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Would the price drop?
- Thread starter Gottagrow
- Start date
Price is more so dictated by supply and demand....even though it is a "black market" item. If the demand for an item increase, and the supply stays the same, then the price of it would go higher. If the supply becomes vastly larger and the demand for it stays the same, well, that would lower the price significantly. If both the supply and demand increase in a relatively equal ratio, then you can expect prices to stay marginally the same.
It would be no different than the majority of other products. There is still going to be an elite few that have access to quality dank...and the majority of people are still going to be satisfied buying mids...some will still want theirs to be as cheap as they can get it...
The simple fact that top of the line is still being sold at some med clubs for 60-80 an 1/8...to me is proof enough that price will stay the relatively the same.
dank.Frank
It would be no different than the majority of other products. There is still going to be an elite few that have access to quality dank...and the majority of people are still going to be satisfied buying mids...some will still want theirs to be as cheap as they can get it...
The simple fact that top of the line is still being sold at some med clubs for 60-80 an 1/8...to me is proof enough that price will stay the relatively the same.
dank.Frank
JustBlazed
Member
dank.frank seems to have taken economics 101 or educated himself on the topic. The price I believe would fall because it could then be grown commercially by farmers on a very large scale and the supply would exceed the demand. That is unless the government gives out stipends for people not to grow weed like they do corn.
The price would undoubtedly drop. Pre-tax wholesale cost of tobacco is about $10/lb. Marijuana would be more costly to produce but I can't imagine it would be more than $100 a pound to produce (outdoors).
Just throwing some numbers together, it could be something like this:
$6.50/oz wholesale
Tax - $0~$100/oz
Retail Profit - another $20/oz?
Total price $26.50 - $126.50/oz
BTW - thanks to the democrats bullshit "no tax cut under $250,000" line was immediately rescinded by the tobacco tax that went from about $5/pound to $30/pound. One pound = about 2 cartons
Just throwing some numbers together, it could be something like this:
$6.50/oz wholesale
Tax - $0~$100/oz
Retail Profit - another $20/oz?
Total price $26.50 - $126.50/oz
BTW - thanks to the democrats bullshit "no tax cut under $250,000" line was immediately rescinded by the tobacco tax that went from about $5/pound to $30/pound. One pound = about 2 cartons
I am not so certain that the demand for it wouldn't soar much faster than the growing community can keep up. I think there are MANY people that do not or will not smoke simply because of the illegal status. I also think there would be an increase in weekend / party usage by some if it was to become legal. It would be a hot commodity over night, and I honestly believe that those willing to grow TRUE dank are still going to be the small majority. I honestly think with growing indoors, comes a bit of quality control and consistency that is unmatched by growing outdoors. This isn't to suggest that outdoor is bad, but simply that better results are achieved indoors due to the amount of precise control that can be exerted over the environment. In this line of thought, YES, I do think that it would become more widely available...but not at the extreme quality that some will demand. There is always going to be a market for elitists and pot-snobs...and those that can or choose, will purchase the dank...regardless of the price of what would then be considered commercial quality. Look at beasties from Canada for example. Decent weed, but STILL a commercial quality product...and those that can, still choose high quality when it is available.
The market for mids will with out a doubt be expanded. I fully expect schwag to almost disappear entirely from the general market if legalized. I can see how EVENTUALLY, like all free balancing systems, the demand will curb, and the supply will peak, and the price will fall, until once again the supply is maintained at a level that doesn't exceed consumer demand.
In ALL REALITY...if the growers wanted, we could still keep prices inflated by not meeting the demand of the public...and UNDER growing. Diamonds are a perfect example of this. It isn't that diamonds are essentially that rare...it is that it is a highly controlled market...and because of this, they are expensive. If the growers wanted to control the price....keep the supply below the demand...and this is almost ALWAYS the case with truly good dank buds. Want the price for them to stay high... DON'T make them a commodity...
dank.Frank
The market for mids will with out a doubt be expanded. I fully expect schwag to almost disappear entirely from the general market if legalized. I can see how EVENTUALLY, like all free balancing systems, the demand will curb, and the supply will peak, and the price will fall, until once again the supply is maintained at a level that doesn't exceed consumer demand.
In ALL REALITY...if the growers wanted, we could still keep prices inflated by not meeting the demand of the public...and UNDER growing. Diamonds are a perfect example of this. It isn't that diamonds are essentially that rare...it is that it is a highly controlled market...and because of this, they are expensive. If the growers wanted to control the price....keep the supply below the demand...and this is almost ALWAYS the case with truly good dank buds. Want the price for them to stay high... DON'T make them a commodity...
dank.Frank
JustBlazed
Member
Commodity Merrian Websters
1: an economic good: as a: a product of agriculture or mining b: an article of commerce especially when delivered for shipment <commodities futures> c: a mass-produced unspecialized product <commodity chemicals> <commodity memory chips>
I am sure you meant well but a commodity is something that is everyday common place.(Just messing with you)
Oh the price would mos def drop big time...
Nice quote JustBlazed.
Nice quote JustBlazed.
Thanks, and noted...just a typo...
B
bongoie
reckon it would drop but get taxed proper / totally amazed it's not allready . money trees , that auld expression springs 2 mind .
