Washington Cannabis Sales Soar 40% On 4/20 Holiday

WASHINGTON: The April 4th “420” celebrations in Washington ignited retail sales yesterday across the state, according to data compiled by Seattle-based TetraTrak and published on its new MJTicker.com website.

April 20 DataThe unofficial stoner holiday saw many I-502 licensed pot shops offering special sales and promotions, which drove consumption of flower, edibles and concentrates, the business intelligence firm reports.  4/20 brought good news for both retailers and customers according to TetraTrak’s CEO Brian Yauger.   Data published on his mjticker.com shows that a normal Wednesday would usually generate daily retail sales of just shy of $1.4 million; however projected sales for Wednesday April 20th, 2016 were just over $2.7 million, an increase of almost 40% of sales the day before.

Customers benefited as well, with recreational cannabis consumers enjoying lower prices.  On average recreational consumers paid around $9.10 a gram out the door price last month, (approx. $6.65 pre excise tax).  After 4/20 discounts and specials were factored in, holiday customers spent mid $7 out the door ($5.75 pre tax).

The Wink In Weed: Evolving To Better Serve The Marijuana Marketplace

By David Rheins

Businesses are living organisms that follow a natural lifecycle. From conception as an idea in the mind of the entrepreneur, through each phase of development, the rough edges of each business are honed, shaped and sharpened by market realities. We learn and evolve as we grow: adding employees, encountering and overcoming competitive challenges, exploring opportunities, and servicing our customers. The marketplace is unambiguous about what it wants — voting with money and mindshare – and in that way influences the trajectory of every business participant.

The idea for the creation of the Marijuana Business Association came back in early 2012, before recreational marijuana was legal in either Washington or Colorado. We saw that there was a tremendous support for creating a legitimate cannabis industry among would-be licensees and consumers, but practically no institutional support or infrastructure to help them.  We built our core services in direct response to the common needs and concerns voiced from the literally hundreds of activists, dispensaries, growers, topical-makers, and entrepreneurs we spoke with as we were refining our business plan.

Blue Line Protection Group Inc. said it's opening a new 12,000-square-foot facility in Denver that will be able to house its armored vehicles, count companies' cash, and store cash in vaults. It's scheduled to open in the first quarter of next year, the company said.

Getting and staying informed is one of the biggest challenges for our business members — licensed growers, processors and retailers, and the many ancillary business professionals who support them.  State regulations are dynamic, and ever-changing. Most first generation cannabis businesses are ill-informed, and under resourced.  They have an ongoing need for reliable information about getting licensed and staying compliant, and the technical challenges of their new profession as a grower, or processor or retailer.

The Marijuana Business Association was created to provide participants in the newly legal cannabis industry with three core values: Reliable Business Intelligence, Professional Community and Commercial Opportunity.   Three years ago, MJBA began publishing MJHeadlineNews on Facebook as a social forum for aggregating the day’s most important cannabis news from both the mainstream media and the pot press.  The site immediately generated tremendous response, and attracting a national audience. Today the MJHeadlineNews page boasts 160,000 Likes with robust community engagement.

"Forcing businessmen and businesswomen who are operating legally under Oregon state law to shuttle around gym bags full of cash is an invitation to crime and malfeasance," said Sen. Jeff Merkley, D-Ore. "It's time to let banks serve these legal businesses without fearing devastating reprisals from the federal government."

Increasingly we’ve seen the mission of our MJNewsNetwork.com as not only disseminating the news from other sources, but also the creation of our own original content.  We’ve now published hundreds of original videos from MJBA events and other industry happenings on our Marijuana Channel One on YouTube. And are in the process of building out our suite of web sites, professional educational programming and publications to deliver even more value.

