RE:RE:$10 per gramAlthough things may change depending on what Ford does, Ontario was pushing back on companies before he took office as prices were 'too high'. Ontario wants, or wanted $7.50 a gram to consumer, which would INCLUDE the $1 per gram tax;
https://www.theglobeandmail.com/cannabis/article-ontario-presses-cannabis-suppliers-to-cut-prices/
If that happens (see article above), we're looking at net $6.50, but the dispensaries need to make money, as does Ontario, so I'm guessing it'll be 45/55 as the LCBO runs at 48.3% margins, and I don't think dispensaries can stay open at $1 profit per gram. That would put it closer to $3.00 to $3.50 a gram wholesale as from what I understand Ontario would buy the weed from the suppliers and sell to the private dispensaries, so both Ontario and the dispensaries need to make money and cover shipping costs in that equation. I would assume the greater half of the $6.50 split would end up on the distribution and sales end, but we won't know until Ford decides what's going to happen.
I don't think we'll see $10 a gram unless or until boutique weed starts to do well, and that will only happen if the other weed being grown isn't up to par, which remains to be seen. Companies like HEXO are already selling $6 grams with free shipping for some strains, and Aurora has similar pricing. People can dispute bud quality etc, strain and branding, I can respect that, but the bottom line is pricing will have to be competitive;
https://thehydropothecary.com/products/h2
Anyhow, I would love to see $8 to $10 grams but I doubt it would be able to keep the black market away. Who knows, GLTA. Here's hoping for the best as we have no idea what's going to happen until Ford speaks up
TruthAboutHip wrote: Okay so let's look at this through the lens of $8.84 per gram. This means Newstrike currently has less than 1,000 kilos of marijuana. So if you assume that they calculated their inventory based on a higher price they have less weed and if you assume that they based it on a lower price they have more weed. The question here is what scale they are basing their financials on ? Or are they playing both ends to maximum benefit ? They have included a @ $2 million increase in the valuation of their inventory in these recent financials which will only be reflective of a market which can support this inflated valuation.
If they cook things with a valuation which is high on the end of "actual value" and low on the end of "inventory" then you get a much rosier picture. Get it ? So the most important question still exists, how many kilos of inventory do they actually hold ?
I think that is has been reasonably expected across the industry that suppliers of MJ will get roughly $5 per gram wholesale. The $8.84 price is possibly related to actual consumer costs but even that will be considered high in the near future. Unless Doug Ford comes forward with a buck a joint incentive program prices will be reasonable at $4-5 per gram wholesale with around $6.50-$8.50 for consumer prices.
That's what I think.