Cannabis is legal

[Agamemnon]

I wonder how much a hit in volume Terry can take. Many Terry's aren't that wealthy and likely depend on the volume they've achieved. I could see taking 20-80% of Terry's volume (and likely therefore profits) making the economics less desirable and boot a lot of folks from illegal retailing. You don't have to take ALL of Terry's business, just enough to make it unpalatable.

A lot of Terrys probably only make $20-$30/hour in the end... if you drop that to $10-$15/hour, they switch to other things... like welfare. I have no idea how much a small-time eighth dealer nets.

How could private illicit operations hope to compete with massive corporate economies of scale run by PhDs and MBAs with legit labs.

We generally don't buy beer from the guy down the street's garage, we don't buy cigarettes out of the trunk of a car, and we won't be buying weed from Terry. It's not just about price, there are several reasons why LP's are going to win.

People pay gobs of money today for convenience, we live in a culture of convenience. LP's will be convenient. Terry will never be convenient (except for those that work with a Terry and have it brought to work, bravo).

[gottabekd]

Originally Posted by Cecil Terwilliger

AGLC strike me as alcoholic gamblers more than stoners.

Yea, but I got the impression that a bunch of stores simply aren't ready to seek the final approval license from AGLC. They didn't get their renovations done, staff hired and trained, etc. So it wasn't that the AGLC was denying the interim license, the stores weren't quite ready to seek the license.

[Coach]

Originally Posted by gottabekd

Yea, but I got the impression that a bunch of stores simply aren't ready to seek the final approval license from AGLC. They didn't get their renovations done, staff hired and trained, etc. So it wasn't that the AGLC was denying the interim license, the stores weren't quite ready to seek the license.

Yeah tough to be open day 1 with a product that was technically illegal the day before.

[Kiran403]

A lot of it could be municipal holdups too. AGLC licences are only issued once they meet provincial requirement as well as municipal ones. A bunch of applications are in appeal because they either are too close to another store, too close to proximity requirements (schools etc) or have received complaints from the neighbourhoods they are setting up shop in.

[CliffFletcher]

Originally Posted by Agamemnon

People pay gobs of money today for convenience, we live in a culture of convenience. LP's will be convenient. Terry will never be convenient (except for those that work with a Terry and have it brought to work, bravo).

Dealers today deliver, and they deliver fast. The average wait for their customers is less than they wait for a pizza, and presumably they deliver when the pot store is closed. And of course, they deliver to minors. Those are the dudes keeping the black market alive in places like Colorado. They beat the legit retailers on price and on convenience.

Pot delivery services could be 'cockroaches' of marijuana legalization, experts say

...Direct delivery and online distribution in particular are likely to continue operating on the edges of the law, said Ian Dawkins, acting president of the Cannabis Commerce Association of Canada.

"They are like the cockroaches of this biosphere. You will never destroy a dude on his bicycle with a cellphone delivering weed,'' he said.

Booming California cannabis delivery businesses running afoul of law

Nearly two months after California legalized cannabis sales, the black market for marijuana continues to flourish as communities and law enforcement struggle to crack down on door-to-door couriers delivering cheaper, unregulated weed.

Only 25 percent of the cannabis consumed in the state is purchased from government-approved brick-and-mortar retailers, according to a report released this week by the Cannabis Growers Association.

Much of the rest is sold door-to-door by hundreds of unlicensed, small and independent couriers — like DoorDash delivers carnitas from your favorite taqueria.

In the Bay Area, there are about 60 unlicensed delivery services — usually, a ‘dispatcher’ on the phone and a fleet of drivers — advertising on websites like WeedMaps and Wheres Weed.com. They lack permits and insurance. It isn’t clear how many of them verify the source or safety of their cannabis. And it’s also unknown if they require customer IDs to prevent minors from buying their products. Their weed is typically cheaper than what’s sold by licensed dispensaries...

[Cecil Terwilliger]

Uhh those aren’t terry, those are well run grey market operations. MOMs are vastly different than Terry and are already putting terry out of business.

They will get cracked down on once legalization takes place or they’ll need to go legit.

Along with legalization, they are the biggest threat to Terry so they’re not relevant to his post at all.

[Cecil Terwilliger]

Last week, an official with AGLC provided a list of average wholesale prices per gram it’ll be charging retailers, including $8.95 for dried flower, $4.95 for milled flower, $9.11 per pre-rolled joint and $9.65 per oil capsule.

Another prospective Calgary cannabis retailer said he’s not so concerned about the price structure, adding there’ll be some leeway for stores to appeal to customers.

“We’re able to choose any price,” said Angus Taylor of New Leaf.

He also said wholesale prices will ultimately fall along with retail ones as the industry hits full production and supply stride.

“The economies of scale will eventually drive down the cost of goods — we ultimately hope there’s less and less confidence in the black market,” said Taylor.

https://calgaryherald.com/cannabis/c...nabis-retailer

If your local retailer is paying $9 per gram to buy their weed wholesale, then the min cost for 1/4 will be over $60 but that leaves zero profit. So what will retailers price it at? $70 seems reasonable. $80 is a bit much. At $90 they’ll have some definite issues with habitual smokers.

Hope the new leaf guy is right and prices will eventually level out.

