Marijuana Sales Have Doubled in 1st Month of Retail Sales, Says Business Leader
Friday, October 30, 2015
“Business is doing very well. Most dispensaries are doing two-to-three times more business than they were before,” Morris said. “We have reports from members whose sales were roughly $1,000 or $1,5000 a day before recreational sales began who are now reporting $3,000 or even $4,000 a day.”
As GoLocal reported, the Oregon Retailers of Cannabis Association said the state sold nearly $11 million during the first week of recreational sales. Casey Houlihan, the association’s executive director, told GoLocal that while sales have calmed down since the opening week, Oregon marijuana retailers have seen a large sustained increase in profits since recreational sales began earlier this month.
“I think we’re seeing at least a two- or three-fold increase in sales across the board,” Houlihan told GoLocal. “For some stores, it may very well be five-fold or even ten-fold. When you increase a market from 70,000 licensed medical marijuana patients [there are actually 76,723 medical marijuana patients in Oregon as of October 1] to 3.9 million Oregonians, that is going to have a big effect on business.”
Sales Skyrocket
Morris said that while the figure of $11 million that was reported by the Oregon Retailers of Cannabis Association “may be a little high,” there is every reason to believe that cannabis businesses are thriving.
“I think that figure can be sustained long term,” Morris said of the increase in sales. “On the first three days, we saw peaks everywhere, but then sales immediately fell off. We feel comfortable that businesses will be able to maintain sales at that rate of two or three times what they used to do.”
Aviv Hadar, owner of Oregrown Dispensary in Bend, said his sales continue to be high during the first month of recreational purchases. He said that roughly 70 percent of his customers are now recreational users.
“It’s actually been pretty surprising. I could not foresee demand being this high,” Hadar said. “I’ve increased my staff since recreational sales began. We now have 30 employees up from about six or eight when we could only sell to medical customers.”
Jonathan Modie, a spokesman for the Oregon Health Authority, the agency in charge of early recreational sales, said the state has not been tracking sales of marijuana up to this point. Modie estimated that once the state begins collecting taxes on recreational marijuana purchases in January of 2016, the Revenue Department would begin to examine sales figures more closely to ensure businesses are paying their fair share of taxes.
Edibles, Other Products Could Cause Boom
Morris, of the Oregon Cannabis Business Council, said that he thinks another sales boom could be on the way for Oregon’s recreational marijuana business. Currently, recreational customers cannot purchase edibles, shatters, concentrates or any marijuana products other than seeds, immature plants or dried flowers. That is set to change next year, and Morris said he believes it will give the industry a serious boost.
“Absolutely that will be a big factor and a big seller going forward,” Morris said of the sale of edibles and other cannabis products. “I think that most businesses will see sales jump up by another two or three times when edibles come on the market.”
Hadar said that customers in his store are already asking questions about edibles and other marijuana products, and agreed with Morris’ assertion that it will be a big money-maker for retailers.
“We’re seeing a lot of demand for edibles and concentrates. I think sales are only going to go up when those become available,” Hadar said. “I think people are going to absolutely lose their mind when they can buy cannabis in an extract or as a candy bar.”
Morris and Hadar cited the popularity of marijuana edibles in Colorado, where marijuana has been recreationally legal since 2014. According to the Denver Post, 45 percent of the state’s marijuana sales were edible products, and Morris said he expects that same demand to drive sales in Oregon.
“People want those products, particularly older consumers,” Morris said. “A lot of them have given up smoking because of health concerns, but still want to consume marijuana now that it’s legal. I think people will really respond when those become available, and businesses will really benefit from it.”
Related Slideshow: 20 Things You Need to Know About Buying Pot in Oregon
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