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Marijuana Sales Have Doubled in 1st Month of Retail Sales, Says Business Leader

Friday, October 30, 2015

 

If your business is pot, then business has been good, according to Donald Morris, director of the Oregon Cannabis Business Council. Morris told GoLocal that marijuana sales at dispensaries have doubled since they were allowed to open their door to recreational marijuana customers. What’s more, Morris said that he expects the industry to see another period of growth in the near future.

“Business is doing very well. Most dispensaries are doing two-to-three times more business than they were before,” Morris said. “We have reports from members whose sales were roughly $1,000 or $1,5000 a day before recreational sales began who are now reporting $3,000 or even $4,000 a day.”

As GoLocal reported, the Oregon Retailers of Cannabis Association said the state sold nearly $11 million during the first week of recreational sales. Casey Houlihan, the association’s executive director, told GoLocal that while sales have calmed down since the opening week, Oregon marijuana retailers have seen a large sustained increase in profits since recreational sales began earlier this month.

“I think we’re seeing at least a two- or three-fold increase in sales across the board,” Houlihan told GoLocal. “For some stores, it may very well be five-fold or even ten-fold. When you increase a market from 70,000 licensed medical marijuana patients  [there are actually 76,723 medical marijuana patients in Oregon as of October 1] to 3.9 million Oregonians, that is going to have a big effect on business.”

Sales Skyrocket

Morris said that while the figure of $11 million that was reported by the Oregon Retailers of Cannabis Association “may be a little high,” there is every reason to believe that cannabis businesses are thriving.

“I think that figure can be sustained long term,” Morris said of the increase in sales. “On the first three days, we saw peaks everywhere, but then sales immediately fell off. We feel comfortable that businesses will be able to maintain sales at that rate of two or three times what they used to do.”

Aviv Hadar, owner of Oregrown Dispensary in Bend, said his sales continue to be high during the first month of recreational purchases. He said that roughly 70 percent of his customers are now recreational users.

“It’s actually been pretty surprising. I could not foresee demand being this high,” Hadar said. “I’ve increased my staff since recreational sales began. We now have 30 employees up from about six or eight when we could only sell to medical customers.”

Jonathan Modie, a spokesman for the Oregon Health Authority, the agency in charge of early recreational sales, said the state has not been tracking sales of marijuana up to this point. Modie estimated that once the state begins collecting taxes on recreational marijuana purchases in  January of 2016, the Revenue Department would begin to examine sales figures more closely to ensure businesses are paying their fair share of taxes.

Edibles, Other Products Could Cause Boom

Morris, of the Oregon Cannabis Business Council, said that he thinks another sales boom could be on the way for Oregon’s recreational marijuana business. Currently, recreational customers cannot purchase edibles, shatters, concentrates or any marijuana products other than seeds, immature plants or dried flowers. That is set to change next year, and Morris said he believes it will give the industry a serious boost. 

“Absolutely that will be a big factor and a big seller going forward,” Morris said of the sale of edibles and other cannabis products. “I think that most businesses will see sales jump up by another two or three times when edibles come on the market.”

Hadar said that customers in his store are already asking questions about edibles and other marijuana products, and agreed with Morris’ assertion that it will be a big money-maker for retailers.

“We’re seeing a lot of demand for edibles and concentrates. I think sales are only going to go up when those become available,” Hadar said. “I think people are going to absolutely lose their mind when they can buy cannabis in an extract or as a candy bar.”

Morris and Hadar cited the popularity of marijuana edibles in Colorado, where marijuana has been recreationally legal since 2014. According to the Denver Post, 45 percent of the state’s marijuana sales were edible products, and Morris said he expects that same demand to drive sales in Oregon.

“People want those products, particularly older consumers,” Morris said. “A lot of them have given up smoking because of health concerns, but still want to consume marijuana now that it’s legal. I think people will really respond when those become available, and businesses will really benefit from it.”

 

Related Slideshow: 20 Things You Need to Know About Buying Pot in Oregon

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Employers Still Can—And Will—Drug Test

Many of the state’s largest employers, including Fred Meyer, Intel, Bi-Mart and Dairy Queen, will still test for marijuana, despite its new legal status. Companies that employ heavy equipment operators are required to buy insurance, and typically require drug testing.

Often, even companies that employ workers who operate machinery while simultaneously employing workers who do not will test, as the company will receive a lower monthly deductible if they test all of their employees across the board.

