Canada is set to become the world’s next marijuana hotspot.
As of October of 2018, it will be legal to buy and smoke marijuana across the country. Some provinces will be providing government-operated sales both via retail stores and online. Others will allow businesses to apply for a license for the legal sale of cannabis.
Despite this, the mail order marijuana is already alive and lucrative in Canada. Due to legal restrictions against Canada Post seizing mail, cannabis is already being delivered to customers in all provinces. As it becomes legal across Canada, these businesses will likely grow and gain more customers. In fact, it’s projected that marijuana sales will outsell liquor in Canada by 2020.
But if you’re running your own delivery service, or planning to start one, you need to think about prices. Once legalization kicks in on 17 October you won’t just be competing against other sites, but also new retail stores and government sales. Here’s a guide to the effective pricing of products for Canada Marijuana Delivery.
How much do Canadians currently pay for marijuana?
Not all pot smokers in Canada buy from legal dispensaries. Illegal street sales, dispensaries, and online sales are also widely used. Figures from Statistics Canada show average Cannabis consumer prices.
According to these statistics Canadians currently pay between $7.76 – $10.47 CAD for a gram of medical marijuana. Non-medical sales clock in lower at between $6.65 – $9.52 CAD per gram.
These prices can vary significantly depending on the province. The cheapest weed seems to be available in Manitoba at $7.32 for a gram of medical marijuana and $6.65 when buying for recreational use. Prices in the Yukon, Nunavut, and Northwest Territories range from $9.52 – $10.47.
Overall, Canadians pay $8.18 CAD on average for a gram of medical marijuana and $7.42 per gram for recreational use.
Price of government-sold legal marijuana
Currently, licensed medical marijuana dispensaries in Canada charge around $9.12 CAD per gram on average. This can vary depending on the strain, and greater discounts are available when buying in bulk.
It’s likely that Canada’s government-operated recreational stores in provinces like Ontario, New Brunswick, and Nova Scotia will reflect these prices. They may even charge more due to added taxes.
How much does mail order marijuana cost?
Marijuana delivery services should price according to their competition. While there may be cheaper weed available on the streets, most customers will be more willing to pay more to buy from a delivery service. It is often the safest and most convenient option.
When comparing some of the most popular online marijuana delivery stores in Canada, prices ranged from around $5.89 – $8.29 for 1 gram. This price mainly reflects the price per gram when buying in bulk, but a single gram can be purchased for around $7.20 – $12.
Most marijuana delivery stores sell in quantities from an eighth (3.5 grams) to an ounce (28 grams). Here is the average price for an eighth from popular marijuana delivery sites in CAD:
- 3.5 grams of Girl Scout Cookies: $32.40
- 3.5 grams of White Cookies: $30.25
- 3.5 grams of Bubba Kush: $33.25
- 3.5 grams of Gorilla Glue: $29.20
Prices can vary widely depending on the popularity and potency of the strain. An eighth can be found for anything from around $25 – $40. Around $31.20 per eighth is a good rule of thumb to follow.
How much do edibles cost?
Most online marijuana stores sell various forms of edibles, including cookies, gummies, and cereal bars.
The price of edibles can vary depending on the type, quantity, and amount of THC or CBD contained within.
For instance, a chocolate bar containing 300mg of THC could be found for $15 whereas a chocolate cookie with 50mg can be bought for $7. Cereal bars are priced similarly to cookies and gummies generally cost a little more.
Multi-packs are also available on many stores, with large packs of gummies costing up to $100. Prices on edibles can be very different and marijuana delivery services are best served by looking into their competition to price accordingly.
How much do marijuana concentrates cost?
Marijuana concentrates such as shatter, hash, and resin are also popular products for Canada marijuana-buyers. Much like other products, the prices of concentrates vary depending on the type and potency of the product. On the whole, they cost much more per gram than flower.
