Interview With a Black Market Cannabis Dealer

Introduction: Cannabis legalization in Canada was a landmark moment, promising to bring a once-illicit substance into the light of regulation, safety, and tax revenue. However, the black market (aka Legacy Market) for cannabis has not disappeared. Instead, it has adapted and continues to thrive alongside the legal market. To better understand this phenomenon, I sat down with "Jack," a pseudonymous black market dealer who sells dried flower, edibles, pre-rolls, and vape pens. Jack has been in the business for over two decades, witnessing the transition from complete illegality to a regulated industry. In this candid interview, Jack shares his perspective on how legalization has affected his business, why some customers still prefer the black market, and what the future might hold for illegal cannabis sales.

Bio of Jack: Jack is a veteran in the black market cannabis trade, having started his business over twenty years ago. He is college educated, married and has two young children. He operates primarily in urban areas and serves a diverse clientele. Jack is cautious and meticulous, emphasizing quality and customer relationships. Despite the risks, he believes in the resilience of the black market and is determined to adapt and grow in a post-legalization world.

Below is the transcript of the interview

Interviewer: Why do you think the government legalized cannabis?

Jack: I think the government had a few reasons for legalizing cannabis. First, there’s the potential for tax revenue. Legal cannabis sales can bring in a lot of money that the government can use for various programs and services. Second, it’s about control and regulation. By legalizing cannabis, the government can set standards for safety and quality, which is supposed to protect consumers. There’s also the goal of reducing the black market, although that hasn’t worked out as well as they hoped. Finally, there’s a growing recognition that cannabis isn’t as harmful as it was once thought to be, and legalizing it can help reduce the stigma and criminal penalties associated with its use. It’s a complex issue, but those are some of the main reasons behind the move to legalize.

Interviewer: How has your business been affected by the legalization of cannabis in Canada?

Jack: Legalization has definitely changed the landscape. Initially, I was worried that it would wipe out the black market completely, but that hasn’t been the case. There was a dip in sales when the legal stores first opened because people were curious and wanted to try the legal product. But after a while, many of my regulars came back. They weren’t satisfied with the prices, quality, or the selection at the legal stores.

Interviewer: Is there a future for the illegal cannabis market?

Jack: Absolutely. The black market isn’t going anywhere. We’ve been around for decades, and we’ve always found ways to adapt. Legalization hasn’t addressed all the reasons people buy from us. There are still taxes and regulations that make legal weed more expensive. Plus, some people just prefer the experience and the product they get from their black market dealers.

Interviewer: Why do your customers still shop with you rather than go to legal stores?

Jack: There are a few reasons. First, price is a big factor. Legal stores have to charge higher prices because of taxes and overhead costs. I can offer better deals because I don’t have those expenses. Second, quality and selection are important. I source my products from growers I trust, and I can get strains that aren’t available in legal stores. Lastly, it’s about trust and convenience. My customers know me, they know what they’re getting, and they appreciate the personal service.

Interviewer: How have you changed your business since so many legal retail stores opened up?

Jack: I’ve had to adapt. I focus more on quality and customer service now. I make sure my products are top-notch and I’m always available for my customers. I also expanded my product line to include edibles and vape pens because those are in high demand. Staying flexible and responsive to what people want is key.

Interviewer: What are some challenges you face in the current market?

Jack: The biggest challenge is definitely the legal competition. They have more marketing power and can operate openly, which I can’t do. There’s also the risk factor. Even though cannabis is legal, selling it outside the legal framework is still illegal, so I have to be careful. But the demand is there, so I just focus on providing a good product and keeping my customers happy.

Interviewer: Do you see any benefits to the legalization of cannabis?

Jack: There are some benefits. The stigma around cannabis has decreased, which is good for everyone. More people are open to trying it now. Also, the overall quality of cannabis has improved because there’s more competition and more focus on growing techniques and standards.

Interviewer: What do you think about the quality of cannabis in legal stores?

Jack: It’s hit or miss. Some legal products are really good, but a lot of my customers complain about dryness or lack of potency. I think it’s because legal growers have to meet certain regulations that can affect the product. My suppliers can focus more on quality because they’re not bound by the same rules.

