More than the previous year, tiny bags of legal cannabis have doubled in value in California—hitting a record $100 per eighth-ounce in San Francisco this year. This has generated a spate of teeth gnashing amongst nearby shoppers, and no tiny quantity of gloating from outsiders.
But the doom and gloom is only half the story in California.
That old value point of $60 per eighth-ounce has evolved into a value spectrum that now runs from about $15 per eighth-ounce all the way up that scary $100 bag.
One particular prime instance of the savings to be had is the budding delivery service Flower Co., which utilizes a business enterprise model that is uncommon in the cannabis planet. Dubbed ‘the Costco of cannabis,’ Flower Co. sells direct to members who spend an annual charge of $79 to get access to name brand cannabis that is about 30%-50% less expensive than going retail costs.
“Once they get locked in, they do not want to acquire from everyone else — they’re fundamentally burning their funds when they do that.”
The enterprise presently has about 600 members in the Bay Location. They launched March six in Los Angeles with an influencer campaign aimed at reaching Grammy nominees like Drake and Childish Gambino. Famed startup accelerator Y Combinator (Airbnb, Dropbox) invested March 19.
Flower Co.’s most significant seller is a $25 half-ounce of “pre-ground” Blue Dream. That is far more than half off existing costs.
This wholesale cannabis club is not great, or proper for everyone, but enterprise co-founder Tony Diepenbrock says, “Flower Co. delivers a terrific option to men and women who cannot tolerate the value increases of California legalization.”
Published: March 20, 2019