An oversupply of the cannabis flower has caused major retail competition between dispensaries in Michigan. Jerry Mullen, owner of Greenhouse Walled Lake, says cannabis prices have dropped about 50%, causing businesses to close.
“Prices are cheap,” says Mullen. “There’s an oversupply and the demand is still there, but there’s so many growers and processors in the market and they’re all cannibalizing each other. Then what happens is some of these retail owners, they want to put each other out of business and some have started price wars.”
Consumers benefit from price wars because of low and competitive prices, but Mullen says the benefit is only short term. Low cannabis prices can cause businesses to close and less competition in the market will raise prices back up.
