As marijuana prices drop, dispensaries weigh price and service
Competition from more retailers and growers is driving down the price of marijuana flower — the industry’s most sold product. Some predict revenues could plateau soon and local businesses are searching for ways to keep moving forward.
Customer loyalty may become increasingly important as market forces drive down marijuana’s profitability. Clayton Mosher, a sociology professor at Washington State University Vancouver and author of a forthcoming book about marijuana policy, believes sales are heading for a plateau as demand hits the ceiling.
“We’ve had sales now for two-and-a-half years in Washington; I think the people that are going to use it have decided they are going to,” he said. “I don’t think that (new user) demographic is going to increase at all.”
Sales trends in Clark County lend credence to the theory. Revenues rose early on as marijuana first hit the shelves, but those revenues leveled off considerably in 2016. Dispensaries that have been open since the beginning saw sales peak in the latter half of 2015. Collective tax revenue for Clark County dispensaries has declined four out of the last five months.