Good News for Weed Lovers – Decline in Wholesale Marijuana Prices
Back in 1995, only 25% of respondents were in the favor for the legalization of marijuana, and not even a single state approved its use. But today, in 2018, marijuana is legalized in 29 different states. Today people are growing, selling and using marijuana legally without any restriction by law.
The marijuana market is generating a great revenue because the buyers can now easily get the weed buds for their pots. To promote the cannabis industry the prices were declines by 13% in 2017 and the growers made great revenue from marijuana.
But not only this, the wholesale prices of the marijuana buds have been declined more than 13% in 2018 fall. As the marijuana industry has been expanding in the U.S. the pot prices and wholesale prices of cannabis are getting reduced. The sole purpose of this decline in the prices of wholesale cannabis products is to attract the customers so that the industry expands more.
Cannabis Benchmarks, a Denver-based independent price-reporting agency has reported that cannabis wholesale prices have been declined in 2017 and 2018 after touching $2,100 per wholesale pound in September 2015 and June 2016.
Reasons Why Wholesale Marijuana Prices Are Declining:
Tokers have been wondering why the prices of marijuana buds are declining in the market. Well, there is no solid justification for the decline in prices but we have listed 3 possible reasons for the decline in marijuana prices in this article.
Since the legalization of marijuana, the growers are cultivating marijuana buds in a large volume because there are no restrictions. Also as the marijuana business is expanding and growing these days, the number of weed cultivators has also been increased. Both of these factors have resulted in a large marijuana production. Therefore to sale, the cannabis buds to compensate its overproduction the wholesale prices for marijuana buds have been declined.
This decline in price will help the cultivators to get the good price for their production as well as they can reduce the overproduction too.
To Make a Strong Place in The Market:
Another reason why some growers are declining the wholesale marijuana prices is to create a strong position in the marijuana market. By declining the prices they can not only attract more customers but make them constant buyers of their products. Once the customers get what they need at lower prices, it would be difficult and unprofitable for the new and small marijuana suppliers to stand in the market.
Controlling the Supply and Demand:
The price decline is one of the ways to control the supply over the demand. States where weed legalization is new such as Oregon are using this technique to control the supply of cannabis in their states. They have declined the prices because they are uncertain about the buyers and demand of weed in those states so they are preventing over-supply of marijuana in their states by reducing the wholesales cannabis bud prices in those states.
Some surveys have also shown that wholesale prices of the cannabis buds are expected to be reduced even more in the future. Well, no one is certain about how much the prices of weed would be declined in the future. This might be upsetting for the suppliers but its good for the tokers to get weed at low rates.