Apart from state regulators, few have a more expansive a view on which products pass through dispensaries on their way to consumers than the sales trackers from BDS Analytics,<\/u>\u00a0and now they\u2019ve used that information to compile the industry\u2019s first-ever price index, a move they announced Tuesday.<\/p>\n
According to\u00a0BDS<\/a>, the new index will serve as a benchmark for the retail price of cannabis nationally. They also announced the launch of a monthly report on consumer sales across Arizona, California, Colorado, Oregon, and Washington.<\/p>\n BDS begins its report with the data from January 2018, when the world\u2019s largest recreational marketplace opened up in California. From there, the report goes through each month until October, covering fluctuations in price in between.<\/p>\n \u201cEvery business in the cannabis industry is making assumptions about the current and future retail prices of cannabis products,\u201d said Roy Bingham, CEO and co-founder of BDS Analytics said in a\u00a0statement<\/a>. \u201cAfter years of capturing and processing this data, we have decided to remove all of the guesswork for both businesses and investors by providing them with a sound basis for planning and projections.\u201d<\/p>\n The National Cannabis Industry Association was supportive of the move that would further normalize the industry.<\/p>\n \u201cI think this is a great idea, particularly as more states create legal markets and more companies are going public,\u201d said NCIA Media Relations Director Morgan Fox. \u201cIt is very useful for investors and entrepreneurs to have some clarity regarding the viability of their efforts, and such an index could also be helpful for states creating new markets when it comes to establishing things like tax rates and licensing fees.\u201d<\/p>\n Fox said he could also see the index being useful for federal lawmakers in the near future who are going to be looking at federal tax rates and fees associated with a national and international legal market.<\/p>\n \u201cHaving a reliable price index also goes a long way toward normalizing cannabis as a commercial product like any other in the public eye and in the business community,\u201d he said.<\/p>\n<\/blockquote>\n According to the report, October\u2019s prices saw a drop by 1 percent from September and generally speaking, prices are down 2.5 percent from the original baseline set in January. The report also notes the number of sales tracked by BDS\u2019s GreenEdge software was up 34 percent year-to-date. This growth was led by vaporizers seeing an 81 percent jump in demand. But edibles also aren\u2019t to be scoffed at either, after seeing a 56 percent growth in the same time period.<\/p>\n \u201cThe CPI is unique in its ability to index pricing across all product categories,\u201d said Bingham. \u201cThis will prove to be a significant insight as flower rapidly becomes a commodity product and growth in the U.S. cannabis market is largely driven by new product categories.\u201d<\/p>\n BDS\u2019s California Regional Director Tamar Maritz spoke with Cannabis Now about some of the factors that had the biggest impact on price this year, and what will likely happen in the near future. Maritz said that with another wave of regulatory hurdles like California\u2019s integration with the\u00a0Metrc\u00a0<\/a><\/u>system, a track-and-trace compliance system designed to monitor cannabis as it moves down the supply chain, and the implementation of further testing requirements, the future looks complicated.<\/p>\n \u201cIf Metrc comes online at the same time roughly as Category III testing [which will further increase pesticide testing for California producers] is implemented\u2026 I have no doubt recalls and the amount of product moving back and forth in the supply chain, that could be a potential challenge,\u201d Maritz said when asked about how pricing could fluctuate over the next few months.<\/p>\n Along with the outdoor harvest season<\/a>, regulatory factors had the biggest impact on price in 2018, so it\u2019s not a stretch to think that we\u2019ll see similar results in the first half of 2019. Maritz wondered if companies are set up to handle massive recalls and other factors that could make their way to the consumer at the register.<\/p>\n \u201cYou look at the first two waves of extinction, which [started on] January 1 and July 1, and we saw at both points there was a net drop in brands off shelves. That was, I don\u2019t want to say they were singular, but there weren\u2019t as many new and super challenging variables introduced at the time of each,\u201d said Maritz. \u201cWhereas now, there are multiple challenging variables.\u201d<\/p>\n Another factor Maritz believes could hit consumers is software \u2014 specifically the point of sale systems, which facilitate transactions between retailers and customers, that need to integrate seamlessly with the Metrc system. \u201cIt\u2019s not even about not being ready,\u201d she said. \u201cMaybe they\u2019re missing something, a mistake, a kink, a bug that they don\u2019t even know about. Because nobody has been able to proof it. There are dozens of point of sale solutions.\u201d<\/p>\n Outside of the forthcoming regulations, Maritz pointed to another component she believes could have the biggest impact on the prices consumers pay in the not-too-distant future.<\/p>\n \u201cWhat if rescheduling happens in the next few months?\u201d said Maritz. \u201cHey, why not? There is literally nothing that says it couldn\u2019t happen. And if that does happen in the next few months, and I\u2019m not saying it will, it happens at roughly the same time Category III testing comes online and the Prop. 215 January 9 date, and Metrc comes online and all of a sudden it\u2019s rescheduled? Everyone floods into the industry.\u201d<\/p>\n TELL US<\/b>, what price changes on your favorite products did you notice in 2018?<\/p>\n The post First-Ever Legal Cannabis Price Index Released<\/a> appeared first on Cannabis Now<\/a>.<\/p>\n
Apart from state regulators, few have a more expansive a view on which products pass through dispensaries on their way to consumers than the sales trackers from BDS Analytics,\u00a0and now they\u2019ve used that information to compile the industry\u2019s first-ever price index, a move they announced Tuesday. According to\u00a0BDS, the newContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[200,3730,148,50,6731,6732,21,170,687,6733,1419,185,98],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/31358"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=31358"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/31358\/revisions"}],"predecessor-version":[{"id":31359,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/31358\/revisions\/31359"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=31358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=31358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=31358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\n
\nRead More: First-Ever Legal Cannabis Price Index Released<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"