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Only a Quarter-Ounce per Customer, Please

Dispensaries will only be allowed to sell a quarter-ounce of marijuana per customer, per day. Residents are allowed different amounts for travel and home storage.

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Child Proof Packaging

Dispensaries, in addition to their limits on sales per person, also must package their recreational marijuana in a particular way. It must be placed in an opaque bag that is smell and child-proof.

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Can I Grow Cannabis at My House?

Those with a green thumb will be permitted to grow their own marijuana for private consumption. They are only allowed four plants per person, however, and each must be obscured from public view.

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How Much Can I Have at My House?    

Residents will be allowed to keep plenty of dry marijuana (flowers or leaves that are ready to be smoked) in their home. They are allowed to store eight ounces, more than thirty times the purchasing limits, in their home.

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How Much Can I Travel With?

Traveling restrictions are stricter than regulations for home storage. Adults are able to travel with up to one ounce, or four times the purchase limit, on their person.

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Driving Under the Influence

Unlike the Washington law, which included attached regulations concerning driving impairment, Oregon’s law has more room for interpretation. 

Driving under the influence of marijuana is classified as a Class B Traffic Violation, which carries a presumptive fine of $260 and is not to exceed maximum fine of $2,000. The Oregon Liquor Control Commission has been tasked with researching the subject of drugged driving and presenting its finding to the Oregon Legislative Assembly no later than January 2017.

After reviewing the OLCC report, the state legislative assembly will decide whether passing more extensive driving regulations will be necessary.

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No Smoking in Public

Yes, marijuana is legal. No, that does not mean you can light up in the middle of the street. Consumption is only allowed out of the public view.

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Where will the New Tax Money Go?

Where will the tax money go?

Measure 91, the ballot measure passed last year that legalized marijuana in Oregon, stipulates that the tax revenue collected from recreational sales will be divided up in the following ways:

40 percent- Common School Fund
20 percent- Mental Health Alcoholism and Drug Services
15 percent- Oregon State Police
10 percent- Counties for enforcement of the measure
10 percent- Cities for enforcement of the measure
5 percent- Oregon Health Authority for drug abuse prevention

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Where You Can Buy Marijuana

Already licensed medical marijuana dispensaries will be allowed to sell recreationally beginning on October 1, although not every dispensary will sell recreationally.

For a full list of those that have been approved to sell to the public, click here.

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Not Everywhere

While marijuana is now legal for recreational use in the state of Oregon, some individual communities have passed laws banning recreational marijuana facilities from opening. Consumption will still be legal in these areas, but sales will not.

For a full list of cities that have passed these bans, click here.

Photo: Downtown Baker City; via Wikimedia Commons

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What to Do at a Dispensary

First time at a dispensary? No worries, said Meghan Walstatter, Owner of Pure Green Dispensary. Just ask plenty of questions to staff to ease all of your concerns. 

Photo: Pure Green Dispensary

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Budtenders-Bartenders for Weed

Have questions as you make your purchase? No problem, just ask your friendly budtender. The cannabis industry’s answer to bartenders, budtenders are knowledgeable about the different strains and types of marijuana and their effects and are ready and eager to help novice smokers.

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Cannabis Indica

Indica, along with its sister sativa, are one of the two main types of cannabis. Each has their own unique effects on its user. Indica strains are known for relieving physical pain and giving users a sleepy, lethargic feeling.

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Cannabis Sativa

Sativa strains are the counter to indica strains.They are known for as a more mental stimulation, giving users more creative and sometimes, more focus

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Hybrids

The best of both worlds. At least, that’s what hybrids claim to be. They combine the properties of an indica strain and a sativa strain, by allowing users to feel relaxed, but not sleepy.

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Bring Cash

While some dispensaries do accept credit card, most do not, according to Leah Maurer, Co-chair of Women’s Grow. Make sure to bring some cash if you plan to purchase some cannabis today.

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How to Store your Cannabis

Concerned about storing your new marijuana in your home around your family? Maurer said to store it as you would alcohol or prescription drugs, away from the reach of children and teenagers.

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Don’t Cross State Lines

It will still be illegal to transport marijuana across state lines. That restriction even includes those crossing the Columbia River into Washington, where marijuana is also legal. Marijuana is classified as a Scheduled I controlled substance, meaning that anyone transporting it across line is prosecutable by Federal agencies

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Make Sure to Talk to Your Kids

It's likely that children and young adults will see more cannabis, and cannabis consumption, now that recreational sales have begun. Maurer said to make sure you have an honest, frank conversation about the benefits and consequences of the substance.

 
 

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