Legalization in Oregon Worries Washington Retailers

Washington
and Colorado can now welcome Alaska, D.C. and Oregon, to the list of states
where it’s legal to smoke recreational cannabis. D.C. and Alaska’s legalization
will have implications all their own, but Oregon’s legalization is set to have
the biggest impact on Washington. What does Oregon’s legalization of
recreational cannabis mean for the Washington State’s existing legal cannabis
market? It could be devastating.

Washington
State’s recreational cannabis market has been largely criticized as unsuccessful.
With constant supply issues, rampant over-pricing, and an attempt to push out
the much-preferred medical cannabis market, many are not happy with the way the
Washington State Liquor Control Board has carried out recreational cannabis
regulation in Washington State. Oregon plans on doing things differently,
following Colorado and going the simple route. This different approach may be
the final blow to Washington’s already floundering recreational cannabis
market.

The
main difference between legal cannabis in Washington and Oregon potentially, is
the price point. As it stands now, to go into a legal store and buy cannabis in
Washington State means prices start at about $20 a gram. You may luck out and
get a strain for a bit less, but nothing below $15 a gram, which is not a
competitive price. Compare it to $10 a gram or less at medical dispensaries, or
the going rate of $150 an ounce on the black market, and it becomes obvious
that recreational stores in Washington aren’t trying to price their product to
sell to connoisseurs.

Oregon’s
projected cannabis prices are much more reasonable. According to the Oregon Cannabis Tax Revenue Estimate,
Oregon is looking at selling ounces for a very competitive $145 an ounce.
Helping drive the price down, is the new law in Oregon’s promise to keep taxes
lower. If Oregon retailers are taxed lower than Washington State’s whopping 25
percent excise tax, price cuts will naturally pass on to the customers.

Though
retailers in the Northern half of the state won’t have to worry about the
competition too much, retailers who border on Oregon, will undoubtedly lose
business. With Oregon cannabis prices a fraction of Washington’s, serious cannaseurs
are sure to journey south for supplies.

Brian
Budz co-owns a retail cannabis shop in Vancouver, WA, and has concerns about
Oregon’s impending legalization. According to Budz, Oregon’s new recreational
cannabis laws tax policies will “make it easier for retailers to breathe and make a profit.”
In turn, making it harder on Washington’s much more expensive retailers.

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Only time will tell
what impact Oregon’s recreational cannabis legalization will have on
Washington’s recreational cannabis retail business. Hopefully Washington state
cannabis retailers will catch a break, and Oregon stores won’t have too much of
an impact. Maybe Washington State will take a page from Oregon’s book, and try
to catch up, making legal recreational cannabis work for everyone.