on March 5, 2014
The economic threat the black market poses to legalized recreational cannabis sales may have been vastly overstated.
According to a new consumer market research study from the editors of Marijuana Business Daily, more than 60% of cannabis users said their biggest concern when purchasing marijuana is buying it from legal sources.
A large percentage also prefer to buy tested, labeled cannabis products or purchase from those offering a large selection of strains – two areas in which state-legal dispensaries have a huge edge over the black market.
Legal retailers and growers have been concerned because black market producers have two major market advantages. Firstly, their cost of goods is far lower, as they generally do not pay taxes, lab testing fees, licensing fees, etc. Secondly, most black market producers have longstanding customer relations that might present a barrier to competition.
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According to a new consumer market research study from the editors of Marijuana Business Daily, more than 60% of cannabis users said their biggest concern when purchasing marijuana is buying it from legal sources.
A large percentage also prefer to buy tested, labeled cannabis products or purchase from those offering a large selection of strains – two areas in which state-legal dispensaries have a huge edge over the black market.
Legal retailers and growers have been concerned because black market producers have two major market advantages. Firstly, their cost of goods is far lower, as they generally do not pay taxes, lab testing fees, licensing fees, etc. Secondly, most black market producers have longstanding customer relations that might present a barrier to competition.
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