Steeply Falling Prices Cause Sales to Soar in Washington

Steeply Falling Prices Cause Sales to Soar in Washington

The average cost of a single gram of flower in Washington has fallen dramatically over the past two years, from $44.43 in July 2014 to $12.95 in May 2016. These declines have been fueled by two main factors – the rapid increase in the number of cannabis producers in the state, of which there are now over 1,000, resulting in more market competition, and the increasing size of the producers, enabling them to capture more economies of scale. This decline in prices has been matched by a similarly strong growth in monthly sales, which approached $100 million, as an ever greater proportion of cannabis users transition from the illicit market into the increasingly cost-competitive legal market.