Image: Ndispensable via Unsplash
Some states provide data on the average retail price of cannabis flower in their markets, making it possible to compare these figures with Cannabis Benchmarks’ wholesale price assessments. This comparison helps to estimate and analyze typical retail markups, revealing that these markups can vary widely between different markets.
The table below shows average wholesale and retail flower prices for October 2024, along with the calculated retail markups in each market. It illustrates how retail pricing and markups can vary significantly between markets.
| STATE MARKET | RETAIL MARKUP ($/gram) | RETAIL MARKUP (%) |
|---|---|---|
| Connecticut | $5.64 | 101% |
| Illinois | $3.97 | 81% |
| Maine | $3.56 | 95% |
| Maryland | $4.05 | 73% |
| Massachusetts | $2.42 | 96% |
| Michigan | $1.12 | 75% |
| Oregon | $2.07 | 135% |
| Washington D.C. | $2.57 | 39% |
NOTE: At the time of publication, the states of Illinois and Massachusetts had not yet released October retail price data. The figures in the table for these states are trailing three month averages.
The most dramatic observations include Oregon having a retail mark-up that is three times that of Washington, D.C., and the significant difference between the mark-ups in Oregon and Michigan relative to their wholesale prices.
Across these eight markets, for the month of October, the average wholesale price mark-up was 87%, down from 92% in September.
The following line chart illustrates that fluctuations in wholesale flower prices can contribute to substantial variations in retail markups within individual state markets over time.
Over the course of the study period, for the eight markets analyzed, the average retail mark-up ranged from 76% to 95%. The months with the highest average mark-ups have been summer months.
For the month of October, Oregon (medium blue dotted line), Connecticut (red dotted line) and D.C. (red-brown dotted line) experienced the largest declines in margins; while Massachusetts (teal dotted line) and Maine (green dotted line) had the largest increases.
The black line representing the overall average shows relative stability in the 80% to 90% range, with minor fluctuations. While individual markets experience variability, the broader trend across states remains relatively constant. A dip in April – perhaps attributable to 420 discounts – is noticeable ahead of the climb into the summer months.