Cannabis wholesale prices are dropping in the most mature and competitive U.S. markets, and lower-cost cultivation capacity is expanding even as some markets experience a supply glut.
Cannabis Benchmarks provides wholesale pricing data by method of cultivation and state to assist growers navigating markets characterized by rapid technological innovation and regulatory change.
Is a cultivation operation commanding a premium or forced to discount its products relative to its peers? How does this shape perspectives on entering into long-term sales contracts and forward arrangements?
- Compare your wholesale business to your peers
- Understand how your products perform against the industry average
- Benchmarks sales performance and create an effective incentive plan for your sales force
- Develop and deploy a long-term sales strategy
How is the supply mix and timing of yields changing? How might this impede or enhance ability to move product, and what is the likely impact on inventory and storage costs?
- Gain clarity on seasonal sales patterns
- Anticipate and manage changes in revenue
- Understand competitor position and market share
- Estimate and plan for changes in inventory needs
Changing regulatory requirements, seasonality and incremental capacity additions are among the factors driving price swings and declines. How are hedging and other methods of price risk management being used to ensure sufficient cash flow to fund operations?
- Plan for market capacity and pricing fluctuations
- Measure and manage earnings and cash flow at risk
- Build dynamic price models into budgets
As emerging commodity markets mature, wholesale prices tend to move toward the marginal cost of production. Do growth plans include budget assumptions and forecasts that accurately reflect historical and projected price trends? Have the economics of expanding into alternate geographies been properly considered?
- Plan for different potential future revenue scenarios
- Clarify growth plans and budgets
- Understand P&L impacts of operating in different markets