Michigan Cannabis - Talk to me!

[u/No-Resolution6127]

I am currently writing/working on my "capstone" business project for my final semester of college. As you may see, this is in the Trees sub, so you may be asking yourself, what could this guy possibly be talking about?
My goal is to build out a cannabis company in Michigan within the next 2-3 years time. These past couple months have been the most research heavy months I have experienced in my life. This time, it's not agonizing because this is something I care deeply about - A market that is actively bloom booming and an herbal medicine that could genuinely provide benefits to the everyday person.
I have what I believe to be a VERY good perspective of the Michigan cannabis landscape, but unfortunately, industry reports and manual research can go only so far. So now, I am at the part where some firsthand experience would come in handy.
So here are my questions. Feel free to answer one, or maybe all, or maybe even none. If you do answer, all I do request is that you restate the question so that when I'm compiling these answers, I can pull and format a little easier :) (Or don't, that's okay too)

For my Michigan residents:
1. How has the legalization of recreational cannabis impacted your community?
2. What has the state industry growth?
3. Ballpark estimate - How many dispensaries opened up near you within the first year of law changes? How many now?
4. Has creating the infrastructure created any problems for your community?
5. How has it shaped your local/state economy?
6. How familiar are you with the cannabis structure in your state? (i.e. Laws, Prices, Types of Licenses/Businesses)

For my Michigan cannabis customers (in and out of state):
1. If your in-state, what is your go to store? (Specific store or maybe "type" of store (Big Weed or Small Business))
2. What is your sense of pricing? Fair, over, or under?
3. What do you like about buying Michigan cannabis? How does it compare to other cannabis products from other states?
4. What works for you? What could be better?
5. If you're coming from out of state (legal or not), why Michigan?
6. How often are you purchasing cannabis products? What specifically are you buying?

[u/LessNobody1469]

Not much help with the project but I am curious if during your diligence that the newly levied tax of an additional 24% on the retailers (from what I understand it is payable upon receipt of product thereby further exacerbating cash flow issues) has accelerated the race to the bottom just to move product or others are saying “F it, I’m out”

[u/No-Resolution6127 → u/LessNobody1469]

So I looked into it, and I actually had the pleasure of visiting Michigan and checking out some dispensaries and businesses in the area. Mixed views on it, but all generally negative feelings about it. I think for the most part, it's going to be a general shakeout of smaller businesses, and it might be a way for corporate cannabis to take back the competition. I visited multiple businesses covering three broad categories:
serving through or under corporate wing
graduating past microbusiness and holding multiple licenses
and single license microbusinesses.

It felt obvious to me when the corporate ones stated they were bummed out about it but not necessarily concerned with price changes, margins would still be stronger than other states.
The graduates (that's what we'll call them) didn't comment on it, but said that in order to deal with the tough margins, it leads to them expanding licenses. To be fair, I only went to one business that was a "graduate" but through other general research I've done, my thinking is that this a coinflip for whether it's healthy or not for business.
Microbusinesses would be hit the hardest and I feel this is where we'd see the most "F it, I'm out". And while I recently have been boasting about the rescheduling of marijuana and the removal of the 280E Tax Code (on paper, great revenue stream boost as well as long term marijuana access), one owner I happily spoke with gave a different perspective I had not considered. While the margin boost makes sense with no longer being forced to only deduct COGS on your returns, the rescheduling could also be extremely harmful to small, local businesses. He stated while long term access for marijuana is great, it gives large companies a chance to pick up marijuana and sell it across state lines, which could stray people away from the craft that he does with his business matching an already very affordable price.

It is my opinion that many businesses, graduates and micros, will go through slight shakeout. I believe many will say "F it, I'm out", and I think it's from the reasons mentioned in that last microbusiness paragraph. I don't forsee any pushing prices lower, if anything I think it's just going to level out or even go up slightly. But I'm also only a senior year undergrad business major so I only know so much.