Since legalization, prices in Washington for marijuana have been dropping at a consistent pace.
Marijuana is known for helping patients find relief from a long list of ailments. It is also known for being a safer recreational alternative to alcohol and hard drugs. But now it may be known for cheap prices.
Retail marijuana prices are dropping in many places. With large cultivation centers and lots of market competition, there is competition to offer marijuana of moderate quality for low prices.
There are exceptions to this. As we have reported lately, prices in Nevada are rising sharply due to supply issues. Nevada residents are buying recreational marijuana in higher numbers than expected and state regulations have made it difficult for shops to restock their supply.
The tweet below includes a chart that shows just how sharp the drop has been since recreational marijuana was legalized in Washington.
— Kevin Gray (@kgraydc13) September 5, 2017
Steven Davenport of the Pardee Rand Graduate School has kept an eye on marijuana prices in Washington since recreational sales started in 2014. He feels that there is a sweet spot for the market where low prices and quality meet.
“Some consumers will prefer higher priced brands, but there will always be a market for the brand that can produce adequate quality cannabis at the cheapest cost,” he said according to the Washington Post.
Prohibition adds significant cost to producing marijuana. Without the threat of prosecution, legal producers are able to sell to dispensaries at much lower price.