For Legacy growers looking to enter the legal recreational market, benchmarking cannabis against legal recreational cannabis is the first step in determining the appropriate pricing for your products. Knowing the quality and pricing of products in the marketplace is key in creating a realistic business model. There is nothing more important in a business model than the First line on the Income Statement, which is Revenue. Based on Pricing, the Cannabis market can be broken up into 3 categories; Value, Mid and High-end.
Value Segment is categorized by sub-$5 a gram and typically sold in 28 grams. The major players are Big Bag O Buds, Pure Sun Farms, Daily Special, Good Supply, Tweed, Back Forty, Table Top, Redecan, Hexo, Spinach and Versus, to name a few.
Mid-segment is categorized by $6 to $10 a gram pricing. The major Brands are BZAM, Spinach, Tribal, Haven St., Next Friday, MTL Cannabis, DOJA, Wagners, Sundial, and General Admission …. The Quality of the cannabis in this market segment can be as good as the High-End segment.
High-end segment is characterized by the $11 to $17 a gram segment. The major players with the best products are Next Friday, Carmel, Msiku, Qwest, Simply Bare, Cookies, Ghost Drops, Dunn Cannabis, MELT, Whistler Cannabis, and Broken Coast.
We recommend benchmarking against Tribal (low cost with craft quality effects), Next Friday (the cheapest best mind melting quality craft), Organigram, Whistler Cannabis and Broken Coast (expensive but excellent), and Big Bag O Buds’s Pink Cookies (ultra value with craft quality effects).