Cheap Buds for the Working Stoner are Coming from Hexo Corp

Cheap Buds for the “Working Stoner” by Hexo Corp

cheap weed options from hexo corp

There are many within the cannabis industry that would love the “Old stoner stereotype” to die down. We’re seeing cannabis brands launch as if they are the “Apple of weed”, with high-end promises and high-end prices.

For the past decade (or so), many brands have been trying to market their product for “premium buyers”. High end professionals making between $70,000-$100,000 per year is their target audience, and that will do whatever it takes to convince everybody that “THIS” is the average consumer.

While the charade has been entertaining to say the least, the fact of the matter is that the vast majority of cannabis consumers make less than $30k per year according to a recent Market Analysis from Brightfield Group.

The truth is that for most of us, the idea of spending hundreds of dollars per ounce actually sends shivers down our backs. Of course, we’d love to have some of that premium bud, but the $200+ price tag on that ounce will definitely hurt our economies.

This is best illustrated by the legal Californian cannabis market, where the vast majority of consumers are still buying “black market cannabis” due to the over-taxation and high prices on legal weed. This forces those who don’t make $70k+ per year to call up their old hookup (who got some better weed nowadays) and make their purchases.

One Company Sees the Broke Stoner

Hexo Corporation is aiming to bridge the gap for dispensaries by making a low-cost strain with “decent THC levels”. Think about it as if they are making the “Bud Light” of weed. Hexo understands that most consumers, though they would love to, simply cannot afford $200+ per ounce price tags. These consumers tend to buy a gram here or there, but mostly buy their weed from unlicensed dealers (who don’t have to pay tax).

From the consumers perspective, it’s the wisest thing you can do for your personal economy. Of course, you’d “like to participate” in the legal trade, however the current price point makes it difficult.

Hexo aims to create “decent strains” at a cost of lower than $5 per gram. In fact, the estimated price point is $4.45 per gram, with the only snag being that you have to buy an ounce at a time. However, $125.70 is by far more accessible than $200+.

Strains like Blue Dream goes for $260 an ounce.

Hexo’s strain – entitled “The Original Stash” – is their attempt to cut into black market dominance by providing a good, low cost strain for the “average consumer”. Ah yes, the “stoner” is once more coming back into the market equation and as a result, we should begin to see many more companies create “low cost strains” for that market share.

Why the Rest of the Industry should catch on

It’s been too long that we have had yuppies dictate the cannabis industry. The truth of the matter is that the vast majority of cannabis consumers at one point in time self-identified as “stoners”. While the PC culture tried to make such words “offensive”, those of us who have been long time stoners feel that the negative stereotype was “reclaimed” by the cannabis culture.

And so, while the “premium cannabis brands” wants nothing to do with the stoner stereotype, they are ignoring the vast majority of the marketplace.

It’s time that the rest of the industry understands that the “real money” is not trying to capture the “few big spenders”, but to capitalize on the “millions of average to low spenders”. I think the industry has reached this glass ceiling and are beginning to understand this fact.

In fact, some of Canada’s latest statistic suggest that close to 80% of all weed purchased there are done through illegal channels.

The Arrogance of the Government & Cannabis brands

You can’t simply make something legal and think people will spend top dollar to buy it. If there are cheaper alternatives, consumers will always go to the more competitive option. In this case, the black market and unlicensed dispensaries.

This goes for many of the “new cannabis brands” on the marketplace. You can’t think “just because it’s legal now” customers will choose me, ignoring the price point.

We understand that the government involvement in the process (taxes, fees, etc), elevates the price point – however, if any $30k- stoner has to choose between $5/g and $20/g of weed, the cheaper option will always win.

Hexo is setting a good precedent for the industry by addressing this problem. Hopefully, governments will learn that overtaxing a new industry will not address the problems it aims to fix. You must first allow the industry to flourish which means you need to keep taxes low and permit as many people to participate until it stabilizes.

Once the market is stable, there will be enough tax revenue to satiate the pockets of the government. Then, and truly only then, will “Top Dollar Cannabis Brands” make sense. Right now, it’s time to cater to the “Stoner” – if we truly want the market to thrive for generations to come.