Have you ever wondered what brands each retailer is selling?

One of the interesting dynamics of i502 is that retailers end up being located very close to each other.  Many retailers don’t want to carry a product that is carried in the competing store down the street.  Because of this, one of the top questions we get at the lemonhaze.com offices is: “What processors and brands are each of the retailers carrying.”

We went back and looked at 2016 to see what processors each retailer carried during the year.  Use the Map below to check any retailer in the state and see which processors they carried.  Select the retailer from the drop-down and see what rank they were for sales in 2016, how many different processors they carried throughout the year, and how many different cities from around WA these Processors came from. Have fun!

How should 4/20 effect marijuana sales?

It’s almost April 20, so marijuana lovers everywhere are preparing to light up in celebration. And there’s a lot to be excited about. Weed is becoming more widely legitimized as more states hop on the bandwagon to legalize it.  It seems like no one really knows the story behind how 4/20 originated, but it is big and Washington retailers are stocking up for the influx of customers that will be shuffling through their doors.

Luckily this is not Washington state’s first 4/20 since recreational cannabis was legalized in 2014. At lemonhaze.com we take look at the numbers and know what to expect.  In 2016, we saw a huge spike in customers with a 75.15% increase in customers.  However, due to 420 sales and customers only buying for the day, we also saw a 11.62% drop in the amount customers paid “out the door” per transaction.

 

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On April 20th we expect to see many more customers, but don’t be surprised when they spend a little less per customer.  Check out all the current pricing and what is selling at Lemonhaze.com HAPPY 420!

The Trouble With Canoeing Joints

The canoeing has got to stop. Before we go off on a tangent here, which we will, a few useful nuggets of information.

First off: this is an image of a canoe: Pack_green_angle_zoom

Second: our canoeing problem has nothing to do with an actual canoe. The top rated definition for canoeing on Urban Dictionary is: When a joint burns faster on one side. Can be quickly remedied by saliva on the finger and well placed tapping. This is the canoeing outbreak we are struggling with.

The canoeing of WA rolled joints is problematic for so many reasons:

  1. you are smoking a pre-roll and a HUGE chunk gets wasted thanks to canoeing
  2. you are smoking with a canoeing repair expert and now you have their saliva holding the blunt together for dear life
  3. you attempt to salvage the joint by applying your own saliva, but it causes the pre-roll to become a soggy mess and BOOM, the J is dead 🙁

An image is worth a thousand words UNLESS of course it’s an image that has more than a thousand words on it. So let’s demonstrate what a canoeing joint looks like IRL.

(Warning: the following image may result in discomfort and buzz-kill. Not suitable for sensitive adults.)

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Please note: the PCP (pre-roll canoeing problem) is not created equal. In fact – some marijuana brands do a better job at filling their pre-rolls. And kudos to them for taking on this monster. But this is far from over.

We must unite. Together. As a community. To address and solve world canoeing. It’s about time!

The impact of taxes on out the door pricing

By: Brian Yauger

In the wild world of cannabis, taxes play a big part in retail pricing. A frequent question we hear in the Lemonhaze.com offices is ‘How much are retailers marking up product?’. Looking at the data, we’ve seen that generally, the wholesale to retail markup is around 3x. Why? Well, taxes.

Take a look at an example below. In this example, the numbers used are taken from a product that has been listed on the Lemonhaze top charts

Example: 1 gram bag of flower
Retailer wholesale cost = $3.33
Double the cost = $6.66
Excise Tax (37.5%) = $2.50
Sales Tax (9.5%) = $.63
Total $9.75

In this example, taxes makeup approximately 1/3 of the price customers see listed on the menus and pay at checkout, with 1/3 going to the producer/processor via wholesale costs, and the other 1/3 going to the retailer.

The retailer markup in line with other industries. According to Shopify, “Most retailers benchmark their pricing decisions using keystone pricing, which is essentially doubling the cost of the product to arrive at a 50% markup.”

Given the above, a 3x out the door markup makes sense. Take away the added excise tax, and cannabis retailers still have the same overhead costs as other retail businesses (rent, payroll, insurance, etc.).

Of course, this is a rule of thumb, and products will vary based on sales, expenses, competition, etc.

We put together a fun tool to for you to explore average markup percentages around the state. Have a try, and don’t forget to check back with lemonhaze.com daily to see live product pricing from across the state, updated hourly till 4:20pm!

-Brian