Why Does Cannabis Have Such a Huge Variation in Prices?

If you’ve ever walked into a dispensary and seen an ounce of high-quality cannabis selling for $331, then looked over and found another one for just $99, you’ve probably wondered: What’s going on? And why are some eighths going for $100?

The answer lies in a mix of factors like cultivation methods, legal regulations, branding, supply and demand, and market trends. Let’s break down why U.S. cannabis prices swing so wildly.

Quality and Growing Conditions

Not all weed is created equal. The biggest price driver is quality. Factors include:

• Indoor vs. Outdoor Cultivation – Indoor-grown weed is often more expensive due to higher production costs (electricity, climate control, specialized care).
• Hand-Trimmed vs. Machine-Trimmed – Hand-trimmed buds maintain more trichomes and potency, making them pricier.
• Organic and Craft Cannabis – Like farm-to-table food, boutique cannabis brands focusing on small-batch, pesticide-free growing charge a premium.

Supply and Demand Fluctuations

The local cannabis market conditions play a big role. Some states, like Oregon and California, have an oversupply, leading to cheaper prices. Meanwhile, newer markets like Missouri and New York have high demand but limited supply, keeping prices high.

Why Do Some Places Have Super Cheap Ounces?

• Surplus Buds – Sometimes growers end up with too much product and need to offload it at a discount.
• Lower Quality or Older Stock – Some budget ounces are older, less potent, or lower-grade popcorn buds.
• Promotional Pricing – Some dispensaries use $99 ounces as loss leaders to get you in the door and upsell other products.

Legalization and Taxes

Where you buy your weed also determines the price.

• States with high cannabis taxes (California, Illinois, Washington) see much higher prices.
• Medical vs. Recreational – Medical patients in many states pay less due to lower tax rates.
• Licensing Fees and Compliance Costs – Legal growers and sellers pay hefty state fees, which get passed on to consumers.

In contrast, some illicit market weed is much cheaper because they don’t have to deal with compliance costs—but it comes with quality and safety risks.

Branding and Luxury Cannabis

Ever seen an eighth of weed for $100? Welcome to designer cannabis.

• Celebrity-Endorsed Brands – Brands like Cookies, Viola, or JAY-Z’s Monogram market themselves as premium, justifying higher prices.
• Exclusive Genetics – Strains developed in-house or bred for unique effects, flavors, or high potency sell at a premium.
• Luxury Packaging – Fancy glass jars and sleek branding drive up prices, much like craft beer or designer clothes.

Location, Location, Location

Dispensary prices vary by region, even within the same state.

• Tourist Areas (Vegas, LA, NYC) – Expect higher prices because visitors are willing to pay more.
• Rural vs. Urban Dispensaries – Cities with many dispensaries have more competition and lower prices, while remote shops may charge more due to limited options.

The Black Market vs. Legal Market

Even in legal states, the illicit market still thrives because it often offers cheaper, untaxed cannabis. However, black market weed lacks quality control, lab testing, and guarantees of safety.

So, Should You Buy the $99 Ounce or the $100 Eighth?

It depends on what you’re looking for.

• Budget buyers – If you just want something to smoke, a discounted ounce can be a great deal.
• Connoisseurs – If you prioritize flavor, effects, and quality, paying a premium may be worth it.
• Medical Users – You might need something with specific terpenes or cannabinoids, which often means paying a little more.

At the end of the day, cannabis pricing is a mix of market forces, quality, and branding. Shop around, look for deals, and always buy from reputable sources to get the best experience.

For more tips on finding the best cannabis deals, check out our guide to getting weed deals in California​.