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Colorado wholesale marijuana prices tumbled in 2016

#1

Average asking price dropped 38% in the recreational market and 24% in the medical market.

Anybody experience the effects of this?

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#2

When you think about it from a higher-level, cannabis is just a commodity like cucumbers, tomatoes, or tobacco. Like any other commodity, the price will drop as producers become more efficient.

Going into a market that is getting more competitive there are directions a producer can drive their business:

Focus on Branding
Making your flower have a name and brand that people can relate to and search out for when they want consistency and quality.

Focus on Cost Reduction
Put time and energy into technologies that most other growers do not have in order to produce at a lower cost than the competition.

Or, if you’re really smart, doing a combination of both well should lead to the greatest market success. This, to me, is the formula for those that will have many profitable years ahead of them.

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