CINCINNATI — With recreational marijuana now legal in Ohio, many have wondered why costs are higher here than in dispensaries in Michigan or other states.
While high prices may be frustrating now, those in the cannabis industry say you can take a deep breath. UC Blue Ash economics professor Keshar Ghimire looked at the prices.
"The flower is about five times more expensive in Ohio right now, and edibles are almost double what's available in Michigan," he said. "It's not really surprising at all."
David Craig, chief marketing officer of Illicit and From the Earth Dispensaries, said prices will remain elevated for the next few months — but this is standard.
"It's like a blackout date in terms of, like, going to Disneyland on the Fourth of July, or going to a cannabis dispensary on 420," Craig said. "This whole first month or two is going to feel like 420 and you're going to have these just huge rushes as people want to buy cannabis."
Craig has witnessed the transition happen in other states. He explains what typically happens as a cannabis market makes the switch from strictly medical to recreational.
"There’s a lag behind the industry catching up to the demand for recreational purchases," he said.
He said during that time frame, prices do tend to become higher. Licensing also plays a role in pricing.
"(In Michigan) licensing there has been very free and less restrictive," Craig said. "It's easy to get a license, there's more of them about."
As a result, "most people lower the prices."
Jason Erkes with Cresco Labs agreed. He said states like Ohio and Illinois have a limited license structure, where there are only so many businesses approved.
When too many businesses open up, the market can become saturated. Prices will then drop, but he said many businesses end up failing.
Craig’s message to Ohioans is it give it some time. He said prices will drop significantly eventually.
"Sometimes it happens in three, four, five months … sometimes it happens in about a year," said Craig. "But overall, the trends always go down. The price always comes down as more suppliers come in. Prices go down as supply kind of meets the demand."
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