Interviewer: How do you ensure the quality and safety of your products?

Jack: I’m very picky about where I get my product. I work with growers I’ve known for years, and I always test everything myself before selling it. I also listen to my customers. If they’re not happy with something, I make it right. Word of mouth is crucial in this business.

Interviewer: What are your thoughts on the government's role in the cannabis market?

Jack: The government’s trying to control everything, but they’re missing out on what people really want. They’re focused on regulation and taxes, but they don’t always understand the market. If they really wanted to eliminate the black market, they’d need to make legal weed cheaper and more accessible, and ensure it’s as good as or better than what we offer.

Interviewer: How do you see the future of the black market evolving?

Jack: We’ll keep adapting. There will always be people who prefer to buy from us for one reason or another. We’re already seeing a shift towards more niche products and personalized service. As long as we stay flexible and responsive to what our customers want, we’ll be around. The black market is resilient.

Interviewer: Have you noticed any changes in your customer base since legalization?

Jack: Yes, I’ve seen some changes. There are more casual users now, people who are curious about cannabis but don’t want to deal with the legal stores. There’s also been an increase in older customers who used to smoke back in the day and are coming back to it. They often find the legal market confusing or too expensive, so they come to me.

Interviewer: What’s your take on the edibles and vape pens market?

Jack: It’s booming. People love the convenience and variety. Edibles are especially popular because they’re discreet and don’t require smoking, which a lot of people are trying to avoid. Vape pens are great for on-the-go use. I’ve had to keep up with the demand by offering a wider range of these products. We can also make much better edibles than the legal market and we are not limited to the amount of THC we can put in our products. I have seen a huge spike in our edibles business since legalization.

Interviewer: Do you think the black market could ever surpass the legal market again?

Jack: It’s hard to say. The legal market has a lot of advantages, but we have our strengths too. We offer better prices, quality, and service, which keeps our customers coming back. If the legal market doesn’t address its shortcomings, there’s definitely a chance the black market could grow even more.

Interviewer: What advice would you give to someone considering entering the black market?

Jack: Be prepared for the risks. It’s not an easy business, and it’s definitely not legal. You have to be smart, careful, and always put quality and customer service first. Building trust with your customers is the most important thing. If you can do that, you’ll have a chance to succeed.

Interviewer: How do you handle the competition with other black market dealers?

Jack: Competition is fierce, but it’s also a motivator. I keep an eye on what others are doing, but I focus on my own business. Providing the best product and service is my priority. If you’re good at what you do, word will spread and you’ll get loyal customers.

Interviewer: How do you deal with the legal risks associated with your business?

Jack: It’s always a concern. I take a lot of precautions to protect myself and my customers. I’m discreet, I don’t take unnecessary risks, and I stay informed about any changes in the law. It’s part of the business, and you have to be prepared for it.

Interviewer: What do you think about the future of cannabis legalization globally?

Jack: It’s definitely moving in that direction. More countries are seeing the benefits of legalization, but it’s going to be a long process. Each place will have its own approach, and that will create different opportunities and challenges for the black market. We’ll just have to keep adapting.

Interviewer: Do you think there’s a way for the black market and legal market to coexist?

Jack: They already do, in a way. People will always look for alternatives if they’re not satisfied with the legal options. The black market fills gaps that the legal market can’t or won’t address. As long as there’s demand, we’ll be here.

Interviewer: How has technology affected your business?

Jack: Technology has made things easier in some ways. It’s easier to communicate with customers and suppliers, and there are more ways to stay discreet. Social media and encrypted messaging apps have been really useful. But it’s also a double-edged sword because it makes it easier for authorities to track activities.

Interviewer: What’s the most important lesson you’ve learned in this business?

Jack: The most important lesson is to stay flexible and always listen to your customers. The market is always changing, and you have to be ready to change with it. Building trust and maintaining quality are key. If you do that, you’ll have a loyal customer base no matter what.

Interviewer: Would you ever consider switching your business to the legal market?

