Summertime … and the smoking is easy — and cheap in Michigan

Summer is a great time to be in Michigan. Our state becomes a paradise for a few months, and nothing pairs better with this than smoking dope. Cannabis retailers have relied on the increased tourism and general uptick in consumption to lift their proverbial tides and beef up their sales before the oncoming Croptober inventory surge, subsequent winter glut and post-holiday-season consumer spending slowdown that often lasts until 420. There’s always a lot of movement as the industry makes the best out of a period of increased consumer activity.

Michigan’s proximity to states without legal markets has also made the summer season synonymous with dollar signs. The Upper Peninsula and its stores along the Wisconsin border are joined by downstate border powerhouses Monroe and New Buffalo. Shocker: The legal dispensaries in these cities and others near the border are busy all year. But summertime makes the dispos sing with the increased tourist traffic as people flock into Michigan and as their own summertime consumption rises in their own states.

As the months turn hotter, so does the competition. Every day, cannabis companies large and small are closing. Retailers have shuttered in many markets, such as Battle Creek and Muskegon. These months have always been a time when producers and retailers ensure that consumers have a plethora of cheap options.

This summer is no exception. However, the market is a lot different. Producers and retailers are scrambling to deal with a turbulent market and wild overproduction of wholesale flower. In addition, the Michigan cannabis market seems to have hit its natural plateau. The industry recently topped California to become king in the nation’s legal dope game by volume of sales. This high praise for the state’s industry may prove to be short-lived: Legal cannabis sales have fallen flat in the last couple of months. Many industry insiders I’ve talked to recently think it’s possible that the cannabis market has reached a sales cap. In other words, consumers might never spend any more on cannabis than they are right now. 

As the market reaches maturity in size, the industry is still reeling from the fact that too many operators are producing too much cannabis. Even with this overproduction of raw cannabis, new grows are popping up frequently. This pressure has continued to drag prices down pretty low on the wholesale side. A lot of producers’ costs are at about $450 to $500 per pound for indoor cannabis, with greenhouse- and outdoor-grown flower regularly being sold for less than this.

All of these factors continue to drive flower prices into the ground, making it one of the best times ever for consumers to purchase legal dope. Even if you have a plug, go buy some OK-looking flower in a store and see how little you pay. The insane competition has given us a pretty good lineup of high-quality, low-priced flower that’s available to most consumers.

Even though the market is hurting, it’s a great thing that the average consumer can get affordable fire. The wild capacity upswing will be interesting to watch play out. There will continue to be better and cheaper weed out there. Manufacturers are getting better at growing and selecting high-yielding, high-THC strains of flower.

This is a good summer to try some new strains or something from a new manufacturer. The price will probably be good, and there’s a good chance that if it’s not the absolute cheapest thing on the menu, it will at least be top-shelf mids. As the market matures and producers continue to exit the game, I expect to see prices creep up a little, but for the most part, consumer tastes — and the price points to go along with them — are starting to be established.