MJBA Meetups have become a reliable monthly occasion where cannabis professionals can share news, and engage in professional networking in an ideal environment for establishing one’s professional and personal brands. We’ve grown, from monthly meetings in Seattle, to supporting regular MJBA meetups in Spokane, Bellingham, Tacoma, Portland, Denver and New York. Thousands of industry professionals have attended our job fairs, vendor fairs and professional education seminars, and tens of thousands more have watched the 300 original videos we’ve captured from MJBA and other cannabis industry trade events.

As the needs of the marketplace have evolved over the past three years, MJBA has evolved our offerings to map to the changing needs of our membership – partnering with leading business intelligence firm TetraTrak/Front Runner to host Professional Education Seminars for producers, processors and retailers, and hosting business boot camps with NWMJ Law that provide members with access to leading attorneys, CPAs and other business experts.

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Two years ago, we launched the MJBA Women’s Alliance to provide a forum for cannabis businesswomen to build their personal and professional lives.  More than 100 women-owned or operated cannabis businesses have joined in the MJBA Women’s Alliance, participating in our many a Seminars, VIP Speaker Luncheons and Charitable Events. This Spring we decided that the Women’s Alliance had achieved enough scale and momentum to sustain it, and so we have spun it off as a separate new entity: The Cannabis Women’s Alliance — a social purpose corporation with Morgan acting as CEO and Roxanne Taylor as COO.

Team MJBA

MJBA Women’s Alliance

It does my heart proud to see this project take flight on its own. As a parent of a recent High School graduate, I feel the same familiar mix of pride at achieving the significant milestone, and sadness that this precious first chapter of our organizational is ending.

With California, Nevada, Arizona and a dozen or so more States voting for marijuana legalization in November, 2016 represents an inflection point for the legal cannabis industry. Our grand experiment has met with enthusiastic response from eager consumers, and a begrudging realization among politicians that end of prohibition is inevitable so they might as well have a part in crafting what comes next.  I remain excited about what comes next for the industry and the MJBA.

Stay tuned to this space…

MJBA Portland Hosts “Game On: The Business of Sports and Cannabis” Panel 3/2/16

OREGON: At last month’s Cannabis Collaborative Conference in Portland, NBA All-Star Cliff Robinson announced the creation of his cannabis brand, “Uncle Spliffy.”  The announcement garnered a tremendous among of media attention, and served to highlight the many intersections between sports and cannabis.

On Wednesday, March 2nd, 6-8:30PM at On Deck Sports Bar in Portland, Oregon, the Marijuana Business Association (MJBA) will host a panel discussion, “Game On: The Business of Sports and Cannabis.”  Sponsored by CannaGuard Security,  the professional education event will explore the many business opportunities that are manifesting around the intersection of sports and cannabis, including celebrity endorsements; cannabis as a performance enhancement; cannabis as part of a natural, healthy lifestyle; and medical marijuana as sports medicine.

NBA All-Star Cliff Robinson will kick off “Game On: The Business of Sports and Cannabis”  by debuting his “Uncle Spliffy” cannabis brand. Then MJBA Founder David Rheins will moderate a VIP Panel discussion featuring Uncle Spliffy’s Linda MillerMatt Enos, Fore Twenty Golf, Marc Belsher, Silverback Advisory Group; and College football coach turned cannabis technologist Brian Yauger, Front Runner as we discuss exciting business opportunities that are manifesting at the intersection of sports and cannabis.

MJBA Professional Education Seminars are well known for bringing together top players in from the cannabis industry, for the sharing of reliable, actionable business intelligence.

 

MJBA Year in Review: 2015

By David Rheins

It is the week between Christmas and New Years, and the end of another whirlwind year for those of us on the front lines of legal cannabis.  Our fledgling industry has grown rapidly over its first two years: hundreds of new companies, thousands of new jobs and hundreds of millions in new tax revenues have been created in “the fastest growing industry in America.” 

Team MJBA

Team MJBA

That growth has brought with it new challenges for business pioneers ballsy enough to be part of the first wave.  Financial concerns weigh heaviest, as lack of access to commercial capital is literally starving our industry and its players.  You can see it everywhere – retailers unable to stock sufficient inventory, producer/processors who can’t invest in the proper organization, branding or marketing.  Almost everyone in the industry wears too hats and juggles too many balls, all the result of lack of resources.

