Part Two of a series looking at the rapidly maturing cannabis industry in Michigan. To read Part One, click on Michigan Built A $3 Billion Cannabis Industry – Now Comes The Hard Part
Consumers Are Winning Today With $40 Ounces And Bargain Prerolls. But Industry Experts Say Those Deals May Not Last Forever.
ANN ARBOR – If you’ve shopped for cannabis in Michigan recently, you’ve probably noticed something remarkable.
Walk into many dispensaries and you’ll find $40 ounces, buy-one-get-one specials, loyalty rewards, flash sales and deeply discounted preroll bundles. Some stores even advertise 15 prerolls for $25, making legal cannabis more affordable than ever before.
For consumers, it’s a great time to buy marijuana.
For the businesses selling it, the picture is far more complicated.
Industry executives and economists say Michigan’s cannabis market has reached a turning point where intense competition, oversupply and aggressive discounting are squeezing profits even as sales remain strong.
The question isn’t whether consumers are benefiting today.
It’s whether the businesses offering those bargains can continue doing so.
Why Michigan Cannabis Is So Cheap
1. More growers than ever before
Competition has increased cannabis supply.
2. Hundreds of dispensaries
Retailers compete aggressively for customers.
3. Constant promotions
Flash sales, loyalty rewards and bundle pricing are common.
4. Border competition
Michigan attracts shoppers from neighboring states because prices are often lower.
5. Consumers expect discounts
Years of promotions have changed shopping habits, making it harder for retailers to charge regular prices.
How Did Prices Get So Low?
The answer begins with simple economics.
Michigan has one of the nation’s largest legal cannabis markets, with adult-use sales totaling approximately $3.17 billion in 2025.
As hundreds of growers, processors and retailers entered the market, competition intensified.
Unlike the early years of legalization, when demand exceeded supply and prices remained relatively high, today’s market is characterized by abundant inventory and hundreds of businesses competing for many of the same customers.
Patrick Anderson, principal and CEO of Anderson Economic Group, said that outcome was predictable.
“The market for flower and edibles is limited by both the number of consumers and the amount they are willing to spend,” Anderson said. “Like we warned in 2018, both are limited. As a result, sales, discounts and promotions are proliferating at dispensaries, and we can expect that to continue well into the future.”
The Retail Playbook
Michigan dispensaries increasingly resemble traditional retailers.
Just as grocery stores advertise milk, eggs or soft drinks at deeply discounted prices to attract shoppers, cannabis retailers use promotions to drive traffic and increase purchases.
Loyalty programs, text-message specials, weekend flash sales and bundle pricing have become common across much of the state.
Some heavily discounted preroll promotions use products made from shake—the smaller pieces of cannabis flower left after premium buds are processed—providing consumers with a lower-cost alternative while allowing retailers to move inventory.
Not every consumer, however, is looking for the lowest price.
Premium flower, boutique cultivators and specialty brands continue attracting customers willing to pay more for quality, terpene profiles and unique genetics.
When Discounts Become The Normal Price
Joshua Covert, CEO of MedsCafe, says discounts are an important retail tool—but only when they generate additional business.
“Michigan consumers have benefited from some of the lowest cannabis prices in the country, and that’s a good thing,” Covert said. “But retailers have to be careful. A promotion should bring in new customers, increase the size of a purchase or help move specific inventory. If you’re simply discounting a sale that was already going to happen, you’re not creating new business—you are just giving away margin.”
Covert believes years of promotions have changed consumer expectations.
“Michigan consumers have been exposed to so many daily deals and rotating promotions that many have learned there’s usually another discount coming,” he said. “That makes the advertised regular price less meaningful because customers increasingly judge value based on the price they expect to actually pay.”
Retail experts often refer to that phenomenon as price anchoring—when shoppers begin viewing the sale price as the “real” price.
Will Prices Stay This Low?
No one expects prices to rebound overnight.
Competition remains intense, wholesale cannabis prices remain under pressure and new retailers continue competing for market share.
At the same time, some businesses are responding by differentiating themselves rather than simply cutting prices.
They are investing in premium flower, craft cultivation, proprietary genetics, customer education, delivery services and stronger branding.
Industry consolidation is also expected to continue as financially weaker operators exit the market or merge with larger competitors.
Good News For Consumers—For Now
Michigan consumers have clearly benefited from the industry’s fierce competition.
Lower prices have made legal cannabis more accessible while helping attract shoppers from neighboring states where prices remain significantly higher.
But those bargains depend on healthy businesses.
If enough operators struggle with shrinking margins, higher operating costs and continued price pressure, today’s consumer-friendly market could eventually look very different.
The biggest winners in Michigan’s cannabis industry have been consumers.
Whether businesses can continue winning at the same time remains one of the industry’s biggest unanswered questions.
