Marijuana legalization day in Canada defied even the most optimistic projections.
Demand was so high, that dispensaries in Quebec, for example, are already running out of marijuana products.
TL;DR The SQDC could have made as much as $1,381,250 in cannabis sales yesterday. That number is probably much, much higher, however. The agency may have made as much as $3,187,500.
In Montreal, lines wrapped around entire city blocks hours before the opening of the SQDC, the government-run agency with a monopoly on cannabis distribution.
That monopoly ensures that the government of Quebec and its suppliers, alone, stand to benefit from massive sales.
Products aren't cheap, either. The most expensive item for sale at the SQDC comes in at over one hundred dollars.
That did not deter sales, however.
According to le Journal de Québec, the SQDC processed about 42,500 transactions in store and online.
While official revenue estimates from yesterday have yet to be released, we can calculate an approximate number.
The average price of a single product at the SQDC is $32.50. That muliplied by the number of transactions produces a whopping $1,381,250 in sales.
But that's only the most conservative estimate. Our own representative in the downtown SQDC branch witnessed multiple customers make single purchases of over two hundred dollars.
$32.50 is moreover only the lowest average price for any single purchase and most ended up spending a lot more that $32.50 each.
If customers spent on average $75 dollars per purchase, that brings SQDC legalization day sales up to $3,187,500.
If customers spent on average $100, the SQDC made $4,250,000.
On its website, the SQDC announces its intention to quickly turn a profit. Today, that seems more than possible.
Perhaps government regulators will inflate prices in order to capitalize on initial demand.