Takeaway: Marijuana is one of the most widely used substances in the United States. More than 22 million Americans use marijuana every month, according to the federal government. Knowing the cost of marijuana thus becomes exciting as well as vital. For sure, you must be aware of the price you pay to the marijuana dispensary next time. Today we’re going to look for the factors from legalization to taxation and quality to the black market, how each factor contributes to the cost-effectiveness of buying marijuana.
Understanding the price of marijuana is of the essence, considering how popular it has become. Marijuana is one of the most popularly used substances in the United States. According to estimates put forward by the federal government, more than 22 million Americans are using cannabis every month.
The cannabis legalization is increasing across many states of the US. We are going to be looking into how the price of cannabis varies across the different states in the US.
We will also consider the effect of legalization as well as other factors that affect the price and the ability of users to buy marijuana.
Factors That Impact The Price Of Marijuana
Legalization is one of the most significant factors affecting and determining the cost of buying marijuana. For instance, if you are living in Colorado, you won’t have a problem finding cheap and affordable cannabis. You can easily buy eight buds for just $23+, which include tax. Well, prices do vary, but the reason for such an unbelievable rate is because marijuana is legal in Colorado. And also the competition among dispensaries creates favorable prices for the increasing numbers of consumers. However, some dispensaries sell as high as $50-$60 for an eight, especially in areas where the competition is less.
But assuming you reside in a location where the consumption of marijuana is illegal, you will never find cannabis at such cheap rates. The price of cannabis sold in the streets in places where consumption is illegal is usually on the high side since the sellers incorporate the risk of being caught by authorities into their products.
Quality Of Product
The quality of marijuana is another factor that will impact the price you will pay for it. The cost of medical marijuana/cost of marijuana that supports the treatment of ailments are usually on the high side because they always contain the best quality. Whereas, some recreational marijuana, especially those sold in the street where it is illegal, is not usually of the best quality of cannabis.
Besides, we have different grades and strains of marijuana. The higher or lower they contain CBD or THC, and pleasing aroma, the higher or lower the price you will pay.
High-quality marijuana can go as high as $80+ per gram, and you get to pay more if you are snobby about your stuff.
On the other hand, you can also find low-grade cannabis at cheap rates. Some sellers will have strains that cost $5 for a gram, including discounts for people buying weight.
Like alcohol and liquor, taxes can push up comparatively low prices to higher ones automatically.
Each of the states in the US operates different markets and varying tax levels on pot stocks. So, depending on where you reside, the cost of buying your cannabis can range along with the tax rates the authorities impose on it.
Suppose you are buying Washington where a 37% retail or sales tax is in force, you will end up paying for such an amount in your total cost of purchase. Some shop owners factor in the tax cost into their selling price to mitigate the effect at the register.
In Colorado, the sales tax and retail tax for medical marijuana is 2.9% and 10% for special sales tax on retail marijuana. Oregon operates a 25% sales tax, and all of these will determine the price you will pay for your cannabis.
The Black Market
Operators in the black market also can impact the price of cannabis, especially for recreation in places where it is legal.
Initially, it is through the black market that most consumers buy their marijuana before legalization set it. Thus, operators can easily cut down the prices of legal cannabis by selling at much lower rates to keep their traditional clients or to attract more customers.
Demand and Supply via Location
The rate of consumption and supply of marijuana and the location you live or buy your stuff also affect the overall price.
Places like downtown San Francisco, Seattle, Portland, or Los Angeles are expensive locations where the demand and supply are high. If you buy in any of these places, you will most probably have to pay more. However, you might still find some shops eager to sell off at a discount due to a high supply rate.
Also, if the area you are is laden with many shops, the prices will be affected as well. But if there is a queue in front of your city’s cannabis shop, be ready to pay more because they will, for sure, increase the price.
The Cost Of Buying Cannabis
On average, the price of marijuana varies from state to state, and from city to city in the US. In the streets of America, the value of cannabis is gauged majorly by its legal status.
For instance, in the state of Indiana, the average cost for one ounce of legal marijuana is $285. The same holds for Nevada. Comparatively, the West Coast and Southeast has lower prices, compared to the East Coast and Central North.
Oregon has the lowest street price (30% below the national average) in the US. Washing has 27% below the national average ($345 per ounce). The cost of medical marijuana/cost of marijuana in Colorado (Denver $233 per ounce) and California (Los Angeles $284 per ounce) is approximately 23% below-average price.
The states that have the highest cost of buying marijuana (that is, the price is higher than the national average) include South Dakota – 22% more and North Dakota—26% more. Vermont also has a relatively high street value put at 17% higher.
Other major cities in the US where the cost of marijuana varies per ounce include;
- Miami — $250,
- San Francisco — $272,
- New York — $344,
- Seattle — $212, and
- Chicago — $300.
Price Per Weed Size
Marijuana is sold differently based on their size compositions.
A gram of marijuana represents the smallest amount/quantity you can buy. In the US, the average cost for one gram of cannabis will approximately cost you $15 to $20. The street cost can range from $40 to $70, and upward, depending on the quality for 3.5 grams of weed.
A quarter of cannabis refers to 7 grams of weed, and the approximate street price is $80 – $120.
One ounce of cannabis equals 28 grams of weed, and the street cost ranges $250 – $350.
If you are buying half of that (14 grams), you will get a bulk discount since the price tag ranges about $140 – $180. That discount also applies to a full ounce.
The cost of marijuana varies from place to place in the US. The more you understand the factors that influence its price, the better you are in buying marijuana at the right price. Remember that no matter the cost or price of cannabis, you must use it according to legality, and according to the prescription given. Do that, and you would be happy with your stuff.