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Dale Sky Jones of Oaksterdam University discusses the economic impact of legalized marijuana in Colorado.
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But let's get to the push for -- and -- tourism in Colorado.
Joining us now is dale sky Jones -- today and the university executive chancellor.
Dale you know the -- you teach -- -- business.
I really wanna know some specifics.
From Colorado because they've gone fully legal and they won't be able to go that by the weed and smoke it in Colorado -- -- -- that I've got to ask about prices.
I believe that you can buy up to an eight of an ounce in Colorado.
What would I pay if I would go to call -- some tell.
-- -- keep in mind that location location location is very important.
But right now in Colorado.
You're always going to pay.
A little bit more -- the smaller increments you go so you're looking at about 200 and and twenty to 250 dollars an ounce.
As an average.
If you try to drop that down more to recorder announced you're looking between 6075.
Dollars.
OK and so up an -- of -- -- which I believe is the legal limit for an individual purchase.
That will be 3540 bucks for an hates correct that's what you're looking at.
It well and it and realized to -- that you've got.
Various qualities so you have you -- to backtrack and you also have your boutique.
High quality Canada so.
There's a lot of folks that have quality programs for.
Low income people where they will drop the price of the ridiculously low so that those individuals that really that need and can hold on hold all the details call -- easily up to sixty dollars for something that is high quality what -- -- -- -- -- second what a second you telling me there is a discount for poor people.
Is there.
Well what I'm saying is that there are a lot of dispensaries that are currently set up predominately for medical -- patients that offer.
Discounts for low -- -- or individuals that have health issues yes.
I'm not saying that you can just walk in and automatically get a discount it's up to the individual businesses I just want to point out that there's a lot of businesses that have compassion programs -- for the very sick.
Yep.
Discount -- people -- -- interest in -- who have really different let's not what's the profitability.
If it's forty bucks for an eighth of an ounce or so let's let's go with 250 dollars for -- full ounce of -- -- is the profit and what's the profit percentage in that.
An ironic that starts I'm sorry I'm -- I should be more specific that let me break this down.
For the retailer so to speak.
What kind of profit of they gonna make on the sale of one ounce of week.
For the -- -- the creativity -- the pharma if you like what they have profit out of that 250 dollars -- break it all down for us.
What's interesting about Colorado and what's different about Colorado.
Is that they are required currently to -- 70% of their own Canada -- so the producer is the seller.
You kinda cut out the middleman there and you also cut out.
An opportunity for the candidates to get outside of the circle.
Those dispensaries cannot actually see Canada's from their patients the way we do here in California.
They can only seek.
-- extra 30%.
Of their stock from other dispensaries.
So if you go somewhere like Washington.
Where you have a grower -- producer that is separate from the retail market.
They have an opportunity to taxable.
I would cultivation and then -- and with a seller.
And in fact also an excise tax usually so you're looking at 25%.
At each of these locations.
You have.
-- -- 5% tax you're looking at.
It's almost impossible to make much money if you are over -- fleeting.
What the black market is in the Rand rants did a study on that saying if you overtaxed Canada us.
That you're actually encouraging the black market -- start up again.
So this is what Colorado did right.
OK yeah I don't -- -- I -- I realize that -- the current model as a second homicide -- -- market Oscars and go back to Colorado.
The the -- is probably the grow.
And death in -- in Colorado.
You'll gonna make a -- more money.
The profitability.
Is enhanced significantly.
Because of the way Colorado was struck to the -- now.
It it's you have a a greater opportunity.
To not make a profit yes but I also want to point out that Colorado has very burdensome.
Well which shall we say record keeping you actually have to have a camera appear -- this seat all the way to handing it to the patient.
An and while they've relaxed some of the standards as far as it being.
Live -- observed by officers 24/7.
-- you still have to keep record of all of this -- hold excellently expense.
Seneca Oklahoma and all of that got I got it all -- item it's much wanted to Tyler -- -- -- to focus on the money via okay I'm I'm I grow up.
And I sell it in Colorado legally.
250 dollars an ounce what's the tax on that.
Right now in Colorado you're actually only looking at sales tax and this is also Colorado did -- -- I believe it's seven point 2% in Colorado for sales okay.
Okay hold on -- right.
-- little problem although although I've got it.
-- -- -- -- -- -- A -- sudden a 250 box.
I add on the sales tax on top of that 250 dollars right so ultimately if five grown -- and I'm selling it.
Despite all the record keeping requirements are coming up pretty high profit margin on my 250 bucks an ounce on the -- If you run a tight business you do Stuart you can make some good money in this industry if you do it well yes and look at me.
All right dale sky Jones poll that was good thank you very much and I want to precise numbers you give it to thank you much indeed coming up time.
