The Benefits of Free Market Cannabis Trade

Anyone can launch a cannabis or medical marijuana business in a free market. As a result, running a company cannot be taken for granted. With so much competition, a cannabis business can only flourish if it runs smoothly, serves its customers well, and is open and honest about its products and services.

On the other hand, in areas where the government restricts the number of licenses available, cannabis businesses that are fortunate (or well-connected) enough to “win” a license are exempt from the norms of customer service due to the lack of competition. The existing licensed businesses may simply "coast," not needing to enhance operations, services, or goods year after year, because they don't have to fear about another business coming along and doing everything even better.

Oklahoma will eventually become known for not only its benign regulatory environment, but also for its burgeoning cannabis culture, thanks to its free market system. How could this area not become the cannabis utopia it was supposed to be if all the artists are free to make their art?

In a free market, there is no such thing as a monopoly

Who makes the decision whether or not to launch a cannabis business? After determining where to obtain finance, learning operations, and developing a sales and marketing strategy, the entrepreneur makes a decision.

What is the patient's/preferred customer's method of purchasing cannabis? Any of the numerous retail establishments. You make your decision based on the following factors: location, commute, pricing, product selection, service, and trust. As a result, having a large number of stores to pick from benefits the customer. Greater choices, more freedom, and more enjoyable shopping!

What brands do you choose to buy? What brands should a retailer carry, for example? In a free market, there are a plethora of brands to choose from. More options equals more freedom.

Currently, the state of Missouri has chosen to give a small number of licenses to what appears to be mostly multi-state operations. Several prominent lawsuits in Missouri are now pending, with local families wanting answers as to why their petitions were denied.

The fairness of it all is the main rationale for preferring a free-market system versus a limited-license system. Who gets to choose who gets to participate in the game? It's simply not fair to place that power in the hands of politicians and regulators who have no experience with cannabis — or, to be honest, with running a business. So, who makes the final decision? The People! All choices in a free market are made by the people engaged, not by the government on the sidelines.

In a market with a restricted number of licenses

The government must first provide the entrepreneur a license for medical marijuana. This is essentially a lottery. So, no matter how well-thought-out your plans are, just because you want to go into the business doesn't imply you can.

The customer can shop at any of the stores that received licenses, but there will be fewer options due to the lottery mechanism. And the stores that do exist are essentially grandfathered into a government arbitrage, so they aren't subject to constant competition.

Because there are fewer producers, the number of items and brands available is limited.

Out-of-state brands will be required to license operations from an existing operator under a limited license structure. So while the brands may differ on the store, they were all cultivated or processed by the same person, who simply applied a new label to each jar.

That is not the same as transparency. That is not the definition of liberty. That is the government treating you and everyone else as though we are incapable of making our own judgments and rely on the government to "stabilize" the market for us. This is not in our best interests. This is what makes business for the select few who are “awarded” licenses in a limited-license market very easy and profitable.

Check out us at Frontier Medicine for medical cannabis. We are open 24 hours. See us at your convenient time.

**Disclaimer: This content is not the advice of a doctor; no product promoted herein is approved by the FDA to treat, cure, or prevent any disease.