As cannabis sales totaled at $6.9 billion in 2016, it became a no brainer to many men and women who are passionate about the industry, to quit their nine to five job and take on the cannabis world. But it also widened the eyes of many investors and big businesses.
As a result of the bigger guys sticking their nose into the industry and heavily supplying the market, wholesale prices have been decreasing. The state of Washington is a prime example, as their price per gram dropped from $25 to $6 in the past two years.
Are these plummeting prices good news for consumers?
It may sound like good news, but this could ultimately bring financial uncertainty for many small business owners.
Yes, the market is heavily supplied and keeping consumers happy, but the market is also becoming oversupplied, which could leave every business with low prices and scarred margins in the near future. Small businesses in particular. But on the other hand, a big business with corporate funding can reach deeper into their wallets and continue to produce more cannabis than the market demands, while the small guys struggle to keep up.
As for the prohibition activists and passionate users, this is not what they had in mind when they envisioned ending prohibition. For twenty plus years, small business owners and activists (the pioneers) have pushed for legalization. The last thing these men and women want to see is corporate funding controlling the market.
As for the users who don't see the big deal because "Cannabis is the cheapest its ever been", think again. If cannabis becomes ruled by big businesses entirely, its only a matter of time before they raise their prices back up, dominate market share and knock out the small businesses. Corporations are notorious for that.
It's our job as consumers and activists to do the best we can to support small businesses in every field whether that be in retail, production or processing. Let it be known that the best cannabis is grown from the people who care about the future of this industry, and not only the increase they see in their profit margins.