While many hard drugs such as cocaine, heroin, methamphetamine and the like require an arduous production process, cannabis can theoretically be grown by anybody with adequate opportunity. Although not everybody has the capacity to grow high quality cannabis worth selling at a legitimate dispensary, everybody has the opportunity to grow it. Thus, police efforts at eradication of the cannabis market are futile since the growing and distribution system is so diffused and dispersed. Natty explained to me on the first day that I visited the collective, that he was not a drug dealer, and they did not sell drugs to drug users. Natty made it clear that it was a collective of individuals that grew cannabis for medicinal purposes together for the greater good. He also claimed that the people they attended were patients and that they never sold cannabis, they only “requested donations.” Natty was seriously afraid of being arrested by the DEA and took extra precautions to make sure that did not happen. When first donating to the collective the employee typically provides the new patient with a one-hitter quitter piece , jolly rancher edibles, a pre-rolled joint and a coffee mug. The jolly rancher edibles’ main function is to prevent cottonmouth and make the high more pleasurable. The jolly rancher edibles rarely have enough THC to produce an actual high. It is quite possible that there is no THC present and the jolly rancher acts as more of a placebo when already under the influence. Pieces range from the free one hit pipes the collective gives away free, grow vertical to the 500-dollar work of art pieces molded for beauty and not functionality.
The relatively expensive 200-dollar pieces tend to be the most functional and highest quality pieces.As is common in illegal markets, the cost of cannabis does not reflect its actual value. For experienced growers, four cannabis plants can yield approximately one pound of usable bud. The Kings explained to me that they had a little over 40 plants in the grow operation. A substantial yield could be brought about by this amount of plants. This is in turn sold at a huge mark up to the patient/consumer. A pound of cannabis can be sold on the market for approximately $1,300-$1,900 depending on the quality and other factors. Top Shelf cannabis sells for $20 a gram, $50 an eighth, $100 a quad, $175 for a half ounce and $350 an ounce. Natty told me these are the typical quantities sold at the dispensary. The dispensary typically buys cannabis from growers and distributors on a pound or half-pound basis for approximately 1,500 dollars per pound depending on the quality. However, he stated that he has sold up to half a pound to a patient before. An ounce by itself would take a heavy smoker a while to finish. A half a pound, which is 8 ounces, is far beyond what any individual patient would use by himself. These people likely sell to their friends, or sell on the illegal market. Bottom shelf product can retail for as low as 10$ a gram. Edibles range from $5 for suckers and drinks to 5$0 oils. Most edibles however, are around $20 for a chocolate bar, cookie, brownie or some other type of candy type snack.
As stated earlier, it is common at the collective to “hook it up” and provide more cannabis per bag. Thus, a first time patient many times is provided another gram on top of what they purchased. Likewise, frequent patients are likewise “hooked up” on a relatively frequent basis. As one can see by the prices, the markup for bud is quite high. For example, the markup from a pound to an ounce is 373%. The markup from pound to Quad is 426%. The Markup from pound to gram is 653%. As one can see, dispensaries sell cannabis for an astronomical markup. In fact, the markup for cannabis is so high; it makes one question how the Kings and other dispensary owners are not millionaires. The answer lies in the cost of operating a legal marijuana dispensary. As stated prior, the medical marijuana industry is laden with risk and unique expenses not incurred by street dealers. The first substantial cost is the rent. The rent at the dispensary is approximately $10,000 a month. Additionally, the corner hires a private security firm to patrol the dispensary at all hours of the night and be present during the day. Moreover, the Kings use another private security firm to transfer the money each night from the dispensary to an unnamed bank where the money is dispersed to the Kings and the other original investors in the dispensary. Likewise, the employee pay, electricity and the cost of the accounting software that they use makes it so the Kings make simply enough money to have a regular middle class lifestyle. Notwithstanding, the prices are loosely followed and it is common practice at the dispensary to add an extra gram and provide the customer with a gift such as a jolly rancher or a pre-rolled with a purchase.
