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Investment Opportunities In The Marijuana Business

Submitted by Marijuana News on Mon, 03/30/2015 - 08:00

Hundreds of Millions of dollars are pouring into the legal (or at least semi-legal) marijuana industry. Is it too much investment for the market potential? Here are the critical issues to consider.

Current Marijuana Users Already Have Their Suppliers

Let’s say that you smoke or otherwise consume marijuana with some regularity, at least once a month. You have a source. It’s always a challenge to get a buyer of any product to change to a new seller. Very few current users will be eager to switch just because the old supplier is not legal.

Lower prices could induce some switching, but legality does not always mean cheapness. In Washington state, the taxes pile on at 25 percent of every sale, all through the supply chain. Think about what would happen if your bread were taxed the same way. The farmer sells wheat to a grain silo and a 25 percent...

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URL: 
http://www.forbes.com/sites/billconerly/2015/03/27/investment-opportunities-in-the-marijuana-business/

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