Roddy said:
Sorry, we'll try again. Make it so anyone can GROW and the market will get flooded with surplus. The SURPLUS will bring the market down which will then make it less attractive for those making a living who will find a different way.
No Hal, not saying EVERYONE will grow, saying with everyone ALLOWED to, more will. This means more product. Economics say that will drive the price down...in fact, we've seen it happen already in states with MMJ, as I recall. Truly though, if everyone can grow, I would imagine backyard seed poppers cropping up all over the USA.
It's called economics...and yeah, I can argue it. Game on??
Oh, and Hal, I believe we both know that more people will grow, this means there'll be many more places to buy from...like farmer's markets, I imagine.
Great discussion for sure, and this is something I know quite a bit about.
The Market. Not Farmers markets my friend....Dispensaries are the outlet.
As Hick stated, the Gov wants thier share, and Farmers Markets are too "unregulated" to be a viable,legal way to trade/sell product. It has been tried here many times, only to be shut down locally.
Market flooded. Ha. You have no idea. The Market out here is FLOODED to say the least. This year being worse by far then years previous.
Market value of herb is at a all time low. The prices I see is driving out "the fortune seakers" left and right.
Criminal Interests. First off, I will start this out and remind us all that ALL OF US are criminals. NEVER forget that. It does not matter what your state is telling you of your legal rights ro grow, at anytime, Fed LEO can come swoop you away. Believe it happens.
But, yes, I understand what Hick is speaking of, and he is correct, to a point.
What I see here is Criminal enterprises running HUGE shows (80-100 lights) and to keep costs down, they steal power. This is a HUGE problem that rarly gets caught. As much as some of you would like to think this is rare, in fact, it is not. They make it far to easy to bypass that meter, and unscroupulous folks do it everday. The criminals feel the effect of a flooded market too, and they, like legal growers, are doing everything they can to keep the costs down.
The MMJ biz is like ANY other biz. The final product price plummets, and you have to either control costs or go under. Most are now going under.
So, Roddy, you are correct. As your laws get more defined and folks feel "enabled" to grow, you will see a huge influx of new growers and more and more product in your State. This in turn will drive the price down.
This will then "weed" out the wanna be's and leave professionals.....and sad to say, the criminals. The "mom and pop" operations will flounder, as they will have a harder time generating ebough revenue to continue operations.
My predictions.
This applies only to my State right now, but will be seen in other states I believe in the coming years.
The influx of growers will in fact, flood the market. This in turn will drive the price down. Growers will have no "profit margin" and will soon fall out.
You will see a big exodus of growers. The price will begin to climb.
I am seeing the market value finally start to climb here. Only in the last few weeks. The deluge of outdoor is passing and there are far few indoor growers, so it is natural that the price will climb. I would expect the price to be at a substantial higher value then that of a year ago. By this summer, it will be back to the 3500 range. As it sits 1 month ago, it is at the 2-2400 range.
Only the strong will survive.