Wednesday April 5, 2017

By BDS Analytics

Marijuana Prices in Denver and Colorado: Winter 2016/17 Update Education

Another quarter, another pricing report! This time, we’ve aggregated data from dispensaries across Colorado to bring you the most up to date information on retail marijuana prices for Winter 2016/2017.

Over the last several months, we’ve continued to see decreasing retail prices. Whether you’re a tourist or local alike, the numbers below signify an industry that’s more readily available to the majority of the population, due to higher competition and more states with emerging legal cannabis markets.

As always, we’ve teamed up with our friends at BDS Analytics, a company that aggregates point of sale data from Colorado dispensaries and produces monthly reporting detailing sales of all products selling through such businesses. The information that’s gathered allows us to gain a better idea of flower pricing trends.

And here we go.

Since January 2014 when adult-use (recreational) cannabis sales started in Colorado, flower prices have experienced a steady decline. In a free market, supply and demand determine price and in Colorado’s ultra-competitive cannabis industry, consumers have been the beneficiary of retail price wars.

Over the course of the 6 months ending February 2017, the price for a gram of flower/bud selling at Colorado Adult-use locations averaged $6.86 before tax. Prices during this period started at $6.94 a gram in September and in fact ended higher at $7.09 a gram in February. After hitting seasonal lows in December it is normal to see a slight rebound in prices in the first few months of the new year.

Colorado - Bud and Flower Retail Price per Gram vs. Volume

Despite the late rally, flower prices in the last 6 months are down 14 percent from the preceding 6 months and down 22 percent from the same time last year.

Overall flower sales reached $256 million in the last 6 months which represents a 9 percent increase from the preceding 6 months and a 31% increase from the same time last year.

While erosion of flower prices has been a long-term trend, the floor has seemingly been established. Over the past months $3.64 a gram pre-tax is the lowest average price at which retailers are selling bud. Not surprisingly, popcorn and shake prices go ever lower.

While the bottom has leveled out, the top continues to come down as competition is extending out to most areas of the state. Retailers who once enjoyed local monopolies that could command high-prices, increasingly are finding competition. In the last 6 months alone, $16.60 pre-tax was the highest average price charged for a gram of flower amongst retailers submitting data to BDS Analytics.

Colorado - Average Gram Price

The top 10 selling strains generated $28 million in sales in the last 6 months and accounted for 11 percent of all flower sales.

Top 10 Selling Strains by Volume
#1 Blue Dream
#2 Gorilla Glue #4
#3 Golden Goat
#4 Lemon Skunk
#5 Sour Diesel
#6 Durban Poison
#7 Flo
#8 Chemdawg
#9 JillyBean
#10 Green Crack

The average retail selling price for the top 10 strains was $8.00 per gram, 14% higher than for all strains combined.


BDS Analytics aggregates POS data from dispensaries and produces monthly reporting detailing sales of all products selling through dispensaries in Colorado, Oregon, and Washington. The information cited leverages BDS data to provide a snapshot of flower pricing trends. For more information on specific strains, brands, or any other product category sold in dispensaries please contact BDS Analytics, greg@bdsanalytics.com.


BDS Analytics BDS Analytics

BDS Analytics aggregates POS data from dispensaries and produces monthly reporting detailing sales of all products selling through dispensaries in Colorado, Oregon, Washington, and now California. The information cited leverages BDS data to provide a snapshot of flower pricing trends. For more information on specific strains, brands, or any other product category sold in dispensaries please contact BDS Analytics, greg@bdsanalytics.com.


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