Cannabis Prices Rise in Nevada Due to Supply Issues
Nevada has had a rough time with rules, regulations, supply and pricing since cannabis first became legal on July 1. Now, prices have risen by 200 percent due a statewide cannabis shortage problem.
According to Forbes, the Nevadan market cannot keep up with demand. Currently there are still only two distributors in the state. “We predicted the supply issues in Nevada when the demand for the products quadrupled overnight,” said Joel Milton of Baker, a customer engagement platform for dispensaries, to Forbes. “Nevada did not issue enough cultivation licenses, and it does not help that the production cycle from seed to sale in cannabis is untimely.”
Milton also explained that dispensaries are experiencing more foot traffic, and collecting much more money from recreational sales. Some of the same purchasing patterns among customers that have been reported in other recreational markets have been identified in Nevada. For example, Milton explained that dispensaries are seeing three to four times more foot traffic in total, and approximately three-quarters of all cannabis sales are for recreational cannabis.
The problem originally arose because in Nevada, only alcohol wholesalers were permitted transport cannabis, at least for the first 18 months of the program. Applications for the alcohol retailers did not come through, and a frustrated public did not have their product. The state has now agreed that, under certain circumstances, others can transport cannabis, but demand is still far outweighing supply.
Nevada has been struggling with this rough start since July when the state launched its program early. The state wasn’t expected to offer cannabis sales until 2018, but state officials decided to move forward with the program sooner than expected in order to generate profits. Considering this fact, the kinks that are currently being worked out are understandable, however visitors and voters have proven that they are ready for easy access to cannabis.