A gram of shatter concentrate usually costs around $35 – $45 CAD for a single gram on marijuana delivery sites. The price per gram is reduced when buying in larger quantities. For instance, an eighth of shatter concentrate can cost around $100 – $109 ($28.50 – $31.10 per gram).
The price for a gram of Moroccan Hash was around $16.20 – $20 CAD. An eighth can be found for approximately $56 – $60, giving approximately the same value per gram.
How much do CBD products cost?
Products such as CBD oil and capsules are largely in-demand for their medical properties. They can relieve pain, reduce anxiety, and alleviate the symptoms of terminal illnesses without producing the psychoactive effects of THC. Due to this, they are a commonly sold product for marijuana delivery services.
An ACMPR price overview of cannabis oils from licensed medical marijuana retailers in Canada found it cost around $1.49 for 10mg of CBD. The average cost for 10mg of THC was $1.01. For 1:1 strains with 10mg of CBD or THC the average price was $1.23.
Online prices can vary depending on the type of product, quantity, and levels of CBD and THC. For instance, a container of 10 20mg CBD capsules cost $35 in some places. A lot of stores also offer CBD edibles.
How much do cannabis seeds cost in Canada?
Canada’s marijuana legalization laws state that citizens can grow up to four plants in private. Marijuana-retailers will want to consider this fact, as consumers will be eager to buy growing equipment and marijuana seeds.
The price of seeds from online seed banks varies depending on strain and whether they are regular, feminized, and autoflowering.
For instance, popular online shops sold regular Afghan seeds at $65.86 for 10 seeds on average. Feminized Afghan seeds were higher at $85 for a pack of 10 seeds.
Autoflowering or automatic seeds are priced even higher. For instance, 10 seeds of auto-flowering feminized White Widow cost around $120 on average.
Feminized seeds are priced higher as they offer a much higher yield. Regular seeds only have a market share of around 10%. Autoflowering seeds are even more in-demand as they are easy to manage and grow. They also grow significantly faster. This is why autoflowering feminized seeds are priced much higher than regular seeds.
How much does marijuana delivery cost?
Most mail order marijuana delivery services send products through Canada Post Xpresspost, arriving within 2-3 business days in most areas of Canada.
Shipping costs can vary depending on the weight of the package. However, most sites offer a flat rate to customers of around $15 CAD on average for delivery.
Most companies also offer free delivery if customers order over a certain amount. This is generally anywhere from $100 – $200. These prices should be kept in mind for anyone looking to price their marijuana delivery competitively. At WeedSmart, we include free shipping on orders over $149.
How much does it cost to start a marijuana delivery company?
With little investment needed and huge profit margins, marijuana delivery is one of the best marijuana businesses you can start under $1000.
These services are operated online making it an easy and practical startup idea.
Marijuana delivery companies generally source weed from dispensaries and farms. From October 17, it will be legal for anyone to grow a small amount of weed from home which may make things easier.
Other than stock, the most important cost will be your website. Marijuana delivery companies must have a professional and easy-to-use e-commerce website. Hiring a professional web designer for this is recommended.
Other costs are minimal, such as packaging. Mailed cannabis must be packaged discreetly and should not be able to be smelt or identified in any way.
Many marijuana delivery services operate in a gray area of the law. However, marijuana-retailers should stay informed of the laws of different provinces and Canada’s strict marijuana marketing and packaging laws.
Wrapping it up
Canada marijuana delivery is a lucrative industry. Many companies already experience high-profits. These are likely to grow even more as marijuana is legalized in Canada later in 2018.
Pricing can be a tricky subject, with different marijuana products requiring different prices. However, the price of a gram of flower stays fairly consistent. While more competition will come with legal and government sales, marijuana delivery will remain profitable.
Many Canadians prefer to order online and receive weed and other products straight to their door. Certain provinces will only have a limited amount of dispensaries, making delivery an ideal option for consumers in some areas.
As marijuana enthusiasm in Canada continues to increase, there will be even more demand for mail order marijuana.