Survey: 1 in 4 Cannabis Retailers Eye Raising Prices to Combat Inflation

GreenGrowth CPAs, a national cannabis accounting and advisory firm based in Los Angeles, reports that a quarter of all cannabis enterprise operators plan on raising prices as much at 10 percent in response to inflation.

After two years marked by the crisis and disruption of global pandemic, GreenGrowth CPAs held a month-long survey this summer among cannabis sellers regarding the impact of inflation on their businesses.

The survey revealed 1 in 4 operators feel spiraling inflation forcing their hand to increase prices in the near or immediate future. Other operators said they intend to absorb the additional costs and ride it out before increasing costs to their customers.

“The cannabis business landscape is ever-changing,” said GreenGrowth CPAs CEO, Derek Davis, who founded the firm in 2016. “And, in order to provide accurate financial data to our clients, we have to consider the economic impacts of rising inflation costs, as well as other factors that can impact the business performance of cannabis companies.”

A decline in good vibes

The decision by some operators to consider raising prices may stem from a growing malaise about the industry in general. Out of the respondents who participated in the 15-state survey, half believe their cannabis business environment has declined in the last 12 months.

That stands in stark contrast to the 76.6 percent who responded with a positive/very positive assessment of the business in last year’s inaugural Cannabis CFO Survey.

For more information on the complete survey analysis, click here to download the digital report.