Clever marketing with an emphasis on convenience and customer service may be the short-term advantage of the black market.
However, with every charge laid and product seized, the cost of black market participation only increases. As the price for cannabis falls, the revenue to black market only increases. Using the most basic principles of Economics,
we know that rising costs (financial and also police charges, convictions, and incarceration) combined with falling revenues does not bode well for commercial success. Eventually, the Black Market will be reduced to what ever minimal level is “natural”. Black markets exist in many industries but most industries are not connected to organized crime. To understand this better by using an example, paying a contractor under the table in cash without HST or a receipt is a Black Market transaction. The polices, regulations, and laws will catch up as social acceptance grows. We said a long time ago to expect the first legal roll out to look at the Alcohol Act and the Tobacco Act and always use the most restrictive and limiting from either and apply it to the legal cannabis industry – and toss in some industry unique limitations and restrictions for good measure. We will see if branding of devices (vapourizers, grinders, etc) will be exempted assuming this amendment remains – many do not believe it will remain or if it does remain that it will have a reasonably short duration.
The key is to not let the hucksters on social media tell you why all of this is somehow bad. This is the end of the prohibition and the rewards will only grow. Another example is the medical stream where the usual suspects are predicting recreational will eliminate the medical steam and since the margins are lower in the recreational stream they tell followers to not invest and/or sell what you own and do it now.
THE END of PROHIBITION
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