Cannabis prices can feel like a moving target. One day your favorite eighth is $35, the next it’s on sale for $20, and next week it might be $50. So what gives?
Let’s break down how cannabis is priced, why those prices change, and what really goes into the cost of that joint in your hand. So, what is the price of weed in your state?
How Cannabis is Priced
There’s no one-size-fits-all pricing model for cannabis — but several key factors always come into play:
1. Supply and Demand
Classic economics. If growers harvest a massive crop and demand dips, prices drop. But if crops are hit by pests, mold, wildfires, or licensing issues — and demand stays steady — expect prices to spike.
2. State and Local Regulations
Every state sets its own rules and tax rates. In California, taxes can add 30% or more to your final price. In Oregon, where supply is high and taxes are lower, top-shelf flower might cost half as much.
3. Production Costs
Indoor grows mean higher utility bills, more labor, and specialized equipment — which means higher prices. Outdoor cannabis is cheaper to produce but riskier and more seasonal.
4. Quality and Branding
Just like with wine, craft cannabis fetches a premium. Lab testing, terpene breakdowns, award-winning strains — they all add value. Budget weed skips the bells and whistles.
5. Retail Markup
Dispensaries have overhead: rent, staff, security, and compliance. Markups vary but usually land between 50–100%, depending on location and competition.
Why Prices Fluctuate
So why does the same strain cost more in July than it did in March?
Harvest cycles: Outdoor harvests hit in fall — that’s when prices usually drop.
Testing or licensing delays: These bottlenecks can temporarily choke supply and drive prices up.
New markets opening: When a state legalizes, early demand usually outweighs supply. Prices start high, then fall as production catches up.
Aging inventory: Cannabis loses potency over time. Shops cut prices to move older stock.
What You’re Really Paying For
Let’s say you just paid $40 for an eighth. Here's where that money likely went:
Grower/Cultivator: $8–12
Processor/Lab Testing: $3–5
Distributor/Transport: $2
Retailer/Dispensary: $10–15
Taxes (State & Local): $10–15
That’s five layers deep — and each one adds cost, compliance, and convenience.
What About the Black Market?
Even in legal states, some folks stick with their plug. Lower prices, no taxes, and no red tape. But the risks are real: no lab testing, no guarantees, and no legal protections. What you save up front could cost you in quality — or worse.
Final Hit
Cannabis pricing isn’t random — it’s the result of a still-developing industry balancing supply, demand, politics, and regulation. Whether you’re buying craft flower or budget shake, it helps to know what goes into the cost and why it shifts.
Shop smart, stay informed, and always ask yourself: am I paying for quality — or just a flashy label?