For too many canna-businesses, there is more opportunity than bandwidth; more projects than people. More regulations and machinations than most managers can keep up with, and so the result here in Washington State most of the businesses we touch are ending this year feeling exhausted and overwhelmed. Profit remains elusive, and when it is generated, federal tax law makes it hard to keep. The so-called Green Rush is not yet minting many Pot Barons.

IFP presents at MJBA Denver

IFP presents at MJBA Denver

Banking. Taxation. Pesticides. Testing. Technology. Compliance. As the industry moves from start up to ramp up mode, the needs of MJBA members are evolving. To better serve those needs, MJBA is expanding and refining our member benefits for 2016.  Here is a bit of what we’ve got planned for the new year:

Information. Community. Opportunity.  The Marijuana Business Association will continue to deliver on our mission: to serve as the leading provider of reliable business intelligence, professional community, and credible opportunity for participants in legal cannabis.  Nominated again for the second year in a row as Dope Magazine’s Cannabis Association of the Year, we have enhanced the value of MJBA membership, while keeping our fees reasonable and our programs accessible. Business membership starts at just $250.

MJBA Women's Alliance Recruitment Poster by Michael Guttsen

MJBA Women’s Alliance Recruitment Poster by Michael Guttsen

MJBA Meetups: We will continue to host regular community-building MJBA Meetups in 2016 across Washington (Bellingham, Seattle, South Sound, Spokane) Oregon, Colorado and New York (we hosted more than 60 Meetups in 2015).  We are tweaking the format for MJBA Meetups in 2016 to provide more in-depth and specialized presentations, seminars and community networking.  MJBA Meetups in 2016 will be members-only events (members have guest privileges), with a small Meetup Fee: $10.  Limited Sponsorship and Vending opportunities are available, and essential for sustaining our grassroots networking efforts. Contact MJBA President Morgan for sponsorship opportunities: morgan@mjba.net.

TwiceBakedinWA speaks to an audience of cannabis entrepreneurs at Portland MJBA Meetup.

TwiceBakedinWA speaks to an audience of cannabis entrepreneurs at Portland MJBA Meetup.

MJBA/Front Runner Seminars:  The best in marketplace data and business intelligence, MJBA Professional Seminars begin with a deep dive into the numbers, courtesy our MJ Research partner Front Runner, powered by TetraTrak.  MJBA and Front Runner enhance the official marketplace data with business intelligence and original insights from industry leaders.  These insights are then disseminated via our MJBA Producer, Processor, Retailer and VIP Panels, featured presentations, and white papers.

Industry Thought Leaders Speak at MJBA/Front Runner Seminars

Industry Thought Leaders Speak at MJBA/Front Runner Seminars

The legal cannabis marketplace has evolved well beyond the bud, and today Edibles, Topicals, Concentrates and Oils represent the fastest-growing segments for Washington’s legal cannabis industry. Our first MJBA Professional Seminar of 2016, “Striking Oil: Concentrates, Edibles and Topicals,” will take place on January 21st, 1-6PM, at the Red Lion in Tacoma, WA, and focus on the non-flower cannabis segment.  Reserve your spot today: https://www.eventbrite.com/e/striking-oil-the-business-of-edibles-topicals-and-concentrates-tickets-20114229201?

Edibles, Topicals and Concentrates are fastest growing segments in WA

Edibles, Topicals and Concentrates are fastest growing segments in WA

MJBA/Canna-Ventures Marketing Course:  Brand building and marketing will be key for those companies looking to create differentiation in an increasingly commoditized marketplace.  MJBA has teamed up with CannaVentures to present a series of interactive branding workshops. The first one will take place on February 11th, 2016.  A limited number of canna-marketers will first complete an interactive tool, results from which will be used to create tailored materials for the brand workshop.

