Recreational cannabis retailers in Washington have been steadily slashing prices since the plant was legalised for adult consumption due to the need to meet or beat black market prices, and compete with an ever growing list of legal merchants.
According to the Washington Liquor and Cannabis Board, the average statewide price per gram of the good-good started out at around $25-$35. Now the price per gram has been reduced to around $10, which may not be good for retailers but is sure easier on the consumer’s’ wallet.
The plummeting of the price per gram also has to do with changes in Washington’s tax code regarding cannabis sales.
The original code included an equal 25 percent tax for those that produce cannabis, those that process it and for the retailers. Legislation that was passed in 2015 eliminated the three-tier tax structure and replaced it with a single 37 percent tax at the point of sale.
And rather than increase the price per gram to accommodate for the new tax structure, most retailers chose to keep the prices as they were in order to stay in line with the competition.
Hollie Hillman, a manager at the Freedom Market cannabis shop, doesn’t expect prices to drop significantly more due to the fact that some strains of licensed recreational cananbis have hit illegal street market prices, which is as low as $7 per gram.
“I don’t think it can get much lower than that,” Hillman avowed.