Michigan cannabis industry having to change way they do business
LANSING, Mich. (WILX) - The recreational marijuana industry was like the wild west at first, but now it’s settling down into modern American capitalism.
Competition is supposed to be good for customers and the marijuana industry in Michigan is proof. The average ounce of weed costs a little more than $100. But last year, it was twice as much according to the state regulatory agency. And with the price of cannabis so low, businesses are feeling the impact.
Steven Karapandza is with Apothecare - a company that grows and sells cannabis. He said his shop hasn’t been impacted, but he can see how small businesses are in a crunch.
“Compared to some of the other corporations that are here in Michigan that are multi-state operators, yeah it definitely impacts when you come into the financial expect of it,” said Karapandza. “Some people might have millions of dollars behind them to do purchasing or it could be hundreds of millions.”
Karapandza said when businesses have more money to operate, they can use it for marketing and employment.
But Shelly Edgerton at the Michigan Cannabis Manufacturers Association said both large and small businesses are being impacted by the low costs.
“I think everyone is looking at you know what efficiencies they can create you know in their business model as well as maintaining their potentially their vertical integration and maybe shifting their employees around,” said Edgerton.
Edgerton said this is a ripple effect of lots of people wanting to get involved in a growing industry.
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