[spetch]

Originally Posted by gottabekd

Yea, but I got the impression that a bunch of stores simply aren't ready to seek the final approval license from AGLC. They didn't get their renovations done, staff hired and trained, etc. So it wasn't that the AGLC was denying the interim license, the stores weren't quite ready to seek the license.

Ya there is a lot of incomplete/incorrect applications out there. My uncle works for AGLC and he said they are trying to get more approved but they can’t due to the large amount of bad applications.

[8sPOT]

Was an ad in the Strathmore Times yesterday for The Garden Cannabis Co. This ad says they're open for business too, though I assume not for actual pot sales yet.

So I think this 17 store thing across the province is pretty misleading.

[Northendzone]

does anyone have a friend of a friend who can comment on the current street pricing of herbs? Are the prices below more or less?

Originally Posted by Cecil Terwilliger

https://calgaryherald.com/cannabis/c...nabis-retailer

At $9 per gram wholesale, min cost for 1/4 will be over $60 but that leaves zero profit. So what will retailers price it at? $70 seems reasonable. $80 is a bit much. At $90 they’ll have some definite issues with habitual smokers.

Hope the new leaf guy is right and prices will eventually level out.

[Sliver]

$9 a jay seems steep. Better be a big cone-shaped fattie.

[TheIronMaiden]

Originally Posted by Northendzone

does anyone have a friend of a friend who can comment on the current street pricing of herbs? Are the prices below more or less?

10 bucks for a gram, 30 for an eighth (3.5 g), 60 Bucks for a quarter ounce (7 grams), 120 for a half ounce (14 grams), 240 for an ounce(28 grams) is fairly standard for central Alberta. It gets more expensive the further north you are of the further you are from the city.

[Cecil Terwilliger]

Keep in mind the prices in that article aren't consumer prices. They are the prices the retailer pays when buying off AGLC (who is the only wholesaler in AB).

So your local dispensary will be paying, at a minimum, $9/gram and $9/joint. Then they have to mark that up to make a profit when they sell to you.

[TheAlpineOracle]

Originally Posted by Kiran403

A lot of it could be municipal holdups too. AGLC licences are only issued once they meet provincial requirement as well as municipal ones. A bunch of applications are in appeal because they either are too close to another store, too close to proximity requirements (schools etc) or have received complaints from the neighbourhoods they are setting up shop in.

That’s what I’ve heard from someone directly in the know with the city. Nimby’s have filed appeals for practically every license and Calgary and they can’t be issued until those appeals are heard.

[TheIronMaiden]

Originally Posted by Cecil Terwilliger

Keep in mind the prices in that article aren't consumer prices. They are the prices the retailer pays when buying off AGLC (who is the only wholesaler in AB).

So your local dispensary will be paying, at a minimum, $9/gram and $9/joint. Then they have to mark that up to make a profit when they sell to you.

I am sure that they will make money hand over fist at that price. Still, if that is the cost, then consumers will continue to use the most cost effective option. I can imagine that very few habitual users will abandon the black market only to pay higher prices.

[Cecil Terwilliger]

Originally Posted by TheAlpineOracle

That’s what I’ve heard from someone directly in the know with the city. Nimby’s have filed appeals for practically every license and Calgary and they can’t be issued until those appeals are heard.

I don't know about practically every license but quite a few from the sounds of it. Especially in the NE (religious) and affluent areas (NIMBYS). There's also a number of appeals for stores that don't meet the requirements for distance from each other, schools etc. that are trying to get their applications approved.

[RyZ]

Originally Posted by Northendzone

does anyone have a friend of a friend who can comment on the current street pricing of herbs? Are the prices below more or less?

The going rate in the city right now is less than retailers are going to be paying before mark up for anything above minimum amounts. At higher quantities its significantly less.

As I mentioned a few pages ago some "Terrys" are going to be able to raise their prices significantly and still blow the legal market out of the water, in terms of price, at this proposed rate.

The growing/supply side of the business is going to be a gold rush at $9/gram. $9 per joint (wholesale) is a joke.

[TheIronMaiden]

Originally Posted by RyZ

The going rate in the city right now is less than retailers are going to be paying before mark up for anything above minimum amounts. At higher quantities its significantly less.

As I mentioned a few pages ago some "Terrys" are going to be able to raise their prices significantly and still blow the legal market out of the water, in terms of price, at this proposed rate.

The growing/supply side of the business is going to be a gold rush at $9/gram. $9 per joint (wholesale) is a joke.

It make me wonder if consumers can buy from the AGLC website at wholesale prices. If so they will essentially corner the market.

[Weitz]

Originally Posted by TheIronMaiden

It make me wonder if consumers can buy from the AGLC website at wholesale prices. If so they will essentially corner the market.

The same way you can buy booze from the AGLC at wholesale prices?

Sort of defeats the purpose.

[TheIronMaiden]

Originally Posted by Weitz

The same way you can buy booze from the AGLC at wholesale prices?

Sort of defeats the purpose.

So far as I understand consumers can't but mail order liquor from the AGLC, but the AGLC wants to sell weed through AlbertaCannabis.org. So its not the same as boooze. Still, Your cynicism is well founded. Its unlikely that they offer a competitive price compared to the well established blackmarket.