One of the most important factors in legalizing a regulated cannabis industry is setting the right price. The legal market must be competitive in price with the illicit market otherwise many consumers will just continue buying from their current source. Canada is experiencing this problem right now as they legalized recreational cannabis this week and they already have consumers complaining that the price is too high and they'd rather continue buying on the black market. While there are other incentives to switching over and buying legal cannabis, it's surely going to be a slower transition into the stable legal market until Canada's prices become more consistent around the nation. Officials are saying some cities and provinces are able to find a gram of bud for $6.99 CAD ($5.38 U.S.) while others must resort to $13.99 CAD ($10.77 U.S.). But while many have complained and may stay with their illicit source, there's no doubt that many more are excited to purchase cannabis legally and will deal with it's up's and downs as they come.
“Pricing legal cannabis near the illicit market price, or even slightly higher as our data suggests, is an important factor in minimizing purchasing from the illicit market,” Michael Amlung, a behavioral neuroscience assistant professor and faculty affiliate of the Michael G. DeGroote Centre for Medicinal Cannabis Research at McMaster University told Global News.