Mount Vernon, Washington Experiencing a Drop in Marijuana Prices

jointAccording to recent reports, the price of marijuana is dropping significantly. When the retail industry kicked off in July of 2014, the average price for marijuana was $25 to $30 a gram, according to The Daily News in Longview. As of now, the price for a gram of marijuana has fallen to $8 – or lower.

According to Cannarex manager Damion Acosta, the initial prices were forced to drop, otherwise the industry would have to “bail”. “The producers realized things weren’t selling so they had to lower the prices,” he explained.

What caused this dramatic drop in prices? This change occurred for a number of reasons, including: a decrease in taxes, an increase in supply and a need to compete with the black market. Even though the retail market has changed its prices to compete with illicit sales, the black market continues to account for a big chunk of the marijuana industry in Washington state. In fact, according to the state Liquor and Cannabis Board, black market sales account for 28% of the $1.3 billion market.

Local store owners are also adamant that an increase in producers has had a huge impact on lowering prices for buyers at checkout. At first, producers were few and far between. Now, there are so many producers that retailers are having a hard time choosing.

According to Smuggler Brothers owner, Jeff Kraus, “Our first month, it was hard to get producers to call me back. Now I have to tell them, ‘No,’ more than I say, ‘Yes.’”

Many shop owners also believe that the drop in taxes this past summer has led to lower prices on store shelves. Previously, producers and retail shops were required to pay a 25% excise tax; this excise tax is now at 37% at the retail level. Kraus commented that, “We saw cuts on prices almost unanimously across all our producers when the tax cut went into affect. It’s a cleaner system now.”

The current atmosphere in Mount Vernon has left many wondering how these recent changes will affect the market, but one thing has not changed. Marijuana businesses are still considered to be “high risk”. If you have had problems securing the payment processing solutions you need, consider what ACH check processing with can offer your business in options. The application process takes a matter of minutes, contact us today!

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Washington State will Soon Welcome New Marijuana Dispensaries

Medical marijuana in large jarWashington State, mecca of grunge metal, Starbucks, and rainy weather, has opened up the application process for wannabe marijuana dispensaries. While Denver gets most of the talk when it comes to legalized recreational marijuana sales, Washington State brings in millions in revenue due to the grassy habit. In addition to accepting new applicants, the state has eased restrictions on the amount of room one can have to grow their plants. All of this is welcomed news, except that it will still be tough for new merchants to obtain a way to process checks.

As with all good things come something bad. With legalized marijuana sales, the “bad” happens to be the elusive ACH check processing ability. This is the easiest way to process payments, and most businesses rely on this to accept payments with ease. The lack of payment solutions can cause a business to become a “cash only” business, and this should be the absolute last resort for any business. A “cash only” business is dangerous, and one that is advertised as such brings an increased risk of robbery. And once the cash is stolen, there is little chance of recovering it.

Whether you are in Washington State or Alaska, which has yet to open its first legalized pot shop, one of the most important things you can do is find an ACH check processing source. It is imperative that you have a way to process payments. Yes, it is not easy to find a willing source, but it is one thing that can either help your business grow or topple. Since state and Federal law clashes on this area of business, it is nearly impossible to go into a bank to obtain any kind of business support, since the majority of banks are regulated by the Feds. Instead, look for industry guides and resources that can point you in the right direction. It is imperative that you accept plastic card payments, because without the ability you are at risk of losing out on business, as well as putting your business at risk.

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Washington State Joins Colorado in Marijuana Legalization

washington-state-marijuanaIf the legalization of marijuana in the state of Colorado seemed like high-profile news, it is safe to say that you have seen nothing yet. Amazingly, Washington’s first legal retail marijuana store sold over $30,000 of product – in only its first day. This completely trumps the dispensary average of Colorado’s first day of retail sales, back at the start of 2014.

Although the estimates are often debated, it is confirmed that Colorado’s first day of legal marijuana sales totalled at around $20,000 for each of the state’s first 37 retail shops, all of which sell the product itself and various paraphernalia associated with the subject. Lucky for them, the primary recipient of the first-day weed hype was Top Shelf dispensary, which is situated in Bellingham, Washington. According to the high-spirited owner of the store, John Evich, more than 1,200 eager customers purchased marijuana between the hours of 8am and 10pm. The first official legal sale in the state was served out by Top Shelf themselves, to Cale Holdsworth, a native of Kansas state.

Although the first day of legalization was record-setting for Washington, it is said that dispensaries may have no other choice but to contest with a limited supply of approved and available marijuana. Although a few dispensary owners, including Evich, were more than able to keep their customers happy due to shipments of multiple growers, other collectives unfortunately might not be able to do the same. Not only this, but it’s worth dispensary owners noting that the retail stores in Colorado have experienced significant price drops in the six months that marijuana has become legal.

Despite this, it is certainly a fact that the first day of Washington’s marijuana legalization has been absolutely monumental, and will be remembered in many years to come as the start of an era for Washington. And, hopefully, the best is yet to come.

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