When we look at pricing trends in new and mature markets, we see some patterns emerge. In markets that are in early stages of development, we usually see total sales and product assortment grow together.
We see this reflected in the Michigan cannabis market, where sales have grown to $171M from December 2019 to July 2021 and product assortment has grown by 25 times in the same time period to nearly 9,000 products.
Prices can start out high in new markets, but as supply catches up to demand and competition builds, prices begin to decline. In Michigan, for example, the average item price of cannabis products has fallen by 40% from October 2020 to 2021.
Prices can fall in more established markets too. For example, the average price of a gram of Flower in California decreased by 30% from September 2020 to 2021.
We also see patterns in discount strategies in more mature markets and newer markets. In California, discount strategies seem relatively stable with a few retail outliers. In Michigan, however, we see discount strategies shift more significantly since the market is young and in flux.
Show Notes:
Examining cannabis pricing trends & discount strategies
https://www.headset.io/industry-reports/examining-cannabis-pricing-trends-discount-strategies
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 838 The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
