Cannabis companies weigh pricing strategies after OCS margin cut

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Companies aren’t required to pass along the savings to consumers by lowering their prices, so many observers believe licensed producers will adopt a range of pricing strategies when the new margins come into effect.Article content The Canadian Press is not identifying the sources because they were not authorized to disclose the information.

Meanwhile, Moncton, N.B.’s Organigram Holdings Inc. refused to discuss its pricing model, but spokesperson Paolo DeLuca says it will ensure prices are attract to consumers and generate a reasonable margin. But lowering prices can also weigh on profitability and the company’s ability to fund other ventures, and send a false signal to consumers that a product is cheaper because it is of lower quality.

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Cannabis companies weigh pricing strategies after OCS margin cutCannabis companies aren’t required to pass along the savings to consumers by lowering their prices, so many observers believe licensed producers will adopt a range of pricing strategies Not sure of the relevance here. In Ontario, LPs sell to the OCS who then sell to retailers. How would the OCS reducing their markup impact a producers price? It wouldn't.
Source: globeandmail - 🏆 5. / 92 Read more »

Cannabis companies weigh pricing strategies after OCS margin cut - BNN BloombergCanopy Growth Corp. will hold its prices as licensed pot producers weigh whether to pass along to consumers the savings from the Ontario Cannabis Store's forthcoming margin decrease.
Source: BNNBloomberg - 🏆 83. / 50 Read more »