Are recreational marijuana prices in Denver headed sky high?

Categories: Marijuana

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Since the 2009 "green rush" boom of medical dispensaries, Denver pot smokers have enjoyed a steady decline in the price of their cannabis in both the medical and black-market economies, dropping from $50 or $60 an eighth to as low as $25. With the heavily regulated industry of legal recreational marijuana, though, it's looking like prices are climbing back up. This may be temporary, or it may be the new standard. We caught up with a few soon-to-be-open recreational shops to get the details on what shoppers can expect after the first of the year.

"We want to do something that's comparable and fair to markets outside of Colorado," says Toni Fox, owner of 3D Cannabis Center, which will be one of the first dispensaries to begin selling recreationally on January 1. "We're looking at what an eighth costs on the street in Iowa. We don't want to do any drastic increases and overprice the product with that excruciating 36 percent tax. We're going to start our pricing structure at $35 to $40 and $50 an eighth -- and that's pre-tax. It's close to what we're charging medicinally, but our medicinal prices always included tax. We're still deciding if we're going to have that 15 percent excise tax on the wholesale side as a line item on the receipt, or if we're going to just absorb that into our base price."

Fox says that the final math on 3D prices is looking to be around $50 to $65 an eighth, after taxes, which is consistent with the prices we've heard from Northern Lights, which will also be opening on January first and says its prices will average around $50 an eighth. That's about the same price that Denver Relief, which won't open its recreational shop until February, will be charging.

"Between the demand -- which will be much greater than supply -- and the additional tax burden, it would not surprise me to see eighths that go for $25 in a medical environment go for $50 in social," says Denver Relief co-owner Kayvan Khalatbari. "My guess is Denver Relief will sell social-use eighths between $50 and $60 when we are able to do so in February."

So while most tourists headed to Denver to purchase legal marijuana won't notice too much of a difference in prices here compared to what they're used to in surrounding states, home-town smokers may be driven to either continue purchasing their marijuana on the black market -- where it currently bounces between $25 and $35 an eighth -- or simply go out and apply for a medical marijuana card, the price of which will drop to $15 early next year.

"It's all supply and demand," says Fox. "Once I can produce more cannabis, our prices should go down. I don't think there's going to be a lot of wholesale available on the retail side for a few months, and we can't cultivate our retail plants until January 1. So I can transfer my medical grow over, but that's only roughly 1200 plants. After the 1st, I can grow 3600, and then the prices will definitely go down."


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166 comments
CO64.com
CO64.com

Getting it in!! Hey CO we need more fb fans. Like CO64.com, a marijuana services website created by Herban Wellness Inc.

Amy Mondra
Amy Mondra

Well for other economical reasons business is good for the store owners... low profit is not. Can be spent and moved through out the economy. Your high.. you got what you wanted..now get get to work and make it happen..wages high too

Nathaniel C Marshall
Nathaniel C Marshall

marijuana dealers, growers activists and promoters should be considered to be narco terrorists and shot by the DEA! nasty uneducated scum!

Dominick Black
Dominick Black

Don't like the price? Then go grow your own. Stop your whining!

Randy Montano
Randy Montano

Already have when you add 30% at the end...I'll suck with the guy around the corner!

Jack Baker
Jack Baker

If you do not want to discuss the topic then why are you wasting your time here? Duh!

Tim Tindle
Tim Tindle

Not if you just get it from a guy you know, like GOD intended.

Johnny Sweeten
Johnny Sweeten

Exactly true. Greed of politicians. It's out of control. Just gonna grow my own or go for medical card or the black market. Thanks for nothing govt cronies

Mike Jeffries
Mike Jeffries

There is a simple fix to this... bust up the monopoly that dispensaries have on the new recreational market and let people who don't already own a medical dispensary get in on it.

Pete Copeland
Pete Copeland

Tourists. Anyone who smokes dope and lives in Denver either grows or know a grower.

Cooper Watts
Cooper Watts

Demand will eventually fizzle out and competition will become the driving force in pricing. Just like what happened with MMJ.

Melissa Rabe
Melissa Rabe

Some people have never purchased marijuana and a store is their only avenue. The prices probably won't go sky high unless the demand outweighs the supply. At that point, why don't some of the street growers become a legit business. Add jobs for your friends and families.