Jack: I've thought about it, and it's tempting in some ways. The idea of operating without the legal risks is definitely appealing. But there are a lot of hurdles. The cost of getting licensed and setting up a legal operation is really high. There are also a lot of regulations and red tape that can make it hard to run things the way I do now. Plus, I’d lose some of the advantages that keep my customers coming back, like lower prices and a more personal touch. So, for now, I’m sticking with what I know. But I’m always open to the possibility if the legal market becomes more accessible and aligns better with how I do business. Interviewer: Do you sell products other than cannabis products?

Jack: No, I stick strictly to cannabis products. I believe in focusing on what I know best and maintaining a high standard of quality for my customers. Selling other types of products would complicate things and could increase the risks. By concentrating on cannabis, I can ensure that everything I offer is top-notch and meets the expectations of my clients. Plus, the demand for cannabis is strong enough that I don’t need to diversify into other areas.

Interviewer: What advice would you give to legal retailers?

Jack: My main advice would be to listen to your customers and understand what they really want. Price is a big issue—legal retailers need to find ways to be more competitive. Quality is another key factor. Make sure your products are fresh and potent. Also, don’t underestimate the importance of customer service. People appreciate a personal touch and reliable service. Building trust takes time, but it’s worth it. Finally, try to offer a variety of products, including some niche items that might not be as common. If you can combine good prices, high quality, and great service, you’ll have a better chance of keeping your customers happy and loyal.

Interviewer: What do you think about the laws, punishments, and police enforcement for people getting caught in the black market?

Jack: The laws and punishments are pretty harsh, and that’s always a risk in this business. I understand the government wants to crack down on illegal activities, but sometimes it feels like they’re more focused on punishment than understanding why the black market exists in the first place. People turn to the black market because the legal market isn’t meeting all their needs. Police enforcement can be tough and unpredictable, which adds to the stress and risk. I think a better approach would be to address the root causes, like high prices and limited product options in the legal market. If the legal market were more competitive and accessible, there would be less need for a black market, and enforcement could focus on serious crimes rather than going after small dealers trying to meet demand. Interviewer: Do you have friends who are black market people who tried to enter the legal market? What was their experience, and do they regret their decision?

Jack: Yeah, I know a few people who made the jump to the legal market. Their experiences have been mixed. Some have done pretty well and appreciate the legitimacy and lower risk, but it’s been tough for most of them. The biggest hurdles are the high costs and strict regulations. Getting a license, setting up a legal operation, and complying with all the rules is expensive and time-consuming. A lot of them felt overwhelmed by the bureaucracy. Some ended up going back to the black market because they couldn’t keep up with the costs or couldn’t compete with larger companies. They don’t necessarily regret trying, but they’ve learned that it’s not as easy as it looks. The legal market has its own challenges, and it’s not a guaranteed path to success.

Interviewer: Do these friends still continue to operate their black market businesses on the side?

Jack: Some of them do, yeah. They keep their black market operations going to supplement their income and cover the costs of their legal businesses. It’s a way to stay afloat while dealing with the high expenses and competition in the legal market. It’s not ideal, but it’s a reality for many who made the transition. They need the extra income to make ends meet and keep their legal businesses viable. It’s a balancing act, but for some, it’s the only way to survive in the current market.

Interviewer: If you were the government and had the power to change the laws to benefit the legal market and take significant business away from the black market, what changes would you make?

Jack: If I were the government, the first thing I’d do is lower the taxes on legal cannabis. High prices are one of the main reasons people stick with the black market. If legal weed were more affordable, more people would buy it. I’d also streamline the licensing process to make it easier and cheaper for small businesses to enter the market. That would increase competition and improve quality and service. Another thing would be to allow for more creative and diverse products. The legal market is too restrictive, which limits what retailers can offer. Finally, I’d focus on education and awareness to reduce the stigma around legal cannabis and help consumers make informed choices. If the legal market were more competitive, accessible, and consumer-friendly, it would take a big bite out of the black market.

Conclusion: The black market for cannabis in Canada remains a significant presence despite legalization. Jack’s insights reveal the complexities and resilience of this underground industry. While legal cannabis offers regulation and safety, the black market thrives on trust, quality, and competitive pricing. As the landscape continues to evolve, both markets will likely coexist, each serving different needs and preferences of cannabis consumers. Jack's story highlights the adaptability and persistence of the black market, suggesting that it will remain a relevant force in the cannabis industry for the foreseeable future.

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