UNION GAP, WA.- The price of marijuana continues to drop in retail shops across the state, so we checked in with two of the local shops in Union Gap to see how they’re adapting to the changing times.
Even though prices have dropped to an all time low across the state over the past year, local owners say their products are still flying off the shelves.
When Station 420, opened their doors in 2014 they were selling a gram for around $40.00.
“It was tough, the supply was short, we didn’t have very many options and it was expensive,” owner Adam Markus explained.
Likewise owner of the The Slow Burn, Ken Weaver, says they’ve seen popular items like oils, waxes, and edibles, known as “concentrates” drop as well, “They’ve gone from a $150.00 a gram when we opened, now to $40.00 a gram, so it’s just crazy how far those have dropped.”
Local retailers say the prices dropping is thanks to an increase in demand. For the first time since 2013 Washington state accepted applications for marijuana retail shops. That in turn has caused significant growth in the market.
“When concentrates were $150.00 a gram you know we made the same margin of that as when we are selling it at $40.00 a gram, but we’re selling a thousand times more of it at the lower price,” Weaver said.
Some shops did see a loss in profit when the the state changed their marijuana taxes from 25% to 37% last summer.
However with retail prices now similar or sometimes lower than those you’ll find on the black market the profits are back up.
“Obviously if I can supply the same product for less money it’s great for everybody,” Markus said.
Even if the prices dip further these owners say they don’t see it effecting them negatively, their goal is to stay one step ahead of the ones selling it on the street.
“I think long term we have to be an affordable alternative to the black market if we’re not we don’t have any future,” Weaver told us.
The Slow Burn says on average they’re able to take in $1.5 million a year in profits and they don’t see that slowing down anytime soon.
Likewise Station 420 has seen such a rise in sales that they’ll be expanding their store in the coming months.