PORT ANGELES — With an overabundance of marijuana in the pipeline, the price of recreational pot on the North Olympic Peninsula has fallen dramatically since the area’s first stores opened in 2014.
“When the market started there was not enough product available as the growers and retailers came online at the same time, so prices were high and quality was not that great from the majority of farms,” Nick Benge, owner of Sparket R&R of Port Angeles, said Thursday.
The recreational pot shop opened in March 2015.
“We are now a year and half into this new industry, and the quality and yield has increased dramatically as producers have become tuned in to their new large-scale productions.”
Throughout Clallam and Jefferson counties, a gram of recreational marijuana costs about $12, according to shop owners contacted by Peninsula Daily News. That remains above the state average.
Since recreational marijuana sales started in 2014, prices have dropped from about $25 or $30 per gram statewide to about $10 a gram, according to the Washington Liquor and Cannabis Board.
“We have some $8 grams and numerous $10 grams” for sale, said Molly Fahrenschon, an employee at Sea Change Cannabis near Discovery Bay.
“I think in our store, just eyeballing it, I’d say average is probably about $12,” per gram.
Dillon Miller, assistant manager at Sparket R&R, and Jordan Horn, marketing director at Cannabis Coast in Forks, also said their average per gram was $12.
Sea Change Cannabis in Discovery Bay was the first to be licensed and open in either Clallam or Jefferson counties when it opened in July 2014, and sold out of its entire inventory of 2½ pounds the first day. Recreational marijuana was legalized for adults 21 and older in 2012 with the passage of state Initiative 502.
“In the beginning, we were only able to be open [about] two hours a week because we would run out,” Fahrenschon said.
But even when demand greatly outpaced supply, “our store never had a gram [cost] more than $20, and that is taxes included,” she said.
“And, we stopped having $20 grams months ago.”
Prices could continue to fall, Fahrenschon said.
“Things could definitely drop,” she said. “There is tens of thousands of pounds of unsold weed in the state right now.”
As a result of the excess marijuana supply, “I believe we will see a dip in prices in 2016 as a result of supply exceeding demand due to an increase of state licensed growers joining the market, existing growers expanding their operations to their legal limits along with improved farming methods increasing production,” Benge said.
“Unfortunately, we have already seen growers fall by the wayside as a result of extortionate costs borne by the industry for mundane expenses such as rent, insurance and banking and more will fail this year bringing a steadier market at the end of 2016,” Benge said.
“Not only is 2016 going to be a competitive year for growers, but the state is issuing more retail licensees, which in smaller towns like ours on the Peninsula, will make the retail market more competitive.”
According to the Associated Press, 222 marijuana licenses are set to be added throughout the state this year, including one for a Sequim store to open next month.
Competition already is fierce, Miller said.
“We do have a lower price than most places” because of “a concentration of stores to our population and area,” he said.
There are currently four stores in Port Angeles.
“Everybody is on top of each other here,” Miller said. “We are pretty close together, so competition is tough. It is healthy competition for sure.”
Out on the West End, Cannabis Coast in Forks is the only retail marijuana store.
The store opened Sept. 25.
“We don’t have a whole lot of competition,” Horn said. “It is an hour drive to get anywhere else, so keeping prices down here is really good. We are still making money.
However, prices have still fallen in line with the state average.
“Generally, prices . . . have dropped around here,” Horn said.
“We do have a local grower that supplies us, and he is about $12 a gram. We also have growers coming out from over by Seattle and theirs are about $13 to $15 a gram, which is definitely doable because they are putting out really excellent product.”
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Reporter Chris McDaniel can be reached at 360-452-2345, ext. 5074, or cmcdaniel@peninsuladailynews.com.