Marijuana Channel One: Our MJChannel One in YouTube s home to our original video content. Wink in Weed, TwicebakedinWA, HigherGroundTV, live MJ Events, canna-business interviews and more.  Subscribe FREE:

[youtube http://www.youtube.com/watch?v=CDF8neLZdOw&w=560&h=315]

In the coming days, we’ll be announcing some big news, so please stay tuned.  Here are some hints at what’s coming down the pike:

MJBA Women’s Alliance:  Featured in major press outlets like Newsweek, National Geographic, and Marijuana Ventures, The MJBA Women’s Alliance is spinning out as its own organization, with separate membership program and its own proprietary APP.  Stay tuned for details.

MJBA Women's Alliance  featured in Nat Geo

MJBA Women’s Alliance featured in Nat Geo

MJBA.net: We’re busy working on our new Member and Network portal, which will put key industry information, resources and contacts at your fingertip. Watch for our re-launch in Q1.

Striking Oil: The Business of Edibles, Topicals and Concentrates Is Jan 21st In Tacoma, WA

The Marijuana Business Association and Front Runnerpowered by TetraTrak, have announced their first Professional Seminar of 2016: “Striking Oil: The Business of Concentrates, Edibles, and Topicals.”

The half-day MJBA Professional Seminar takes place on Thursday, January 21st, 2016,1PM-6PM, at the Red Lion Hotel in Tacoma, WA. Hosted by The Marijuana Business Association and business intelligence firm Front Runner, “Striking Oil” will provide I-502 Producers, Processors, Retailers, and industry professionals with an in-depth look at Washington’s emerging marketplace for cannabis concentrates, oils, edibles and topicals.

The legal cannabis marketplace has evolved well beyond the bud, and today Edibles, Topicals, Concentrates and Oils represent the fastest-growing segments for Washington’s legal cannabis industry.  MJBA and Front Runner will kick off the afternoon with a detailed parsing of the LCB sales numbers to date, with forward-looking analysis from Front Runner CEO Brian Yauger.

CannaSol Farms founder Jeremy Moberg will deliver the keynote address, providing his prospective as one of the state’s leading Producer/Processors, and an outspoken advocate for naturally-grown cannabis. He will focus his remarks on the needs for Washington producer/processors to self-regulate.

Exciting new cannabis-infused products and concentrates bring with them a host of new business challenges for our emerging industry, including how to create best practices and common standards for Contaminants/PesticidesDosing and Packaging, and Lab Testing/Quality Assurance.  To provide their insights into these pressing issues and others, MJBA has assembled subject matter experts from Washington’s top cannabis companies to serve as our VIP Panelists.

Leading subject matter experts from Db3 (Zoots) , Mirth Provisions (Legal) , Eden Labs, Cannabis Basics, Avitas, Kush Creams, Mary’s Medicinals, The Goodship, Ethos Extracts, Robotanical, Spot, Integrity Labs, Landrace Labs, Dama, Amoebic Extracts, (and many others) will lead discussions on Edibles; Topicals, Concentrates and Lab Standards.

Industry Thought Leaders Speak at MJBA/Front Runner Seminars

Industry Thought Leaders Speak at MJBA/Front Runner Seminars

Tickets are $99 in advance/$125 Day of Show. MJBA Members and Front Runner Subscribers receive special discount!

Reserve your tickets here:  https://www.eventbrite.com/e/striking-oil-the-business-of-edibles-topicals-and-concentrates-tickets-20114229201?

“Striking Oil” VIP Sponsors include Robotanical, Eden Labs, Cannabis Basics, PayQwick, Avitas and Great Pacific Packaging. .

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Everyone uses cash because banks, which are federally regulated, aren't keen on the idea of getting into business in an industry that is still federally illegal.

