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Overcapacity Drives Down Marijuana Prices in Colorado


Overcapacity in dispensaries in Colorado is driving down marijuana prices. Retail prices for marijuana have dropped in the third quarter,  according to a marijuana store survey by Nicholas Colas, chief market strategist with Converge.

Colas surveyed retail outlets in Colorado and found that marijuana prices fell from $50-$70 for an eighth of an ounce to $30-$45. An ounce fell from $300-$400 to the lower end of $300 an ounce. Colas found that all of his contacts said that greater competition was the reason for the pricing pressure as more retail dispensaries and grow facilities were opened.

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