I have a few updates to bring to everyone’s attention. A lot has changed in the past month and it’s important that we let you guys know what’s going on.
As of July 1, 2018, The Bureau Of Cannabis Control (BCC) forced dispensaries to clear their shelves of any product that was sold to them prior to July 1, 2018. For example, if a shop purchased any product on June 25, 2018, they could only sell that product for 6 days before they had to clear their shelves and dispose of the product. Yes, you heard correct, dispose, trash, ruin, whatever you wanna call it. Many shops were forced to throw $1,000’s worth of cannabis into various landfills throughout California. It was a sad day for cannabis, but keep in mind, many of these products were not “Phase 2” compliant for microbials, pesticides, and solvents. In fact, over 80% of the products on the shelves were failing for one of the previously mentioned categories. It was a bitter sweet day for many of us. Approximately 20% of the disposed product was amazing medicine that could have helped many people, but the majority was poison that was hurting them.
Over the next few weeks you will see shops start to fill back up with products from various brands you know and love, and others you’ve probably never heard of. The main aspect that will be shockingly different, is the price! With regulation comes an increase in costs. The cost of products will rise due to the rising costs of doing business for a cannabis distributor, retailer, manufacturer, etc. Here are a few examples of the rising costs:
1. Taxes: With regulation comes taxes, check out the link below to the BCC. You can see how much more taxes various cannabis businesses will have to pay in order to continue to provide dispensaries with their products.
2. Licenses, permits, and build out fees: In order to legally provide cannabis, businesses must be licensed, and receive permits to legally build out our place of business to be compliant with the State and city guidelines. This costs $$$$$
3. Testing: The cost of compliance testing from “Phase 1” to “Phase 2” increased significantly. However, the cost was not the only increase. Sample sizes increased as well. Producers now have to give up more of their products to be tested by the state than ever before. This costs $$$$$
4. Packaging: Distributors and Manufactures are required to place all products in state compliant/Childproof packaging. This costs $$$$
In leayman’s terms it simply costs a hell of a lot more to legally manufacture a gram of hash, or legally produce a pound of cannabis than it ever has before. It’s tough times, but we hope you can find comfort in knowing PaperPlanes planned for this, you shouldn’t notice a huge price increase for our products besides the new tax you pay to dispensaries and/or the State.
In addition to the price, you will also notice that some of our products has new packaging. We were forced to change all of our packaging to be tamper sealed and child resistant to comply with California regulation. Don’t worry, this is a temporary change until we finish our final packaging designs, set to launch early 2019.
I know a lot of these changes can be intimidating. Trust me, I get it. I had no idea what taxation and regulation entailed. They are regulating our cannabis more than our farmed vegetables. Its kind of absurd; but trust me, this will all change in time. Soon, you will have a surplus of so much cannabis in California that the price will drop very quickly. Keep in mind, Oregon growers were selling lbs. of outdoor flower for $300 this past year. That brought down the MSRP of cannabis to record lows in the State of Oregon. California will follow a similar path, but it will take a little more time as it is one of the largest cannabis markets in the world.
Be patient, soon all of your favorite products will be clean and back to the price they were before, or far cheaper.
BBC WEBSITE: http://www.cdtfa.ca.gov/industry/cannabis.htm#Distributors