Avitas_Logo (1)

Great Pacific Packaging Vector Logo Horizontal-01

 

The 2015 MJBA/Front Runner Washington Marijuana Producer/Processor Report

By Brian Yauger
Front Runner

WASHINGTON: During its first 15 months of legalization, we have seen sales of recreational marijuana in Washington State grow at an astounding rate of 13% a month. The number of recreational customers has topped 50,000 a day, fueled by a steady drop in retail prices.

The number of both new retail shops and new producers and processors licensees grows weekly. And it is notable that unlike other industries, Washington’s recreational marijuana marketplace is “upside down” in comparison of brands to retail outlets, a situation that has contributed to an overall commoditization of recreational marijuana bud.

The number of licensees increases weekly

The number of licensees increases weekly

There are currently 325 recreational marijuana producer/processors in Washington, most with at least one brand, and many who are marketing under several different bands. By comparison, there are just over active 150 retail stores to accommodate these brands, making the establishment of a brand name more challenging. With such an imbalance of processors to retailers, getting shelf space has become highly competitive and has allowed retailers to set the wholesale price points.

Screenshot 2015-11-27 12.59.23

An abundance of product supply has contributed to steadily lower price points that lead us to the question: has recreational marijuana become a commodity?

Let us first define terms. Webster’s dictionary defines commodity as

  • An economic good such as:

o   A product of agriculture or mining

o   An article of commerce especially when delivered for shipment

o   A mass produced unspecialized product

  • Something useful or valued
  • A good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price

Screenshot 2015-11-27 12.59.36Clearly cannabis is a product of agriculture, and an article of commerce that is currently being mass-produced. Many, especially producer/processors, would not agree that recreational marijuana is an unspecialized product.

Medical cannabis users will agree that mmj is something useful, and all consumers agree that it is valued. In the current marketplace marijuana is abundantly available and the large and growing supply is contributing to increasingly smaller wholesale profit margins. So, with the exception of it possibly being a specialized product, marijuana certainly looks a lot like a commodity.

But what about brand? Does the small profit margin diminish the importance of factors like the brand name?

The importance of brand is the deciding factor as to whether we can call marijuana a commodity or not. Can a processor grow a product that is so good that it can be considered a specialty product? A specialty product is defined as a product that certain consumers will actively seek to purchase of unique characteristics or loyalty to a specific band. Consumers who seek specialty products know what they want and will spend time and effort to get it. They typically will not easily accept substitute products. For example, a particular brand of single malt scotch may be a bit more expensive than other scotches on the shelf. Price is usually not an important factor for loyal consumers who demand specific product brands that match their personal preferences.

So if producers can grow specialty marijuana product of marijuana and establish a meaningful brand, then we can’t call marijuana a true commodity. So has any producer been able to establish a brand name yet? To find out we must look at several different factors.

Recreational marijuana is broken up into four basic groups: flower or bud; edibles; concentrates, including oils and waxes; and topicals. Topicals are just starting to hit the Washington market and are only around a $100,000 in monthly sales statewide.

By definition, since edibles and concentrates are not simple agriculture or mined, do not fit the definition of commodity. The edible companies are also the first companies that have started to build recognizable brands.

In order to look at what brands are recognizable to a majority of recreational users we must first look at what brands are in the most retailers. There are only four processors that were in over half of all the retailers in the state. The top three were all edible companies, Zoots (DB3), Northwest Cannabis Solution, and Spot (Botanical Seattle). BMF Washington holds the fourth spot with 80 retailers selling BMF Washington product. While BMF Washington does sell flower under the name Liberty Reach, they also manufacture the popular oil pens JuJu Joints. In addition, eight of the top eleven processors that are carried by the most retailers are either edible or primarily concentrate brands.

Screenshot 2015-11-27 12.59.44Sixty percent of all bud sold at the retail level in the state is sold in only four counties, King, Clark, Snohomish, and Spokane counties. Spokane County is the only county east of the Cascade Mountains and accounts for 14% of all sales in the state. However, 86% of all flower sold in Spokane County is processed east of the Cascade Mountains. In contrast King, Pierce, and Snohomish County account for 46%. However only 65% of the flower sold west of the cascades is processed west of the Cascade Mountains. Price is a driving factor in the separation of the states product.

