Washington State grows TOO MUCH marijuana January 10 2015, 0 Comments
In an unusual circumstance in the new world of legal marijuana, Washington State now actually has too much marijuana in stock.
As a result, the price of legal weed is dropping, and dropping fast. Wholesale prices (what the growers charge to retail stores) is half of what it was just a few months ago. Growers in fact grew as much as 10 times the amount than is actually selling in stores.
This choppiness and unpredictability between supply and demand is a mostly a reflection of a new market. Demand is really hard to predict for something still so new (and which still has a fair amount of taboo associated with it.) Growers also may have thought that demand was essentially limitless (like Apple producing as many iphones 6 as possible, knowing they'll sell whatever they can create.)
Fortunately, the oversupply won't go to waste. Kept well, marijuana can last over 6 months. Suppliers will just have a fair amount of their cash tied up in inventory until the demand catches up.