Dean Lane
Dean Lane

supply will catch up with demand and the price will level out.

Steve Trachsel
Steve Trachsel

Check out the community college nazi, where did u go Harvard ? Sounds like it u arrogant prick

Christina Dior
Christina Dior

Jason, I think what he meant by "dumb [ass] white people" was just that. 88% of Colorado's population in 2012 is white so with this new law being passed causing price inflation, there will probably be a majority of unknowing white people paying the high prices because they don't know better. Maybe they never were typical pot smokers, they're buying into the fad of legal weed or they have the means & don't care about high prices. Your argument is invalid and you just seem to be looking for a fight. Chill out.

Jeremy Evans
Jeremy Evans

Top shelf $35 1/8, that's where we should be and have been, around $40, for years.

Rob Benson
Rob Benson

It's the law of supply and demand. As the 'newness' of it fades away, demand will decrease, while more shops will open to create more competition. It seems likely that the prices will level out lower than they are now. Right now, demand is high and supply is low, causing the higher prices.

Jason Joyce
Jason Joyce

Well, let's examine: He says, "Only dumb [ass] white people would pay that," and then continues on to say legalization is hype, cusses some more, says some crap about other drugs (to which he seems knowledgeable). It's pretty blatant, and I'm going to just assume the blame falls on your community-college comprehension level. Also, if you want to argue it some more, just imagine if he said "dumb ass mexican people." Seems pretty obvious now, doesn't it?

Zach Sheesh
Zach Sheesh

I think the "underground" market will just raise thier prices a tad below store prices eventually and the argument will be moot. Might as well have a superior selection *shrug* and stay legal.

Justin Baca James
Justin Baca James

No, trust me dude, I know. Particularly people with enough disposable income to do so.

Moonie Kim
Moonie Kim

"The first step we took was shaky and really flawed, so obviously I should show my disdain for getting what I want by saying I never wanted it in the first place." - Everyone in response to this thread. Seriously? Progress happens in steps, that's why we have cars and not teleportation pods. If you don't like it, you change it, and then change it, and then do it again, you don't cry like a baby because it isn't instantly right.

Steve Trachsel
Steve Trachsel

It wasn't justin. I'm half white. I just meant that some people don't mind getting taken advantage of.

Steve Holmberg
Steve Holmberg

Already double the price of the black market. Who would stand in line to pay double the market price?!

Evan DeliFi
Evan DeliFi

exactrly, the state has hundreds of pending applications for growers and distributors, it's going to get much better, I wouldn't be surprised if the price starts dropping even within 3 months, and hopefully will be fully leveled off in 6 months to a year. It's the nature of competitive business that it will just not stay this high when it is possible to profit selling it much cheaper.

Doug Hayduk
Doug Hayduk

how are sales of black lights and black light posters!!! hahaha

Chad Hill
Chad Hill

Purpose of legalizing marijuana is so that people don't have to go to corner dealers. More stores need to open and prices need to come down and be competitive. Aside from greed, there is no reason why retail prices can't be comparable to medical prices. If I had known legalization would double prices, id have just gotten a red card and not voted for retail legalization.

Colton J Kuddes
Colton J Kuddes

So why wait in line for hours and pay $60 an eigth. Pissy dribble i tell u

Bradley Crable
Bradley Crable

Yup to hell with the shop prices....I can get the homie prices and get better stuff.

Justin Baca James
Justin Baca James

I didn't read it as a racism thing. You probably stopped reading it at that and commented.

Maggie May
Maggie May

The D's going legal were not allowed to plant a crop for rec sales until 1/1/14, they're skimming 30% of their medical supply, which they have to grow at least 70% of. When the rec harvests start rolling in, the prices and purchase restrictions will level off. I'm keeping my red card, it pays for itself in a month, and your selection is much better.

Steve Trachsel
Steve Trachsel

Always have always will streets never did me wrong beazy.

Beazy Tme
Beazy Tme

At those prices in sticking to the streets

Jason Joyce
Jason Joyce

Glad to see racism is alive and well (and class).

dgmoptics
dgmoptics

Plus the grow your own personal stash provision. That was a very good thing about the Colorado law, and should be the model for all states moving towards legalization.

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