45,000 Pounds of Marijuana Can’t Be Sold In Washington
So what’s going on in Washington? The problem is that the basic principles of business were ignored, owners just saw the potential profits to be made, not properly researching there markets caused them millions. Supply has out Grown the Demand. Washington gave more grower licenses than retail licenses. Giving the Grower less room to actually sell their product for a profit. Washington also has not been able to establish itself as a tourist destination as of yet. Colorado move to establish itself as a new tourist spot untimely helped with sales.
Washington famers in the beginning were selling pounds for $1,700 – $2,200. In today’s market for farmers a pound sell for $700-$800. That’s not a profitable business. Some dispensary owners has decided to wait it out and try to brand there business and their products together. In hopes of gaining more market visibility. Many growing facility are quickly accumulating massive debt, while trying to grow and sell marijuana. Many investors are facing the reality of not seeing a return on there money. Many dispensers are facing foreclosures.
I don’t think that this necessarily mean the end for their local markets. They need to just wait it out. There is still potential to make money. You can’t just walk the line, also walk the width of the line. There are many different directions owner could go. Failure is a choice the choice of giving up.
What does this mean for outside investors? Outside investors have tunnel vision there able to see the potential profits from years to come. Investors are strategizing as I type. Their plan is to wait until owners are so strapped for cash, An feel as though they can’t turn their business around. That’s when investors come in and snatch up as much property as possible for pennies on the dollar. Once the market levels out investors will make back there money. Owners should hang onto their investment if anyway possible only after exhausting all resources should you contemplate selling.
So what is Washington going to do?