Just months after opening, the first legal pot shop in Washington State is going out of business.
Stonehenge Cannabis, a recreational marijuana store located in Lyle, Washington, has placed its’ focus on closing the shop after the Washington State Liquor Control Board decided to prohibit ‘bundling.’ The practice of bundling includes selling a little bit of marijuana with a non-cannabis product or paraphernalia so the sale can be used as a tax deduction.
According to the article on Marijuana Business Daily and the owner, the practice of ‘bundling’ was the only way for the store to stay afloat.
We sympathize with Stonehenge Cannabis and the unfair tax structure which has been crippling our industry. Cannabis Citys’ James Lathrop has been especially vocal about the tax structure that puts retail shops at a disadvantage from the beginning. We believe that recreational retail shops should be given a favorable chance of survival, especially in a brand new industry, instead of being handed a bleak situation.
But, is this really the reason why Stonehenge Cannabis is about ready to close its’ doors? Or, maybe its’ not just one thing but a combination of reasons?
As much as we sympathize for Stonehenge Cannabis, we can’t ignore the fact that this recreational pot shop is located in a town of 500 people. I’m not really sure you can expect a specialty shop to survive in a town this small, let alone a recreational weed store.
To echo this sentiment, you don’t have to go further than the town’s Wikipedia page:
The downtown area has one grocery store (which is a super-sized quick-mart), two churches, a tavern, a restaurant/cafe, a gas station and vehicle repair shop, a second-hand store, an espresso stand, and a hotel. Other small businesses come and go, and all are located in the downtown area.
Even the Wikipedia page states that besides the staple businesses, “small businesses come and go,” as if it’s some sort of ritual.
What are your thoughts on this unfortunate closing? Do you have any ideas or suggestions how Stonehenge may be able to stay in business?
Manic Conrad
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Shiftless Pilgrim says
I’m guessing that they hoped to get biz from across the Columbia in Hood River and the Dalles.
Seattle Marijuana Blog says
You bring up a good point.
About 10% of americans on the West Coast have used marijuana in the last month (according to recent polls) Let’s just say that would be approximately 2,250 of the 15,000 that live in the Dalles and 7,500 that live in Hood River.
Would be curious to know how many of those did make the 40 minute round trip (in either direction) to purchase recreational marijuana.
I couldn’t imagine it would be a large enough number to sustain the business. And to open the shop at about the time Oregon passed marijuana legalization…
Shiftless Pilgrim says
Hood River is a big destination for wind surfing, the town is filled with bars, restaurants, camping, B&Bs and motels to cater to tourists. I believe there was going to be a 502 shop right across the Columbia in White Salmon, I can’t tell if it opened, but I’ll bet they were thinking of the demographics. When Oregon legalizes pot shops, I’m sure Hood River will be taken care of.
James Alexander says
There’s already a shop right across the river in Bingen. Few mins drive Hood River.
Seattle Marijuana Blog says
Interesting about the demographics. Thanks for the additional info and perspective!
Paul Lyons says
Thanks for the update about this!
It’s unfair that these legal cannabis businesses are so burdened with taxes. The WA state and federal government are not giving them a fair chance to compete with the black market.
Manic Conrad says
Glad you found it helpful, Paul!