The reason for this homogeneous selling pattern is simple: price. With the imbalance of retailers to processors, the retailers are setting the price for flower. King and Snohomish county retailers on average purchase bud on a wholesale level at just over $4 a gram. While Spokane County retailers only pay in the mid to low $3 a gram. This makes it cost beneficial for Eastern Washington processors that have enough product to travel to western Washington to sell for higher wholesale prices. But it is cost prohibitive for western Washington processors to travel east when they can sell their entire product west of the mountains for higher amounts with less travel costs.

As we approach the end of 2015 recreational marijuana is currently being sold as a commodity. However, it may not always stay that way. By July 1st of 2016 all medical marijuana will have to be rolled into the I-502 system. This will grow our current amount of retailers from the mid 100’s to over 400 retail shops within the next year. The WSLCB has also started to raise the canopy for the amount of product to be grown. Producers and processors may now grow 100% of square footage allowed by their tier; this is up from 70% that they were limited to. This will allow processors to grow more products and try to get it into more retail locations. It will be interesting to revisit this subject in November of 2016 and see how the market has changed. But for now, for better or worse, marijuana flower is a commodity.

Dauntless and Front Runner Partner To Deliver Real-Time Data For Cannabis Industry

WASHINGTON: Cannabis technology providers Dauntless Software, Inc. and Front Runner, powered by TetraTrak,  have teamed up in an effort to deliver best-in-class business intelligence to their customers, the two companies announced last week at the Marijuana Business Association’s 2015 Washington Marijuana Producer/Processor Seminar in Spokane, WA.

As part of the partnership, Dauntless will deliver real-time data through its TraceWeed database to Front Runner, which will integrate the new information into reports and data to help producers and processors manage their businesses more efficiently.

“Customers shouldn’t have to wait so long to get data back from the state. TraceWeed can deliver real-time data while still protecting client confidentiality,” explains Dauntless CEO, Clark Musser. “Front Runner will provide the industry insights needed to increase the ROI for our customers, which is core to our mission as well.”

“We are thrilled to work with TraceWeed and Dauntless Software to push the envelope for efficiently generating unique insights from industry analytics, and distributing to our customers,” said Brian Yauger, chief executive officer of Front Runner. “By leveraging our best-in-class business intelligence platform, clients will be able to quickly determine possibilities and risks when making important business decisions.”

Both companies will offer a 15% discount ($615-$915 savings) on each license, though using both services is still voluntary and customers can choose to use one service if they wish.  TraceWeed customers can add on Front Runner reporting services for $79 a month and have full access to that reporting suite. Those reports will be accessible through the TraceWeed login and interface shortly after data begins to flow in early December.

Dauntless is now scheduling installations for signed customers. New customers can expect to be up and running within 30 days.

For information or to schedule a demo, email info@dauntlessinc.com or call (206) 489-4942. Information can also be found online at traceweed.com.

MJ Research: The 2015 Front Runner/MJBA Washington Marijuana Retailer Report

By Brian Yauger and Joe Armes
Front Runner

WASHINGTON: The story of recreational marijuana’s first fourteen months in Washington state is a story of supply and demand imbalances, with recreational price points impacted by competition from medical and black markets unfettered by high taxation and strict regulation.

By all accounts the first year of I-502 was successful, with retail sales now topping $35 million a month. Still, recreational marijuana only accounts for approximately 30% of the projected $1.3 billion industry in 2015, with the black market and medical marijuana representing the remaining 70%.  I-502 retailers have tried very hard to bring the out-the-door price of the recreational marijuana down to be competitive with the black and medical markets. However, those markets remain robust, in part because they have not been handcuffed by the high taxes and cumbersome regulations put in place for I-502.

