices, which is what legalization initially promised. That’s new and different from last year.
Last year, we were in a cannabis drought that was brought on by both COVID demand and a lack of legal supplies. … On the westside of LA, we were seeing dispensaries like the Higher Path with ounces at $140 and half ounces at $55. [We were] seeing similar price ranges at the Pottery and Herb and Med Men Venice, which gets pilloried for prices.
That’s really competitive with the illicit market. … At the lower end, legal cannabis can now provide the number one value proposition of the illicit market, which was low prices. And that’s on top of convenience, legality, testing and safety. Since sales started in 2018, we’ve been waiting for this inflection point, and the question now is whether things will continue to change.”
Published: August 20, 2021
Founder & Interim Editor of L.A. Cannabis News