What a revelation lol

gb123

Well-Known Member
Street cost for cannabis lower than legal price point, Statscan finds

Statistics Canada has published new data on the street value for cannabis showing it could cost at least 13 per cent less than the proposed legal price.

The price point will be crucial as nearly a century of prohibition ends: While some people may be willing to pay a slight markup for the quality and security of the legal product, others may opt for the cheaper, underground supply, especially if they are already used to buying it that way.

Federal Finance Minister Bill Morneau announced a week ago that the price that the provinces and federal government are proposing for legal cannabis is $10 a gram including a federal excise tax of $1 or 10 per cent, whichever is higher.

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That would make legal cannabis considerably higher than the $8.84 per gram a Statscan report released on Monday found people were willing to pay on the black market in 2015.

That study found Canada's underground cannabis trade was worth as much as $6.2-billion in 2015 – almost as much as the legal wine market. The report assumed a price range of $7.14 to $8.84 a gram to determine the market would have represented around 70 per cent to 90 per cent of the size of the $7-billion wine market in the most recent year Statscan analyzed. Meanwhile, PriceOfWeed.com, the crowdsourcing site Statscan plans to use to help it figure out how much cannabis costs on street corners, currently pegs the average gram of "high quality" dried cannabis at $7.56, based on almost 10,000 submissions over the past seven years.

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Vancouver Councillor Kerry Jang, co-chair of B.C.'s provincial-municipal committee in charge of crafting the province's cannabis rules, said the Statscan report underscores how the federal government should lower its proposed cost of $10 a gram or risk letting the underground trade continue to flourish.

"Whether [illegal cannabis] is a dollar or two [cheaper], in this day and age people will always look for the best price, so why increase the risk?" said Dr. Jang, architect of Vancouver's landmark cannabis dispensary bylaw. "Where Ottawa came up with that $10 we have no clue.

"It was a surprise, it was probably a bunch of politicians trying to figure out how much money they can make or get without actually doing the research."

Neil Boyd, head of Simon Fraser University's criminology school and a scholar of drug prohibition, said most recreational cannabis consumers are likely to pay more for this legal supply, which could offer more products than their street dealer plus an official guarantee of product safety from a federal testing regime as well as national labelling standards.

However, any added charges could make the legal supply less palatable for consumers, Mr. Boyd said.
"At some point there's a tipping point, where that tipping point is precisely I'm not sure," he said. "But I'm pretty confident that the government is not going to allow itself to get usurped by the black market – they're going to be careful about how they set the price."

Last month, B.C. Premier John Horgan warned cities they can't gouge cannabis businesses with licensing fees if the province wants to squeeze out the sizable black market once the drug becomes legal.

Spokespeople for the federal Justice Minister and Liberal MP Bill Blair, a former Toronto police chief and the Trudeau government's point man on legalizing cannabis, were unavailable for comment Monday afternoon.

Statscan has tentative plans to do four special household surveys in 2018 asking consumers of black-market cannabis about their habits. The agency told The Globe and Mail that longer-term, community studies would be a good idea, but its limited budget does not allow for them at this time.

In its new report, the agency estimated cannabis consumption in 2015 totalled 697.5 tonnes. It said the number of cannabis consumers and the volume of consumption need to be approached cautiously because there are unquantified degrees of uncertainty in the data.



 

gb123

Well-Known Member
"Neil Boyd, head of Simon Fraser University's criminology school and a scholar of drug prohibition, said most recreational cannabis consumers are likely to pay more for this legal supply, which could offer more products than their street dealer plus an official guarantee of product safety from a federal testing regime as well as national labelling standards."

this guy is awesome! keep edumacatin the masses fool... lol
 

CalyxCrusher

Well-Known Member
Typical lazy fucking government "research". One no name fucking website and called it a day huh. Pretty sure its actually more than 13% cheaper. May as well of just checked High Times' monthly high index.

I wonder how much tax payer money they pissed away on such an in depth analysis
 

The Hippy

Well-Known Member
Uh-Oh! Watch the LP stocks disintegrate. The LP's will be forced to sell it for $3g max in order for government to meet an $8 price point.
I've been saying that all along. There will be no big sales money ....just only a loss of money if they try to match the BM. WAY too many hands in the pot to make it work. lmfao.......we win again. Our culture wins by not supporting or helping the gestapo who wants our money with ZERO apology for past injustices. This grindes me the most.....a straight run at the money bolstered by goon squad mentality and proposed enforcement.
Never trudy maggot...never !!!!!!!!!!!!
I've said it over and over.....try telling any manufacturer what to sell for and it will be met with resistance. The Gov has tried to set a retail before the wholesale chain is ready.
Stores and rent...delivery...testing...returns....wages.....insurance...benneft plans.....overheads.....ya right. If they ever think they can touch the BM price wise...they are WRONG.
The only strategy to kill the BM is to goon squad it like the nazi's did. They will not eliminate it through pricing or store sales. It will take police work and millions of dollars to find every BM dealer have fun you pricks. Plus folks legally growing their own as well. Pfffft good luck trudy runway model dancer.
 

GroErr

Well-Known Member
The whole premise of "setting the price" is stupidity at its best. Let the market set the pricing, that's how it'll go eventually anyhow. It will cost much higher than <$1/gram to grow it ourselves due to the overhead of running a legit operation, security, permits, taxes, testing/QA etc. But damn if they can't make, package and sell it at a profit for $5-$7/g the black market will always be around.
 
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