Article by Patrick Cain, Global News
Sellers in the legal market ask about $10 a gram, on average, and rarely offer discounts of any kind.
StatsCan’s survey of grey-market mail-order marijuana sites showed that very small purchases, under two grams, were in line with the legal market at about $10.
But the more a customer was willing to buy, the more prices fell: at 28 grams or more, the sites charged $5.86 a gram in the third quarter of this year. In late 2018, they were charging $4.83.
“There is a slight increase in the last quarter for Web-scraped prices,” says Michael Armstrong, a business professor at Brock University. “The thought that came to mind is that if there has been a price increase on the legal side because we still have shortages on that market, maybe some of the black market suppliers have actually bumped their prices up a bit.
“They can still price under the legal market, but take a little bigger margin.”
Offering volume discounts makes sense in many businesses, but especially illegal ones where every transaction carries a risk for the seller, he says.
“Like in other industries, there’s a fixed cost per transaction, whether that’s shipping and handling, or administrative. There’s a a fixed cost of doing an illegal transaction and taking the risk.