lets talk marijuana economics

I have a feeling there will be some serious money to be made. I was just reading earlier tonight that many of the stores are already sold out of product or likely will be in the next few days because of demand. Individual store demand may shrink as more stores open up, but I also think overall demand will increase. There are likely a good number of people who are waiting a little while to buy just to be sure they aren't going to get busted.

I also read about a woman who owns a limo and she started a tour that is similar to wine tours only she will take you to different week stores. She drives you around to the different stores, lets you go in and shop and then drives you home. She is booked solid every day for the next two months.

Between the actual stores, growers and suppliers of various products for the stores as well as side businesses that support the industry I think we are going to see a lot of businesses created and thriving in that state and likely Washington when it comes online.

If things work well in those states I think it is only a matter of time until more states come on board hoping to cash in on the tax money raised by week sales.

The Green Rush is on...



ADG

i wonder about the possibility of legal pot being more expensive than illegal pot due to restrictions in legal supply. i dont know how the pot stores are regulated though. just that if demand is gonna be a gold rush, how does enough legal supply get made?

Colorado just lost 85 million a year worth income due to their idiotic new gun laws. I wonder if the money generated by marijuana sales will make up for it?

In one hand, they are saying "Federal laws aren't strong enough to protect our citizens."

In the other hand they say "Federal laws are too strict so we're going to ignore them and sell drugs."

I think the supply is low because commercial growing for retail sales was illegal until 1/1/14. Stores are currently selling their MMJ suppy.

The prices will definitely drop after October when new regulations go into effect. Those without existing MMJ stores will be able to open retail shops or grow and sell wholesale.

Anyway, you have to live in CO for 2 years before they'll give you any cannabis license.


http://www.denverpost.com/marijuana/...ons?source=pkg

I just heard on the new that New York state approved medical marijuana!!!
And yes there is money in it.

In the business

Before when Colorado only had medical pot, I read an article about the licensed growers. The background check alone was a nightmare. Sounded like getting cleared to be an FBI agent would be easier. Growers were required to have their grow houses fully camera-ed up. The bookkeeping was impossible. It sounded like the state expected each plant to yield exactly the same amount, so if you were short, you were in serious trouble.

Article made it sound like one long headache.

Eventually more states will see how profitable it will be and jump on board.getting quality growers to get established seems to be the issue.you need a massive network

You also have close to $50,000 in state and city licensing fees, the IRS will not allow any write offs because its still an illegal activity under Federal law, and it is extremely difficult to find a bank that will allow you to bank with them so most are stuck accepting only cash.

Here's a list of the fees just for the state:

http://www.colorado.gov/cs/Satellite...me=CBONWrapper

yeah. The supply side is gonna be where all the problems are. Demand is the easy part.

Marijuana is healthier for you than cigarettes. But both will still kill you with cancer. Human beings just weren't meant to breath in smoke. Our bodies and especially our lungs function best when breathing in clean air.

Among the other nice benefits of vaping, is that your supply lasts longer, and you can save your leftover vape material and use it to make delicious and potent edibles (some cannabinoids are still present after vaping).



ADG

There was a guy on Reddit the other day who runs a pot store in Denver. He did an AMA and was talking about some of the crazy things you have to go through. Every step of the operation has to be on video. You harvest the pot and have to put it in containers that are labeled and sealed with a special coded device. When you then move it to another room to sort it and grade it you have to put it in a different container and seal it with a different device. You repeat that step again for getting it ready for retail and then again for putting it out for sale. He said the number of dumb, redundant steps are just insane.

At the moment it is. There were a few people on Reddit over the last few days that have purchased it from the stores, but also had bought it through illegal means in the past. One guy said what would have cost him $25 from a dealer now costs about $40 from the store, but he is ready and willing to the pay the extra to be legal and not have to deal with scumbag dealers.

There were also stories that high demand has sent prices through the roof.

The prices should come down as supply increases. Supposedly there are only about 35 stores that are through the licensing process and are open for business, but there are over 150 more that are still in the licensing process. As those stores (many of which are growers as well) come online the supply will increase.