Gone to Pot: Michigan Marijuana Prices Reach An All-Time Low
There's certainly no shortage of dispensaries throughout Michigan-- especially in our neck of the woods!
It seems as though the healthy competition between Michigan dispensaries has led to a decrease in marijuana prices and consumers are reaping the benefits.
According to the Michigan Cannabis Regulatory Agency, the average price for recreational marijuana in the state fell to $95.12 per ounce in November. This time last year consumers would've paid $100 more per ounce. Why the 50% decrease in prices this year?
Supply and Demand
Logan Stauber, co-owner of the northern Michigan dispensary The Fire Station Cannabis Co., told news outlet TV6 that one reason for the price change is the number of licenses the state has issued. Adds Stauber,
In January of 2021 we saw about 1,200 licenses and that number has now grown to roughly 1,800 throughout the state
More retailers mean more competition and therefore, more supply. Which is good news for consumers but bad news for growers, who insiders believe are those most affected by current industry conditions.
Despite a tough market for cannabis growers and record low product prices, the cannabis industry in Michigan is still thriving. Stauber told TV6,
We’ve seen about a 38% increase statewide. Last year in 2021 the state as a whole did about 1.3 billion in sales and right now, we’re on track for $2 billion in sales closing the sale.
But don't get too used to these prices! Experts expect prices to stabilize in the near future similar to what's happened in Colorado and Oregon.
Where Does the Money Go?
In early 2022 the Michigan Department of Treasury announced $150 million in marijuana tax revenue would be distributed among municipalities across the state, public schools, and a transportation fund.
If those figures were based off of 2021 sales, just imagine how much tax revenue will be distributed thanks to sales in 2022! Read more on Michigan marijuana sales and regulations here.