Ironically, the cost of recreational cannabis in Colorado is more expensive than both medical marijuana and the street counterpart . One of the major reasons recreational cannabis is so expensive in Colorado is because of the high taxes levied against recreational pot shops. Likewise, the limited number of recreational pot shops, and the lack of economic competition that came with it were able to keep prices high. However, Frank Bi of Forbes magazine points out that there is a correlation between marijuana legalization and price. In fact, in Oregon, where cannabis is legal for recreational use, the cost of an ounce of high quality cannabis is only 204$. That is almost half the price found in North Dakota, which has no recreational or medical marijuana system . As would be expected in any industry, especially an illegal industry, sellers typically factor in the cost of doing business into the the final product price. It is a frequent belief among cannabis users that medical marijuana prices would be lower than street level prices because the illegality is taken out of the equation and thus legality should reduce cost. However, the high cost of running a dispensary has led to prices matching illegal street prices. Consequently, medical cannabis has not led to the reduction in prices that many proponents of legalization had hoped.TBC and High-C were the group members that sold bud outside of the collective. They worked as a delivery driver for the collective for patients who, for whatever reason, did not want to or were unable to, come to the collective, or did not want to be seen, vertical grow systems or just did not want to deal with the collectives. A police raid on a collective is an ever present possibility. Yet, TBC did not discriminate when selling. He never stood on the street corner and slung, but if a friend did not have a recommendation, he would sell to him regardless. He told me he never sold to people he did not know if they did not have a rec. Moreover, this was not his only job. TBC seemed like they did this as a side project to make money. Or, to be hard and tell people he “slung nug,” as he liked to refer to it. His main job was waiting tables at an upscale restaurant in Newport Coast. He made tips and lived off those earnings. Delivery driving was more of a hobby. The minimum amount the Kings would deliver was an eighth. TBC told me it was not worth it for him to waste his gas for anything less, especially if it was a far delivery. High-C and TBC would take turns as delivery drivers. They explained to me that they only are called for approximately 10 deliveries a day. Twenty on a good day and those are usually the weekends. They told me they stopped delivering to new patients after 7pm, but that they would deliver to frequent patients or people they knew until 10pm. TBC explained, “If I don’t know you, I’m not showing up at 10pm. That’s shady.” When they show up to deliver to new patients the procedures are similar to that of going to the dispensary, a picture of the patient’s license and rec are taken. In addition, they make the patient fill out the new member paperwork. Typically, when an individual calls the collective, they require picture messages of that information ahead of time to make sure the person is an actual medical marijuana patient. The procedure is necessary for verification and signature purposes. Although he rolled around with scales, and different baggies , TBC never feared being arrested. Both TBC and High-C had recommendations and medical marijuana identification cards . The MMIC puts a user in a statewide database and allows law enforcement to verify the validity of a patient’s recommendation.
Thus, the MMIC serves as an authorization document to grow, possess, transport and use medical marijuana. Recommendations let law enforcement know the doctor recommended cannabis to treat an illness. A medical card helps confirm your identity as a legal user. Moreover, the MMIC puts you in a statewide database so if the cops ever pull you over you have documentation of your right to consume cannabis. High-C told me about a friend of his who got a rec from a doctor at a cannabis convention and started growing and got rolled by the cops with a bunch of weed in his car. He said his friend’s rec did not work when the cops tried to validate it and that the doctor was a fake or had gone out of business. As a result, his friend served time in jail for drug trafficking. This would not happen with a MMIC, as the patient would automatically be registered in the system and not have to rely on a doctor’s office to confirm the legitimacy of the patient’s rec.As part of the way the dispensary sought to establish a rapport with the patients, The Corner would put on monthly growing demonstrations for their patients. As stated earlier, in theory, dispensaries are designed to be cooperatives put together by patients that use cannabis as medicine. Dispensaries do not sell drugs, they pull together the possession of all of its members collective ability to possess cannabis , and distribute it for free to patients who do not have the ability or know how to grow it themselves. The cooperative only requests donations for the medical cannabis to help keep the cannabis functioning and afloat. The growing demonstrations were designed to teach the patients how to grow cannabis on their own. The Corner also sold hydroponic systems, baby, and teenage cannabis plants. The teenage cannabis plants sold for approximately 25$. It was expected, as Natty pointed out, that the individual with no experience growing would mess up a couple of plants on their first try, and that the demonstration classes helped with immersing patients into the collective. The plants were typically clones, yet they also sold seeds for the more experienced grower, or the new grower that wished to dive head first into growing. However, the demonstration classes and pot plants served another purpose. Natty explained that as former patients became experienced at growing cannabis, and particularly high quality cannabis, that the dispensary would actually buy cannabis from the patients at a discounted price and sell it at the dispensary. This is technically how dispensaries are theoretically supposed to operate. Natty told me this helped to keep the cost of the cannabis down while helping cannabis patients make some money on the side and create a sense of community and to create a real collective. This, Natty suggested, made them different from the typical dispensary and created continuity in the customer base and loyal customers. The Corner made sure to never have more than a few cannabis plants on hand at any given time. Although California medical cannabis laws allow for what is seemingly a limitless amount of plants, federal agents may raid and have raided dispensaries for carrying too many plants or cannabis at one time. Likewise, the Kings grow-op is not enough to sustain the needs of the dispensary.