Roughly speaking, by the time cannabis gets to the consumer the price per pound is double or more than the AMR (average market rate). (Pulled from CO DOR ) Why The Average Market Rate Matters This is up 30 percent from ~$1,000 in October 2019. In the chart below, available on the Colorado Department of Revenue website, you can see that growers of marijuana in Colorado, on average, charge ~$1,300 per pound in October 2020. The AMR is the basis for taxes and is reviewed based on weight. Once every three months, the Colorado Marijuana Enforcement Division, known as Colorado MED, uses data from grower to manufacturer (like an edible producer) or seller (such as a dispensary) to determine an Average Market Rate (AMR). Prices of cannabis in Colorado vary based on brand, region, current specials, and dozens of other factors.īuilt within this is a feedback loop for the state and cannabis producers and dispensaries. We will use these as benchmarks in the analysis below. In order to create a methodology that captures the consumer-end price, we’ve added 200-300 percent to the AMR price the Colorado Marijuana Enforcement Division uses for taxation.Īverage Price Per Ounce in Colorado for Recreational Consumers: ~ $160 - $240Īverage Price Per 1/8 Ounce in Colorado for Recreational Consumers: ~ $20 - $30Īverage Price Per Gram in Colorado for Recreational Consumers: ~ $5.76 - $8.64 This is the result of paying employees, renting property, buying equipment, and other business operation expenses. Once dispensaries have received the flower, the price doubles or triples before reaching the buyer. Put another way, growers on average charge dispensaries the following: Creating A Consumer Methodology for Determining The Price Of Weed in ColoradoĪccording to the Colorado Department of Revenue, in October 2020 the average price per pound of flower for growers to dispensaries was ~$1300. That’s why we created this guide – to describe how much weed in Colorado is, how much it differs across the state and why. Legal weed prices also aid in reducing black market activity around cannabis, so long as they are low enough to prevent those selling it from being able to reliably turn a profit. One of the factors that influence these legal changes? The average price of weed in Colorado.Ĭolorado weed prices affect how much tax is collected. While it’s been a ride, the laws governing cannabis sales in the state evolve every year. As of 2020, Colorado is closer to a decade of recreational marijuana being legal than a modern preschooler is to third grade.
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