Front Runner/MJBA 2015 Washington Marijuana Retailer Report

Front Runner/MJBA 2015 Washington Marijuana Retailer Report

When I-502 retailers were allowed to open in July of 2014, there was a major supply shortage resulting from an inadequate number of licensed producers and processors.  This caused the initial cost of a gram of recreational marijuana to be sold out the door for over $25 dollars, in contrast to less than $10/per gram for the medical and black market consumer.  However, over the course of the year, the number of licensed producers and processors grew at a much faster pace than that of I-502 retailers.  This caused supply to heavily outweigh the demand, as there simply were not enough retailers open for business to accommodate the increased amount of product in the marketplace. Over the course of the year, prices began to drop to under $4/per gram wholesale, allowing retailers to lower their prices to the end consumer.  Retail prices dropped quickly – more than a $1/per gram each month from August 2014 to February 2015 – before they began to stabilize, dropping less than $.50/per gram from February through June.

In June 2015, the average cost of a retail gram of flower was $12.66.  On July 1, a new law, HB 2136, went into effect replacing the existing 25% excise tax at all three levels of I-502 – producer, processors, and retailer – with a 37% excise tax applied at retail.  Producers and processors were no longer forced to give up 25% of their revenue to the state tax system.  The result: wholesale prices dropped 10%, to a low of $3.39/per gram.  Retailers followed suit, and the average cost per gram of flower at the retail level dropped to $9.22, under the magic $10/per gram price point.

The average cost per gram of flower at the retail level dropped to $9.22, under the magic $10/per gram price point.

The average cost per gram of flower at the retail level dropped to $9.22, under the magic $10/per gram price point.

 

The drop in prices starting July 1 caused the first drop in retail revenue since the opening of Washington’s recreational marijuana marketplace.  Dropping from $25 million in June to just under $24 million in July, revenues fell even while the amount of product purchased increased from 4.8k pounds in June to just over 6k pounds in July – thus showing that the drop in prices directly caused the drop in revenue.

The monthly growth rate of recreational marijuana retailers is an astonishing 29.5% a month.  This growth rate, due to an increase in the number of new retail stores opening monthly, will not be sustainable over the long term.  However, we do expect a high growth rate to continue throughout the rest of 2015 and most of 2016, as more recreational retailers come on line, and medical marijuana is integrated into the I-502 system.  Individual retailers have seen an average of a 5.63% growth rate each month.  This equates to each retailer increasing their revenue approximately $10 per day.

While recreational pot sales are robust 7 days a week, Fridays and Saturdays are the highest selling days, averaging just under $1 million sold each Friday statewide and just at the $1 million mark on Saturdays.  Mondays are the lowest-selling day of the week, at just above $600k, while Sunday, Tuesday, Wednesday, and Thursday are hover at ~$800k.  Retailers that are closed on Sunday may be missing out on a decent day of sales, and should consider opening on Sundays.

The number of recreational retail customers has increased dramatically, while the amount they are spending has stayed constant.  We saw a growth from 1,000 retail customers a day in August 2014, to a high of 40,000 customers a day in July 2015.  The average ticket price balanced at approximately $40 a day for several months until dropping to just over $30 a day after the implementation of HB 2136 and the subsequent drop in prices.

The majority of all sales in Washington State are concentrated in only four counties.  Western Washington sells just under three times more recreational marijuana than eastern Washington.  Forty six percent of the weight sold comes from King, Pierce, and Snohomish counties, with Spokane County making up fourteen percent of all sales. The remaining 40% of sales comes from all other counties.

The outlook for recreational market remains strong.  With the medical market set to be folded into I-502 in 2016, we predict that the gap will start to close between the black market and the legal market.  As an added factor of prices rivaling that of the black market, we will continue to see large increases in the number of customers making purchases in I-502 retail stores.

As of early October 2015, there were 182 retail stores recording revenue in Washington. We project that by July 2016 that number will grow to between 288-294 retailers, ensuring that the high growth rate that we have seen will continue into 2016.

