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Colorado and Denver weed tax passed

barnyard

Member
no doubt Hydro....and being able to talk openly about growing with your friends and neighbors makes all the difference in the World!
 

TheCleanGame

Active member
Veteran
Just stopped in to say 'again' to the jokers (ignorant dimwads) that passed this...

BWAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHA! Way to shoot yourself in the leg, knee AND hip... all at the same time.

Greedy F'ers are gonna get what they deserve. lol I'm predicting they would have collected about 3-4 times the amount of taxes they're going to get... if they'd just put in something logical like a 3 or 4% tax.

Bunch of friggin :peacock: dorks thinking they're all 'something' when as far as this subject is concerned... they're 6' piles of ignorance. *shrug*

Keep it Clean! :D
 

Jhhnn

Active member
Veteran
It's important to realize that the price of cannabis has more to do with what the market will bear than the price of production. It wouldn't be a staple of the black market if that weren't true, if large margins didn't exist. If high taxes raise the bottom line for consumers beyond that point, then large growers & retailers will take lower margins, simply because they can, because it's what they have to do to stay in business.

Like it or not, legalization favors industrial scale growing, particularly greenhouse and eventually outdoor growing. Economies of scale are enormous. Margins for other agricultural products are much smaller, and there's no reason we should expect it to be different for cannabis. The bottom line price for consumers may well drop, even with high taxes. The price of liquor fell dramatically with the end of Prohibition, for example.

Much of what's happening wrt personal growing in some Med states & Washington is an attempt to assert greater control over consumption & distribution in a truly authoritarian & repressive fashion, the opposite of what legalization should do. That's not possible under Colorado's A64, where consumers get to balance the price, convenience & selection of retail cannabis against growing their own & medical, as well. Retail cannabis has to compete against that to be successful, and I think it can, although it'll force most small growers out of the market, one way or another.
 

TheCleanGame

Active member
Veteran
It's important to realize that the price of cannabis has more to do with what the market will bear than the price of production. It wouldn't be a staple of the black market if that weren't true, if large margins didn't exist. If high taxes raise the bottom line for consumers beyond that point, then large growers & retailers will take lower margins, simply because they can, because it's what they have to do to stay in business.


You aren't 'hip' with the industry then...

The industry is already overburdened with legislation that ends up costing the grower/operation more money.

Add on licensing and other fees...

Add on employees and insurance and blah blah blah... you're looking at some serious cash to run an operation INSIDE... (lots of this will change when they're allowed to grow outdoor)

That 'margin' you're talking about has already been eaten up. It's cool to work in a grow but nobody worth a crap will do it for peanuts.

So what's going to happen? These producers are going to have to produce $20 1/8ths that sell for $30 WITH tax or they're not going to make much.

What's it take to make 'produce' cannabis that cheaply? Cheap labor (crappy weed) and lots of pesticides to control the effects of cheap labor (crappy weed).

So there's going to be a LOT of crappy weed on the market come January and beyond... for a high price.

Live in Colorado? LOL Grow your own "Cannabis" and leave the "crappy weed" for the out of state looky-lou's... :tiphat:

Keep it Clean! :D
 

Jhhnn

Active member
Veteran
You aren't 'hip' with the industry then...

The industry is already overburdened with legislation that ends up costing the grower/operation more money.

Add on licensing and other fees...

Add on employees and insurance and blah blah blah... you're looking at some serious cash to run an operation INSIDE... (lots of this will change when they're allowed to grow outdoor)

That 'margin' you're talking about has already been eaten up. It's cool to work in a grow but nobody worth a crap will do it for peanuts.

So what's going to happen? These producers are going to have to produce $20 1/8ths that sell for $30 WITH tax or they're not going to make much.

What's it take to make 'produce' cannabis that cheaply? Cheap labor (crappy weed) and lots of pesticides to control the effects of cheap labor (crappy weed).

So there's going to be a LOT of crappy weed on the market come January and beyond... for a high price.

Live in Colorado? LOL Grow your own "Cannabis" and leave the "crappy weed" for the out of state looky-lou's...

Keep it Clean!

Lots of nay-saying & projection in that.

I think you underestimate the scope of the vision held by many entrepreneurs, and also the willingness of investors along with the effects of economies of scale. Large operations can attract horticultural specialists with advanced degrees & decades of managerial experience, as well.

Licensing fees & so forth shrink to insignificance when talking about very large operations, like greenhouses of 50.000 sq ft-

http://www.aspentimes.com/news/7425583-113/marijuana-county-lewis-application

Operating costs will obviously be a lot lower in warmer places, like Pueblo County-

http://www.denverpost.com/ci_23734602/pueblo-county-approves-marijuana-greenhouse

I grew up there, have family there, visit quite regularly. It's one of the sunniest places in N America. Jobs are scarce, too, and the cost of living fairly low. They're crying for work. Honest hardworking people with Ag experience won't be hard to find or keep for even half-assed decent money. It's much the same all along the Arkansas river valley, the San Luis valley & parts of the Western Slope.

Sunshine is free, water nearly so much of the year from irrigation ditches, still cheap pumped out of the ground, electricity a small fraction of the cost of indoor growing, with fertilizer & soil amendments cheap by the truckload.

Drying & curing will be accomplished scientifically, in temperature & humidity controlled rooms, sugar trim & popcorn processed into oil by industrial scale machinery, solvents 100% recycled.

Big doesn't necessarily mean "crappy", at all. I doubt that the big outfits will produce the very best, but that's not the point. The vast majority of outlaw boutique grown weed isn't that, either, not to mention unknown use of chemicals, short weight & the usual ripoff possibilities. When I go to the supermarket, there's not much "crappy" produce in the bins, even though it's all grown & processed on an industrial scale. I doubt that weed will be any different.

Not to mention that not everybody is cut out to be a gardener, certainly not judging from the used equipment on Craigslist. Some people can't keep spider plants alive.

Yeh, sure, we'll see how it works out, but I figure that retail weed will be a very good thing for average tokers if not at all for small outlaw growers. If the bottom line of retail is too much, then those small growers will continue on until the market adjusts, either by reducing taxes, producers & sellers making less, or some combination of the two. The way that producers will be able to profit on smaller margins will be to go big, which cuts the price of production enormously.

Meanwhile, Colorado residents who want better or cheaper are free to grow, basically unmolested. If you never sell, maintain the same security as an illegal grow, your chances of being bothered at all are basically nil.
 
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