Marijuana users wonder how dispensaries are closing in Denver

Dear Stoner, How are dispensaries closing in Denver? Give me one of those licenses. The weed sells itself.
Ed

Dear Ed, Opening a dispensary and achieving success is not impossible, but it is not as easy as it seems. With just over 200 different dispensaries and the most growing operations in the state, Denver has always been one of the most competitive markets in the country, but now it’s oversaturated. Medical marijuana sales in 2022 are down more than 43% from last year, according to the state Department of Revenue, while overall marijuana sales are down more than 20%. Wholesale flower prices have also plummeted, falling more than 46 percent on average from January 2021 to April this year.

click to enlarge Buddy Boy recently closed all seven of its Denver dispensaries.  - SCOTT LENTZ

Buddy Boy recently closed all seven of its Denver dispensaries.

Scott Lentz

Recent inflation has limited customers’ spending money, but cannabis has never been cheaper in Colorado, where the plant is no longer a novelty now that nearly twenty states have legalized recreational marijuana and even more allow marijuana sales. medicinal. Add in license and fee compliance, a 70+ percent business tax rate on income thanks to federal prohibition, and continued competition from other states and the gray market, and you’ve got a slim profit margin, Ed Dispensaries need to sell a lot of weed to stay open, and tourist dollars aren’t what they used to be.

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