Washington Legal Pot Prices Fall To Under $10 In July

WASHINGTON: The price of legal marijuana at Washington’s legal recreational pot shops has fallen to an historic low of under $10 per gram of flower. Industry insiders place the cause squarely on the state’s newly rejiggered marijuana laws. Consumers and retailers are happy with the new low price points; while many producer/processors are struggling to differentiate.

“The impact of HB 2136 was dramatic on the price of marijuana in the WA retail shops,” said Brian Yauger, CEO of Front Runner, formerly TetraTrak, a leading provider of business intelligence for the legal cannabis industry.  “The average cost of a gram of flower dropped almost 25% a gram to under $10.  That now puts i502 recreational prices on par with medical.”

HB2136, signed into law on June 30th by Washington State Governor Jay Inslee, consolidates cannabis excise tax, and allows local jurisdictions to share marijuana tax revenues to encourage more cities and counties to allow for legal pot shops.  It went into effect on July 1st, and the result was an immediate drop in retail sales prices. 

In response, Front Runner and Marijuana Business Association have teamed up to present the 2015 Washington Marijuana Retailer Seminar on October 5th at the Red Lion Hotel in Bellevue, WA.    The MJBA Professional Seminar will feature presentations from Yauger and TetraTrak CDO Joe Armes, who will provide a comprehensive look at the WSLCB wholesale and retail sales data to date, with an eye toward giving 502 retailers actionable business intelligence.

“I want every retailer who attends this seminar to feel that they’ve gotten the value of the ticket price back in the first 15 minutes of the event,” Yauger told MJNN.

Leading Retailer Uncle Ike’s founder Ian Eisenberg will be a featured speaker and panelist. He’ll be joined by an impressive lineup of top retailers including Evergreen Market, Satori and The Joint.  Top cannabis brands Zoots, Mirth Provisions, Evergreen Herbal, Buddy Boy Farm and Monkey Grass Farms will participate as featured panelists.  Event sponsors include Green Bits, PayQwick, Visual Options, CannaVentures and Sky High Gardens.   

The 2015 Washington Marijuana Retail Seminar: Becoming A Front Runner, October 5th in Bellevue, WA

WASHINGTON:  Front Runner (formerly TetraTrak.com), a leading business intelligence resource for Washington’s licensed cannabis industry has teamed up with The Marijuana Business Association, to present: “The 2015 Washington Marijuana Retail Seminar: Becoming A Front Runner” on Monday, October 5th at the Red Lion Hotel in Bellevue, 1-5PM, with a VIP Reception to follow at the hotel bar.

The MJBA Professional Seminar will feature presentations from Front Runner’s  Brian Yauger and Joe Armes, who will provide a comprehensive look at the WSLCB wholesale and retail sales data to date, with an eye toward giving 502 retailers actionable business intelligence to help them build sustainable profitable businesses.

“I want every retailer who attends this seminar to feel that they’ve gotten the value of the ticket price back in the first 15 minutes of the event,” Yauger told MJNN.

Leading Retailer Uncle Ike’s founder Ian Eisenberg will be a featured speaker and panelist. He’ll be joined by an impressive lineup of top retailers including Evergreen Market and The Joint.

PayQwick CEO Kenneth Berke and Green Bits Business Solutions Director Matt Beckley will join Brian Yauger and Joe Armes for a roundtable discussion on retail trends.

Listen to the keys to Romancing the Brand with top executives from Washington’s leading CannaBrands: Zoots, Mirth, Evergreen Herbal, Monkey Grass Farms, Buddy Boy Farm and Sky High Gardens.

Event sponsors include: TetraTrak, Green Bits, Visual Options, PayQwick, CannaVentures and Sky High Gardens.

Reserve your Front Runner spot today. 

Brian Yauger on stage at MJBA Meetup in Seattle.

Brian Yauger on stage at MJBA Meetup in Seattle.