Even though the price of an 1/8th ounce of recreational cannabis in Colorado has dropped from $50-$70 to $30-$45 in the last year, revenue is up, because the number of visitors to stores has greatly increased.
From Convergex's Marijuana Store Survey and Industry Outlook Q2 2015:
A quick look at the latest available state tax data from the Colorado Department of Revenue show these stores in the aggregate beat its 2014 comps from January through April. For example, the state grossed $3.55 million in revenues from the 10% retail sales tax in January, which suggests stores earned $35.5 million in revenue. That's a 153% increase from the prior year. Revenues in February and March grew by 164% and 126% on the year respectively, while sales rose by 98% y/y to $43.9 million in April. If we use the average of revenues for the first four months of this year – about $40 million – as our monthly run rate for the balance of 2015, total revenues for 2015 could reach $480 million. That would mark a +50% comp to last year's revenues of $313 million for recreational marijuana sales.
