2023 Michigan Marijuana Prices At Record Low As Prices Drop Nearly 50%
If you partake in Michigan recreational marijuana, it's a buyer's market as high supplies and more dispensaries opening up have driven prices down nearly 50%.
Marijuana Is Similar to Oil, Supply, and Demand Dictate the Price
We have all felt the effect of the price of a barrel of oil, when the price is high so is our gas. Unlike other products, when oil goes up, it causes more than gas prices to go up, basically, every product made that is hauled by boat, plane, truck, or train also goes up.
Marijuana is a little different than oil and other products since its financial source comes from people's entertainment budget. Plus, when its prices go up or down the cost of recreational marijuana doesn't affect the prices of products outside its industry.
It has taken a while for the Michigan marijuana business to get stable with grow facilities and dispensaries and that is probably why the price of the products was similar to the original street value when it was first legalized. Now that the business has settled and the newness has worn off the consumers, supplies are up and prices are falling.
The Price of Michigan Recreational Marijuana Has Dropped Nearly 50% in 2023
It finally has happened, the price of Michigan recreational marijuana has gone down drastically now that supplies are at an all-time high, no pun intended.
According to WOOD, the average cost of an ounce of recreational marijuana was around $152 in January 2022. The average price for 2023 is $80, so it's a good time to stock up.
Will Dispenaries Be Affected By the Drop in Price Because of Supply Overload?
There is a huge supply of recreational marijuana in Michigan simply because there are as many grow facilities if not more than dispensaries. The price drop really only affected the larger dispensaries, you know the ones that were trying to be the McDonald's and Budweiser's of the industry. The larger companies that thought the industry would grow at a fast rate are taking a hit but were already taking a hit (once again, no pun intended) because they misjudged how fast the industry will grow. The good news is, the one-off smaller dispensaries will just continue to grow as will the industry itself. There have to be some ebbs and flows because this industry is still in the beginning stages of its future.