Recreational marijuana being legal throughout Canada brings with it more than a few questions, one of them being how this will affect the overall economy. While predictions have been made regarding how this business venture will take off, it’s estimated that within one year, recreational marijuana will create a profit of between five and eight billion dollars. It’s said that the first quarter will profit almost one billion alone. But is this profit margin something that will last once the shine of legalized cannabis wears off and it becomes the norm? We don’t know yet, but if it does, here’s how it could potentially impact the Canadian economy.
Contents
Is It a Get Rich Quick Scheme?
Getting into the game early, whether that means investing in marijuana or becoming a producer yourself, you’re much more likely to make a profit from it as the legalization of it grows closer rather than afterwards. While cannabis was one of Canada’s best-performing stocks in 2017, that was mostly due to the anticipation of the October 2018 legalization. However, with the legalization came a decline in the stocks overnight, slowly rising again as the days passed.
If the relationship between either side of the spectrum, between consumers and producers or sellers, becomes too tense due to inflated prices or low inventory, stocks will look much less appealing to cannabis investors. However, with the harsh enforcement of federal marijuana laws throughout the United States, it may create large opportunities for Canadian cannabis companies when selling to an international market.
Buying and Selling
Both buying cannabis and selling it in Canada comes with several rules in order to keep the system intact. However, there’s a mixture of both public and privately owned marijuana distribution sales, including through online retailers, that works to benefit as many consumers as possible. Prices for recreational marijuana range throughout the country, from $6 to $13, depending on the province it’s purchased from.
What’s The Government’s Share?
Cities and towns that contain bigger cannabis producers will end up creating local jobs that will benefit the economy. There’s also the implication of sales tax on all marijuana products sold, taxing one dollar per gram of cannabis sold or 10% of the final retail price, whichever amount is higher. All revenue from government sold products are divided between Ottawa at 25% and the province or territory it’s sold in, at 75%.
Can Corporate Cannabis Ever be Craft?
In order to determine whether or not corporate cannabis companies can ever get to the same level of authenticity that craft businesses have achieved, we need to know what each term truly means. When we think about craft cannabis products, we understand it to be the part of this industry that focuses on creating smaller product batches, utilizing organic growing methods and having owners with a real passion for marijuana as a whole.
Corporate cannabis companies, on the other hand, focus on large scale growing facilities that can mass produce products as quickly as possible. It’s more so about speed and mass distribution and less about the natural practices and personalization that craft companies value. Now that you understand craft versus corporate cannabis, can corporate marijuana companies utilize craft methods? That’s what we’re about to find out.
Go Deeper into the Community
Taking the time to get to know your customers, as names instead of numbers, will fuel your desire to give them the best products you possibly can. Connect with the community and, in turn, you’ll learn what they’re looking for and how you can offer it to them. The cannabis patient community should always come first if you truly want to be viewed as craft more than corporate.
It Should be Your Passion
The key to success in the cannabis industry is passion. If you really love what you’re doing, the process behind it and how it’s helping others in the community, then you’re on your way to moving from a corporate to craft marijuana business. Passion means you care about how your product is helping to change lives, much more than how much money you’ve made over the last month. Distributing top-quality products is your main priority.
Think “Smaller Scale”
Yes, cannabis is in higher demand than ever with Canada’s legalization of the substance. However, mass production for mass profit isn’t the answer if you’re looking to be a craft business. Smaller plant growth means more time and effort is put into the process, something customers will appreciate, especially when it produces a better product. Reducing the output scale is related to other production factors, like waste and plastic packaging materials, to help improve your overall carbon footprint in the environment.
Do the Work Yourself
Learning about the industry takes effort, meaning that you’ll have to get your hands dirty if you want to succeed and truly know the marijuana industry. Yes, you can hire experts, but if they do the work for you, how are you contributing to craft cannabis? You’re not, so work with the brilliant minds around you to determine how you can grow an amazing product for your cannabis community.
Author’s Bio
Colin Hegarty is a content writer for BreezeMaxWeb that helps businesses showcase their brand through enticing copy. When he’s not working, you can find him playing net in a local beer league or biking around the city.