legalizing marijuana: the business mentor: dr. j. lee brown presenter: ashley boyd the economic...

Legalizing Marijuana: The Business

Mentor:Dr. J. Lee Brown

Presenter:Ashley Boyd

The Economic Benefits of Legalizing Marijuana

Research Outline

1) How profitable is Marijuana?

2) What's the opportunity cost?

3) Is marijuana legalization probable?

4) Is marijuana marketable?

How Profitable is Marijuana: The Government

~1.3 billon dollars of tax revenue annually ~7.7 billion dollars in reduce police force and prison costs

annually Total: ~9 billion dollars a year

This could increase the education budget by ~11%

abcnews.com Thecrimereport.org

How Profitable is Marijuana: The Corporations

James Lathrop made $3.1 million in sales in 2014 with Seattle's first legal marijuana shop

But was taxed: $510,000 federal

$778,000

state

Store Expenses: ~216,000 a year

Total Estimated Profit: ~1.6 million annually

marijuanabusinessnews.com

abcnews.com

How Profitable is Marijuana: The Economy

Indeed.com list 726 available jobs in the marijuana industry in the U.S

Colorado also has seen an economic boost since legalization.  Colorado is ranked as one of the fastest growing economies.

The unemployment rate is at its lowest since 2008, well below the national average

” I’m not claiming a direct causation to marijuana legalization, but marijuana

legalization certainly has not hurt Colorado.”– Drugpolicy.org

businessinsider.com

Is Marijuana Legalization Probable?

Schedule 1 drug

Regulation

Schedule 1

1980 - NORML petition comes into effect

1999 - Marijuana and Medicine is published

2009 - vote by the American Medical Association (AMA), to reverse its long-standing position that marijuana should remain in Schedule I

file:///C:/Users/Ashley/Downloads/DPA-MAPS_DEA_Science_Final.pdf

Is Marijuana Legalization Probable?

Schedule 1 drug

Regulation

Regulation

Same limitations as alcohol:

• 21 years of age

• Can not be consumed publically

• Can only be sold in government regulated dispensaries

i.e ABC Store

Is Marijuana Legalization Probable?

Schedule 1 drug

Regulation

Surgeon General’s Warning

Is Marijuana Marketable?

28,700,000 users in North America

This market does not provide enough revenue

Trying to reach a new market

Development of a Prototype

unodc.org

What This Prototype Means

It allows for better regulation

Helps establish a new market

Creates a more elegant experience

Current Legal Dispensaries

A New Kind of Dispensary

Think Tank

Target Market: People who don’t normally smoke marijuana

Why?

Different Flavors

Mask the Smell

Removable Tip

Design Marketing Strategies for Different People

Gender

Social Status

Co-Branding

“Stay at home mothers”

More elegant experience Skittles, Mountain Dew Baja Blast, Hershey's

1. "Cigarette Smoking among U.S. High School Students at Lowest Level in 22 Years." Centers for Disease Control and Prevention. Centers for Disease Control and Prevention, 11 June 2014. Web. 10 July 2015.

2. "United Nations Office on Drugs and Crime." United Nations Office on Drugs and Crime. N.p., n.d. Web. 10 July 2015.

3. "DrugFacts: Is Marijuana Medicine?" DrugFacts: Is Marijuana Medicine?N.p., n.d. Web. 10 July 2015.4. "California Proposition 215, the Medical Marijuana Initiative (1996)." - Ballotpedia. N.p., n.d. Web. 10 July 2015.

<http://ballotpedia.org/California_Proposition_215,_the_Medical_Marijuana_Initiative_(1996)>.5. "State Marijuana Laws Map." State Marijuana Laws Map. N.p., n.d. Web. 10 July 2015.

<http://www.governing.com/gov-data/state-marijuana-laws-map-medical-recreational.html>.6. "How Marijuana Legalization Will Affect Mexico’s Cartels, in Charts."Washington Post. The Washington Post, 09

Nov. 2012. Web. 10 July 2015. legalization-will-affect-mexicos-cartels-in-charts/7. PBS. PBS, n.d. Web. 10 July 2015. <http://www.pbs.org/wgbh/pages/frontline/shows/drugs/special/math.html>.

8. "Taxing Marijuana: The Washington and Colorado Experience." Tax Foundation. N.p., n.d. Web. 10 July 2015. 9. "MarijuanaBusinessNews.com - How Much Money Does a Medical Marijuana Club

Make?" MarijuanaBusinessNews.com - How Much Money Does a Medical Marijuana Club Make? N.p., n.d. Web. 10 July 2015. 

References

THANK YOUQuestions?

Contact Information:

Ashley “AB” Boyd

aboyd10@broncos.uncfsu.edu

252-571-9245

Acknowledgments:- Dr. J. Lee Brown- The McNair Scholars Program- Fayetteville State University