Pot black market still thrives after Colorado legalization

[slimvictor]

Although recreational use of marijuana has been legal in the state of Colorado for nine months, some people are still choosing to buy it on the black market. Critics say legalization has created two systems: a legal market for those who can afford it and an underground market for people who can't. PBS NewsHour Special Correspondent Rick Karr reports from Denver.




TRANSCRIPT
RICK KARR: Marijuana grower and retailer Andy Williams can barely keep up with the demand for his product these days. He says he can’t imagine a more exciting and lucrative industry to be in right now. But the buzz is all coming from capitalism. He doesn’t even like cannabis.

ANDY WILLIAMS: I tried every few years just to prove to myself I still don’t like it. You know, it just affects me very poorly.

RICK KARR: When he started his business a few years ago, Williams could only sell medical marijuana. That put him in position to be one of the first to sell recreational cannabis when it became legal this year. Business has been so good that Williams is about to hire three dozen new employees and ramp up production in a new state-of-the art factory.

ANDY WILLIAMS: It’s manufacturing is what it is as far as I’m concerned. You are manufacturing marijuana. This is an industrial manufacturing plant that grows marijuana.

RICK KARR: Stores like these can now sell up to an ounce of marijuana to customers who are 21 and over. The products come in all kinds of forms: cannabis buds from a range of varieties bred to treat particular ailments, provide a mellow buzz, or deliver a powerful rush.

Pre-rolled joints, pot-laced brownies, hard candy, and chocolate bars, marijuana infused beverages and massage oil. Consumers spend tens of millions of dollars a month on those products, but Williams is sure there’s a lot more money to be made in his business.

cont at
http://www.pbs.org/newshour/bb/nine...eational-marijuana/?google_editors_picks=true

 

[S.J.B.]

The taxes are not that high. The price will go down as competition increases. This study estimates that the total cost for a large indoor grow operation should be between $70 and $215 per pound, or $4.40 to $13.40 per ounce.

Assuming a 100% profit, the total cost with all taxes would be a maximum of $36.20 per ounce.

 

[neversickanymore]

The new guys will have to catch up on quality if they want to end the BM.. given this. it will take a long time.. then I say provide an easy way for the black market to join the reg market.. but by all means continue your idealistic thinking... yeah cause its done so much for so far. Let the people into the market and reap your rewards and watch it flourish.. haven't learned anything from forty years of the black market have you. *shakes head*

 

[silas GUY]

Man i'm in the wrong business !!! It grows like a weed and i would bet the Import biz is feeling the pinch.

 

[Help?!?!]

Of course there's always going to be a black market unless the pot shops will put out more competitive costs. Everyone knows even headies isn't worth fifty or sixty an eighth, especially when it can be near mass produced legally.

 

[szuko000]

And that is what the government needs to realize. It is not like moonshine which may not have a huge underground market, im sure it does and im just not as aware of it. But if they want people to switch to legal they need to be competitive. CT recently made medical marijuana legal and its (highest possible street price, use your head) dollars a gram maybe more if the availability is low. That is ridiculous, sure older people with no connections are going to get it there but why on earth would i go there when i can get it for substantially less and use my card to get away with carry.

I hope they end up not doing well so they need to be competitive, we are talking about medicine, not a recreational substance. Hell my suboxone was cheaper and that shit does not grow in the ground, well directly at least.