I thought med club prices were kept artificially high to prevent people from buying there then selling for profit on the black market. Is that not true?
sailsinthesun
Member
I never thought of that, but it almost seems like that would have to be the case.
JustBlazed
Member
dank.frank, I'm just messing around with you. Keep up the good work people. Learn about economics, take a class, read a book, pick up a newspaper or something. It doesn't hurt to be informed about how economics works. If people knew this then our country would not be in such a big pile of steaming ish that we are in now.
In the mid 90s Dennis Peron sold mids for $100/eighth. 60-80 for top shelf sounds like the price is way down to me. Legalize it, and I open a commercial grow. I'll betcha I'm not the only one who doesn't currently participate that would grab the opportunity if presented. Supply will increase. It's been demonstrated over and over that demand won't increase much, if at all. Think it isn't so? I've just one word in response: Portugal.
Then again, you can pay hundreds of dollars for a bottle of booze. Here's a link to a 1/5 of scotch for $500: http://www.grandwinecellar.com/sku1...hnnie Walker Blue Label King George V Edition
Outdoor grass is kinda like wine if you think about it.
Need some good land to grow on, it gets better with age, endless amounts of subtleties attributed to countless amounts of strains, plenty of snobs and connisuers(sp)- And you can also find 2.50$ bottles of wine in stores 10 feet away from 75$ bottles of wine.
I think mj is gonna end up being the same thing after a while. The same people who are gonna buy a cheapo bottle of wine will buy a pack of marlboro lemonade sativa(god forbid)-meanwhile the snobs will be choking on the good locally grown shit thats 60$ 1/8th.
my 2 cents
Need some good land to grow on, it gets better with age, endless amounts of subtleties attributed to countless amounts of strains, plenty of snobs and connisuers(sp)- And you can also find 2.50$ bottles of wine in stores 10 feet away from 75$ bottles of wine.
I think mj is gonna end up being the same thing after a while. The same people who are gonna buy a cheapo bottle of wine will buy a pack of marlboro lemonade sativa(god forbid)-meanwhile the snobs will be choking on the good locally grown shit thats 60$ 1/8th.
my 2 cents
and there aren't a whole lot of people that grow excess amounts. it might seem like it reading this place but when you check their geographic locations (where possible) they're mostly spread out far & wide and most of them already have a clientele built up with little to spare. it will change when legalized and people start popping plants in their backyards but until then supply and demand rules.
Actually this all depends on the companies that get involved... It's a basic supply vs demand rule that applies here. If many companies get involved and compete the prices will drop probabily. If it's just one or two companies provideing services then the prices will skyrocket. Take note that they will be very cautious not to raise prices so high that people will go buy on the streets, but they will push it to the limit. Usually when a company corners the market the prices skyrocket. Think of Comcast or another company like that. They take control of the market, eleminate the competion with low rates then when the competition is gone the raise the rates through the roof. Also if it does become legal people need to watch out for price setting. This is when a few companies get together and form an alliance and raise the prices of goods together. Therefore eleminating in-fighting and compettion. Also these co-op of compaines may lower the price of their weed anytime a new entropenuer comes along and dosen't want to join with them. Thus putting the newly found buisness out of money very fast. Simple economic laws will apply. If weed becomes legal expect to pay about the same you already are. But hey at least it would be legal....
Richard Gozinya
Member
I think big companies would be more geared to growing massive amounts of hemp vs. top shelf stuff to get you loaded. The real $$$ will be in the industrial applications of hemp not getting us stoned. But then you will have folks that are going to do those small grows and grow top notch stuff. Based on how much work would go into growing and curing cristal weed, I don't think the price would get that cheap for your best stuff. Guys in the hollywood area have it pretty dialed in and those stores that sell for 45 an 1/8 seem pretty fair (currently).
How about this question, how cheap would you go with your weed that you grow? Would you sell your best weed for 20 an 1/8th? Plus imagine how much really crappy stuff would flood the market, more money would be made selling Floramite, fucking spider mites would be every where. Which guy got rich just transporting oil, Rockefeller?
Overnight half the people on this site could become grow consultants, wiring experts, ventilation experts, DIY experts, pesticide experts, hydroponic experts, MJ marketing experts, the real money would be in helping all the newb's that think they will get rich growing weed.
How about this question, how cheap would you go with your weed that you grow? Would you sell your best weed for 20 an 1/8th? Plus imagine how much really crappy stuff would flood the market, more money would be made selling Floramite, fucking spider mites would be every where. Which guy got rich just transporting oil, Rockefeller?
Overnight half the people on this site could become grow consultants, wiring experts, ventilation experts, DIY experts, pesticide experts, hydroponic experts, MJ marketing experts, the real money would be in helping all the newb's that think they will get rich growing weed.
I agree completely. Large-scale industrial hemp would be big business. Recreational mj would serve a much smaller segment of the population. And I think the legal mj industry would be much like the beer industry is now. You have your Anheuser-Busch's, and you have your microbreweries. Just like anything else, you would have your mass-market, mass-produced, relatively inexpensive product that would satisfy the vast majority of consumers, and you would have your small-scale, specialty producers for the connoisseurs. Whatever the market demands, someone will be there to provide it. And of course the true connoisseurs would grow their own.
